HD Hyundai Electric Signs $1.1 Billion Supply Deal with Big Tech for North American Data Centers

HD Hyundai Electric's distribution transformer (left) and power transformer (right) supplied to global big tech companies [Photo=HD Hyundai Electric]

HD Hyundai Electric is accelerating its entry into the North American data center power infrastructure market after signing a supply contract with a global big tech company.

On July 2, HD Hyundai Electric announced that it has entered into a basic contract for a long-term supply of distribution and power equipment worth up to 1.1212 trillion won (approximately $1.1 billion). The contract includes 553.9 billion won for distribution equipment and 567.3 billion won for power equipment.

Deliveries will be made in phases according to the construction schedule of the data centers. HD Hyundai Electric plans to supply related products to the data centers being built by its client in North America by 2028.

Under this contract, HD Hyundai Electric will provide a package of distribution and power equipment essential for the operation of large-scale data centers. Supplying both types of equipment together enhances the design consistency of the overall power infrastructure and reduces risks that may arise during the management of delivery, quality, and after-sales service.

Demand for data center power infrastructure is rapidly increasing, particularly in North America. The International Energy Agency (IEA) projects that global data center power consumption will more than double from 415 terawatt-hours (TWh) in 2024 to 945 TWh by 2030.

In the United States, data centers are expected to account for about half of the increase in total power demand by 2030. As large data centers continue to be constructed, the importance of stable power supply infrastructure is becoming increasingly critical.

An HD Hyundai Electric official stated, "This contract reflects our ability to meet the stringent quality standards of global big tech companies for data centers and recognizes the competitiveness of our distribution and power equipment. We will continue to expand our customer-tailored package supply across various product lines to strengthen our position in the data center power infrastructure market."

Additionally, Lee Chang-ho, Vice President of HD Hyundai Electric, mentioned in a recent meeting with reporters that, "Until last year, the revenue share from data center projects was less than 10%. This year, we expect it to rise to double digits, reaching between 15% and 20%."

* This article has been translated by AI.