Honeywell, LS ELECTRIC partner on data center power solutions

CHARLOTTE - Honeywell (NASDAQ:HON) and LS ELECTRIC (KRX:010120), a prominent player in the Electrical Equipment industry with strong liquidity metrics and 21 consecutive years of dividend payments, announced Wednesday a global strategic collaboration to develop integrated power management solutions for data centers and commercial buildings.

The partnership aims to combine LS ELECTRIC’s power systems expertise with Honeywell’s building automation capabilities to create hardware and software solutions that improve operational efficiency and resiliency in critical facilities. According to InvestingPro data, LS ELECTRIC operates with moderate debt levels and maintains strong financial health, with liquid assets exceeding short-term obligations.

Initially, the companies will offer integrated switchgear and power management systems to help data center operators control power distribution while preventing interruptions. Future developments will include electrical power monitoring systems based on Honeywell Forge and LS ELECTRIC’s software capabilities, designed to regulate energy distribution and leverage AI-driven predictive maintenance.

The collaboration will also focus on developing battery energy storage systems (BESS) for commercial and industrial buildings, creating microgrids in critical facilities to enhance resilience and manage demand.

"As the global demand for data and energy accelerates, this partnership with LS ELECTRIC combines our complementary strengths to distribute intelligent infrastructure that’s not only resilient and efficient but also future-ready," said Billal Hammoud, President and CEO of Honeywell Building Automation, according to the press release.

JongWoo Kim, President of LS ELECTRIC Power Electric, stated that the collaboration would help deliver "differentiated solutions that enable big tech data centers and large building operators to achieve both energy efficiency and reliability."

The announcement comes as data centers currently consume 1-2% of global electricity production, with demand expected to increase significantly in coming years. LS ELECTRIC, which has delivered high returns over the last year and decade, appears well-positioned to capitalize on this growing market. InvestingPro subscribers can access 13 additional investment insights about LS ELECTRIC, including detailed valuation metrics and growth projections.

In other recent news, LS Electric has been upgraded by JPMorgan from a Neutral to an Overweight rating. This upgrade is accompanied by an increase in the price target to KRW325,000 from KRW255,000. JPMorgan’s decision is based on expectations of strong growth in AI capital expenditures, which could exceed 20% by 2026. This anticipated growth may drive increased demand for power equipment and result in new order wins from hyperscalers. These developments reflect significant potential for LS Electric in the coming years.

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