Hyosung Heavy Industries Secures Major US Data Center Contract
Hyosung Heavy Industries has announced a massive $280 million (approx. 3865 billion KRW) supply contract for ultra-high-voltage transformers with two major US big tech companies. According to the company disclosure, the agreement involves supplying 765-kilovolt (kV) and 345-kV ultra-high-voltage transformers through its US sales corporation to power newly constructed data centers.
AI Boom Drives US Power Infrastructure Demand
In the United States, power demand is surging rapidly due to soaring investments in artificial intelligence (AI) data centers by major technology companies. According to investment bank Goldman Sachs, US data center power demand is projected to grow at an average annual rate of 15% through 2030, driving approximately $50 billion in investments for new power infrastructure.
Expanding Local US Production and Global Ambitions
To capture this market, South Korea-based Hyosung Heavy Industries has significantly strengthened its local production capabilities. The Tennessee ultra-high-voltage transformer plant, acquired in 2020, serves as a core base, and ongoing expansions will establish it as the largest production facility of its kind in the US. Furthermore, the company recently established a dedicated ‘Data Center Business Team’ to consolidate design experts in power equipment and stabilization solutions. With cumulative new orders reaching 6.8 billion USD (9.3 trillion KRW) by August 2026, surpassing last year’s annual total, Chairman Cho Hyun-joon stated ambitions to elevate Hyosung Heavy Industries into the global top three within five years amidst the 60-year supercycle in power infrastructure.
