Hyosung Heavy Industries has secured contracts worth 386.5 billion won (approximately $286 million) for high-voltage transformers from major U.S. tech companies in September alone. This achievement is seen as a significant result of Chairman Cho Hyun-joon's years of effort in establishing a local production and solution system in the U.S.
On September 15, Hyosung Heavy Industries announced that it had signed contracts for high-voltage transformers totaling 386.5 billion won with two prominent U.S. tech firms. The transformers will be used in new AI data centers being built in the northern and southern regions of the United States, including a 765kV transformer worth 220 billion won and a 345kV transformer worth 166.5 billion won, both of which will supply substantial power to the data centers.
This contract reflects Hyosung Heavy Industries' established reputation for product reliability, positioning the company as a key partner in the local power infrastructure market, particularly among tech giants.
Chairman Cho emphasized the importance of being prepared for the changes in the power market driven by AI. He stated, "With the advent of the AI era, the demand for power infrastructure is exploding, marking the arrival of a supercycle not seen in 60 years. Based on our total solution competitiveness, which includes transformers, circuit breakers, HVDC, STATCOM, and ESS, we aim to elevate our company to the global top three within five years."
In anticipation of the AI era, Cho has focused on developing the data center and power infrastructure business. He noted that global data center operators, especially big tech companies, are seeking partners who can ensure stable power supply and rapid construction.
"No matter how many data centers are built, they are useless without power supply," Cho said. "We must develop Hyosung's overwhelming capabilities in the AI data center business as a key driver of the group's future growth."
Previously, the high-voltage transformer plant in Tennessee, acquired by Hyosung Heavy Industries in 2020, has become a crucial base for leading the local supply chain. Once the ongoing expansion at the Memphis plant is completed, it will possess the largest high-voltage transformer production capacity in the U.S.
The U.S., the largest power market globally, has seen a significant increase in investments in AI data centers, particularly among big tech companies. According to global investment bank Goldman Sachs, the power demand for data centers in the U.S. is expected to grow at an average annual rate of 15% until 2030, with approximately $50 billion (about 66 trillion won) projected to be invested in new power infrastructure to support this growth.
Since the early 2010s, Hyosung Heavy Industries has maintained the top market share in the U.S. 765kV high-voltage transformer market, supplying nearly half of the 765kV transformers installed in the U.S. transmission network.
As of August, Hyosung Heavy Industries' new order amount reached approximately 9.3 trillion won, surpassing last year's total annual orders. The annual order target has also been raised from 8.4 trillion won to 12 trillion won.
* This article has been translated by AI.
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