Hyosung Heavy Industries announced on the 15th that it has signed a total $2.9 billion ultra-high-voltage transformer supply contract with two leading U.S. big tech (large IT) companies. The newly secured ultra-high-voltage transformers will be deployed at new AI (artificial intelligence) data centers under construction in the southern and northern regions of the United States. These include 765kV (kilovolt) ultra-high-voltage transformers worth $1.6 billion each and a 345kV ultra-high-voltage transformer valued at $1.2 billion.
The United States, the world's largest power market, has recently seen 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. Approximately $50 billion (about 66 trillion won) is expected to be invested in new power infrastructure to support this growth.
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. The company 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, positioning the company as a key player in the AI data center power infrastructure market.
Chairman Cho Hyun-jun of Hyosung has been preparing for shifts in the power market landscape driven by AI. Jo (Chairman) stated, "Based on our 'total solution' competitiveness covering not only transformers and circuit breakers but also HVDC (high-voltage direct current transmission), STATCOM, and ESS (energy storage systems), we aim to elevate Hyosung Heavy Industries to the global top three within five years."
In fact, the ultra-high-voltage transformer plant in Tennessee, U.S., acquired by Hyosung Heavy Industries in 2020, has become a key base for leading local supply chains. 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 Quanta 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. The total value of new orders secured by Hyosung Heavy Industries through last month reached approximately $7 billion, surpassing its annual order volume from the previous year.
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