Hyosung Heavy Industries announced on the 15th that it has signed a total supply contract for ultra-high-voltage transformers worth 386.5 billion won with two leading U.S. tech companies.
The ultra-high-voltage transformers secured in this order will be deployed at new artificial intelligence (AI) data centers under construction in the southern and northern regions of the United States. They consist of a 2,200-billion-won 765kV (kilovolt) ultra-high-voltage transformer and a 1,665-billion-won 345kV ultra-high-voltage transformer.
The United States, the world's largest power market, has recently seen a significant expansion in AI data center investments centered around big tech companies. According to Goldman Sachs, U.S. data center power demand is projected to grow at an annual average rate of 15% through 2030. To support this, approximately $50 billion (about 66 trillion won) is expected to be invested in new power infrastructure.
Hyosung Heavy Industries has held the number one market share in the U.S. 765kV ultra-high-voltage transformer market since the early 2010s, supplying nearly half of all 765kV ultra-high-voltage transformers installed on the U.S. transmission grid. It also possesses a LINE lineup capable of supplying equipment ranging from 72.5kV to 800kV ultra-high-voltage circuit breakers. Additionally, orders for STATCOM (Static Var Compensator), a power stabilization facility, have increased significantly, and the company aims to play a key role in the AI data center power infrastructure market.
Chairman Cho Hyun-jun of Hyosung Heavy Industries has been preparing for changes in the power market landscape driven by AI. "Based on our 'total solution' competitiveness covering not only transformers and circuit breakers but also ultra-high-voltage direct current transmission (HVDC), STATCOM, and energy storage systems (ESS), we aim to elevate Hyosung Heavy Industries to the global top three within five years," he stated.
In fact, the U.S. Tennessee ultra-high-voltage transformer plant acquired by Hyosung Heavy Industries in 2020 has become a key base for leading the local supply chain. Once the ongoing expansion of the Memphis plant is completed, it will possess the largest ultra-high-voltage transformer production capacity in the United States. In July last year, the company established a joint venture with North American energy infrastructure solutions firm Quant to produce circuit breakers locally, complementing its existing transformer production system.
Earlier this month, Hyosung Heavy Industries also established a new "Data Center Business Team" that consolidated personnel responsible for designing power facilities such as transformers and circuit breakers, along with stabilization solutions including ESS, microgrids, and STATCOM, into a single organization. As of last month, the company's new orders totaled approximately 930 billion won, surpassing its full-year order volume from the previous year. Consequently, the annual order target has been raised from the existing 840 billion won to 1.2 trillion won.
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