HD Hyundai Heavy Industries has secured a contract worth 956 billion won ($956 million) to supply power equipment for data centers operated by major U.S. tech companies. As demand for power infrastructure surges due to the expansion of AI data centers, the company is enhancing its global presence with this record-breaking engine contract.
On August 10, HD Hyundai Heavy Industries announced that it has signed a supply contract with Corban Energy Group, a U.S. energy infrastructure development firm, for 9.6 MW HiMSEN engine-based power equipment. The total capacity of the contract is 1,000 megawatts (MW), and the equipment will be used as a power source for local tech companies' data centers.
Corban Energy Group specializes in providing gas, LNG, and power products for various infrastructure projects, including data center construction and Department of War (DoW) projects.
This contract marks the largest power engine supply agreement in the history of HD Hyundai Heavy Industries. Previously, in April, the company signed a contract worth 627.1 billion won for data center power equipment with AEG, another U.S. energy infrastructure firm.
The 9.6 MW HiMSEN engine being supplied is a large-capacity medium-speed engine known for its world-class power efficiency and reliability. Its high output and efficiency allow for 24-hour operation, giving it a competitive edge in the data center market.
The two companies plan to maintain a close partnership following this engine supply contract to expand their business collaboration further.
Recently, the U.S. data center power equipment market has been experiencing rapid growth, driven by the expansion of AI services and increased investment in cloud infrastructure. According to the Electric Power Research Institute (EPRI), the share of data center power consumption in the total U.S. electricity usage is expected to triple by 2030.
In response, HD Hyundai is continuing to expand its group-level initiatives. HD Korea Shipbuilding & Marine Engineering, the intermediate holding company for the shipbuilding sector, is focusing on developing core technologies for floating data centers, while HD Hyundai Electric and HD Hyundai Marine Solutions are increasing their supply of distribution and power equipment and expanding maintenance services for power engines to seize market opportunities.
An official from HD Hyundai Heavy Industries stated, "The ongoing inquiries for collaboration in the data center power engine market are evidence of the proven technology and reliability of the HiMSEN engine. We will seek various business opportunities to strengthen our position in the power equipment market."
Meanwhile, HD Hyundai is leveraging the capabilities of its group affiliates to target the data center power infrastructure market, connecting its strengths in shipbuilding, power equipment, and engine maintenance and repair (MRO). The company anticipates synergy effects from securing follow-up projects, including maintenance and power equipment supply, starting with the power equipment supply.
* This article has been translated by AI.
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