Hyosung Heavy Industries (298040.KS) has won contracts worth nearly 400 billion won to supply extra-high-voltage transformers to two U.S. technology giants. With power infrastructure demand surging on a wave of artificial intelligence data center construction, the company aims to break into the global top three within five years.
Hyosung Heavy Industries said on the 15th that it had signed contracts worth a combined 386.5 billion won ($278 million) with two U.S. big tech firms to supply extra-high-voltage transformers. The equipment will be installed at AI data centers under construction in the southern and northern United States. The orders comprise 765-kilovolt transformers worth 220 billion won and 345-kilovolt transformers worth 166.5 billion won.
In the United States, the world's largest power market, big tech companies have been expanding investment in AI data centers. According to Goldman Sachs, U.S. data center power demand will grow an average of 15% a year through 2030, and about $50 billion in new power infrastructure investment is expected to support that growth.
Hyosung Heavy Industries has held the top market share in the U.S. 765-kilovolt extra-high-voltage transformer market since the early 2010s. About half of the 765-kilovolt transformers currently installed on the U.S. transmission grid are made by the company. Beyond transformers, it also supplies extra-high-voltage circuit breakers ranging from 72.5 to 800 kilovolts. Orders for STATCOM power stabilization equipment are also rising, which the company expects will allow it to play a central role in the AI data center power infrastructure market.
Cumulative new orders through last month reached about 9.3 trillion won, exceeding the company's full-year total for last year. Hyosung Heavy Industries has raised its annual order target to 12 trillion won from 8.4 trillion won.
The extra-high-voltage transformer plant in Memphis, Tennessee, which Hyosung Heavy Industries acquired in 2020, is a key driver of the large order wins. Once the expansion now underway is complete, the plant will have the largest extra-high-voltage transformer production capacity in the United States.
"With the AI era, an explosion in power infrastructure demand has brought a super cycle for the first time in 60 years," Hyosung Group Chairman Cho Hyun-joon said. "Based on our competitiveness in total solutions spanning transformers and circuit breakers as well as power stabilization systems such as high-voltage direct current transmission, STATCOM and energy storage systems, we will make Hyosung Heavy Industries a global top-three player within five years."
