The South Korean government is stepping up support for local power equipment companies to localize production in the rapidly growing U.S. market, driven by increased investment in power infrastructure due to the expansion of artificial intelligence (AI) data centers. Lee Ho-yeon, the Deputy Minister of the Climate Energy Environment Ministry, visited Hyosung Heavy Industries' U.S. high-voltage circuit breaker production facility to assess investment and local production status.
The Climate Energy Environment Ministry announced on September 17 that Deputy Minister Lee visited the joint venture 'HYOSUNG HICO BREAKER' located in Canonsburg, Pennsylvania, on September 16 (local time).
This visit was organized to review the status of domestic power equipment companies' investments and localization efforts in the U.S. amid growing investments in power infrastructure driven by the growth of the AI industry, the expansion of large-scale data centers, the replacement of aging power grids, and the integration of renewable energy.
According to Goldman Sachs, the power demand from U.S. data centers is expected to grow by an average of 15% annually through 2030, with approximately $50 billion projected to be invested in new power infrastructure to support this demand.
In response to this increasing demand for power infrastructure, Hyosung Heavy Industries is also expanding its local production capacity. The joint venture visited by the Deputy Minister was established in July in collaboration with Quanta Services, a U.S. power and energy infrastructure company, and is set to begin full-scale production of high-voltage circuit breakers in October.
Hyosung Heavy Industries has been expanding its local production capacity through its high-voltage transformer plant in Memphis, Tennessee, acquired in 2020. With the operation of this high-voltage circuit breaker production facility, the company will have the capability to produce all essential equipment for transmission and distribution power networks locally in the U.S.
Since establishing its U.S. subsidiary in 2001, Hyosung Heavy Industries has continuously increased its local investments, securing approximately 1 trillion won in orders for 765kV high-voltage transformers this year.
The government plans to continue providing policy support to help domestic power equipment companies expand their local production and supply chains in the U.S.
Deputy Minister Lee stated, "Hyosung Heavy Industries' proactive investment and local production network contribute to enhancing the stability of the U.S. power grid and serve as an excellent model for cooperation in the energy and power equipment sectors between South Korea and the U.S. We will spare no policy support to ensure our companies can establish stable supply chains and expand their market dominance in the U.S."
* This article has been translated by AI.
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