Hyosung Heavy Industries Wins 386.5 Billion Won Ultra-High Voltage Transformer Orders from Two U.S. Big Tech Firms

Surging Local Power Demand from AI Data Centers
Winning More Orders with Comprehensive Solution Competitiveness
9.3 Trillion Won in New Orders as of August This Year

Hyosung Heavy Industries has received orders worth 386.5 billion won in ultra-high voltage transformers from U.S. big tech companies in September alone, accelerating its expansion into the U.S. artificial intelligence (AI) data center power infrastructure market.

On September 15, Hyosung Heavy Industries announced that it had signed ultra-high voltage transformer supply contracts totaling 386.5 billion won with two leading U.S. big tech firms. The ultra-high voltage transformers ordered in this deal will be deployed in new AI data centers being constructed in both the northern and southern regions of the United States.

Hyosung Heavy Industries 765kV Ultra High Voltage Transformer Installed on the U.S. Power Grid. Hyosung

The contracts are valued at 220 billion won and 166.5 billion won, respectively. Hyosung Heavy Industries will supply both 765kV and 345kV ultra-high voltage transformers. The company's established product reliability and production capabilities in the U.S. are being credited as key factors that strengthened its competitiveness in winning the orders.

Cho Hyunjoon, Chairman of Hyosung, stated, "With the advent of the AI era, we are seeing an explosive increase in demand for power infrastructure, ushering in a super-cycle unprecedented in 60 years. By leveraging our total solution competitiveness—encompassing not only transformers and circuit breakers but also ultra-high-voltage direct current (HVDC), STATCOM (static synchronous compensators), and energy storage systems (ESS)—we will become one of the global top three companies within five years."

Chairman Cho has been intensifying the company's focus on data center and power infrastructure businesses to prepare for the AI era. He has repeatedly emphasized, "No matter how many data centers you build, they are useless without a stable power supply. The AI data center business must become a major driver of future growth for the group."

Hyosung Heavy Industries is also strengthening its supply chain competitiveness by centering production at its U.S. manufacturing base. The company's Memphis, Tennessee ultra-high voltage transformer plant, which was acquired in 2020, is currently undergoing expansion. Once this expansion is complete, the facility will possess the largest ultra-high voltage transformer production capacity in the United States, according to the company.

In July, the company established a joint venture for ultra-high voltage circuit breakers with North America-based energy infrastructure firm Quanta, creating a local production system for circuit breakers in addition to transformers.

Earlier this month, Hyosung Heavy Industries created a specialized data center business unit that consolidates engineering talent for both power equipment—such as transformers and circuit breakers—and stabilization solutions like ESS, microgrids, and STATCOM.

The United States, the world's largest electricity market, is seeing increased AI data center investment, particularly by big tech firms. According to Goldman Sachs, demand for power from U.S. data centers is expected to increase by an annual average of 15 percent through 2030, with about 50 billion U.S. dollars (66 trillion won) projected to be invested in related power infrastructure.

Since the early 2010s, Hyosung Heavy Industries has maintained the top market share in the U.S. 765kV ultra-high voltage transformer segment and has supplied roughly half of all 765kV ultra-high voltage transformers currently installed in the U.S. power grid.

As of August this year, Hyosung Heavy Industries' new orders totaled approximately 9.3 trillion won, surpassing its total order volume for the whole of last year. The company's annual order target has also been raised from the previous 8.4 trillion won to 12 trillion won.

This content was produced with the assistance of AI translation services.