HD Hyundai Electric will present its outlook on the transformer market, which is shifting due to the expansion of artificial intelligence (AI) data centers, along with strategies to respond to these changes.
At the third-day conference of “Smart Energy Plus (SEP) 2026,” scheduled for the 30th at Hall B of COEX in Seoul Samsung-dong, Ok Kyung-seok, Senior Vice President and Head of Overseas Sales for Power Equipment at HD Hyundai Electric, will deliver a presentation on the topic of “AI Data Centers and Increasing Transformer Demand.”
In a pre-interview with Money Today, SVP Ok stated, “Looking at recent order trends, we are approaching the most optimistic scenario among the forecasts released by various global market research institutional investors,” adding, “Current transformer demand will not merely be a ‘super cycle’ but will establish itself as a ‘new normal.’” SVP Ok cited the expansion of renewable energy as a key factor driving transformer demand. He explained that because renewable energy sources such as solar and wind have high variability in power generation, more transformers are needed to ensure stable electricity supply. SVP Ok added, “On top of this, AI data centers and replacement demand for aging equipment have fueled the fire.”
To respond to growing transformer demand centered on the North American market, HD Hyundai Electric is expanding production capacity and strengthening its sales strategy. Notably, the company will complete an expansion of its Ulsan plant in the fourth quarter this year and begin operating a second factory at its Alabama, U.S. subsidiary in the first half of next year to boost production capacity for its flagship product, ultra-high-voltage transformers. Once the Alabama plant expansion is completed, local transformer production capacity is expected to increase by 50% compared to before. HD Hyundai Electric’s revenue from the North American market increased from 1 trillion won in 2024 to 1.6 trillion won last year, and surpassed 1 trillion won in the first half of this year alone.
In this context, SVP Ok plans to share market conditions and future outlooks gained from direct meetings with AI data center customers. With global big tech companies announcing large-scale investments through 2030, the presentation is expected to examine the impact of the AI data center market’s growth on transformer demand. SVP Ok observed, “Companies like Meta and Oracle have invested more than their operating profit in AI data centers so far, but starting next year, even more companies will increase their investments.”
The company will also introduce HD Hyundai Electric’s strategy for securing competitiveness in the global market. It plans to share how it has secured global customers and expanded relationships not only through product competitiveness but also on the sales front.
Meanwhile, “SEP 2026” is an event co-hosted by Money Today and COEX and organized by the National Assembly Hydrogen Economy Forum, taking place from the 28th to the 30th at Hall B of COEX. LG Group, HD Hyundai Electric, Doosan Enerbility, Hyundai Rotem, Unison, the Army, Seoul City, and the Korea Atomic Energy Research Institute, among others, will set up booths to exhibit energy security strategies for the AI era. The electric vehicle and hydrogen vehicle strategies of Hyundai Motor, along with BMW, Mercedes-Benz, Audi, Porsche, and Polestar, can also be reviewed.
For the conference, senior executives from the Army’s “Energy Policy Forum,” Samsung Electronics, SK Hynix, Hyundai Motor, LG Electronics, POSCO Holdings, Bright Energy Partners, LG Energy Solution, Samsung SDI, SK On, OCI Power, and HD Hyundai Electric are scheduled to take the stage.
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