Hyundai Engineering & Construction has established a Japanese corporation to tap into the local advanced-industry infrastructure market, which is growing rapidly on the back of an artificial intelligence (AI) boom. The company plans to first enter the AI data center (AIDC) market before expanding its business into energy infrastructure such as nuclear power and small modular reactors (SMR).
According to the construction industry Monday, Hyundai E&C plans to apply for a special construction license in Tokyo in the third quarter of this year. After establishing its Japanese corporation, "Hyundai E&C Japan," in February in Marunouchi, Tokyo's central business district, the company completed the hiring of a management responsibility officer and a first-class Japanese architect, both essential requirements for the license, and is now undergoing internal headquarters approval procedures. Hyundai E&C had previously operated a Tokyo office and cooperated with local construction firms, but this marks the first time it is pursuing a Japanese construction license to win large-scale projects.
"We plan to first build an organization centered on essential personnel such as a management responsibility officer and a first-class architect, then gradually expand local staff in line with business growth," a Hyundai E&C official said. "We will actively seek business opportunities not only in AIDC, where demand is increasing rapidly, but also in energy infrastructure fields such as nuclear power and SMR."
Hyundai E&C is entering the Japanese market because demand for infrastructure to support advanced industries such as AIDC is rising quickly, while local construction capacity to meet it is insufficient. According to market research firm Mordor Intelligence, Japan's data center construction market is projected to grow from $7.59 billion this year to $10.9 billion by 2032.
