HD Construction Machinery is accelerating its expansion in the engine business by participating in the power supply sector for data centers.
On October 7, the company announced that it has signed a supply contract for gas power engine long blocks with U.S. power infrastructure solutions provider ERock. The two-year contract, covering 2027 to 2028, is valued at approximately 390 billion won.
The supplied product is a 22-liter high-efficiency gas power engine long block, which is a semi-finished engine body excluding the fuel and ignition systems. The customer will use this product to establish generator set solutions that provide stable power to hyper-scale data centers of major U.S. tech companies.
This order is significant as it marks HD Construction Machinery's establishment in the rapidly growing North American data center market, driven by the AI boom, with a large-scale supply contract for continuous power engine long blocks. Analysts note that the demand for continuous power has surged due to delays in grid connections for data centers, highlighting the company's engine technology and reliability for long-term operation.
Starting with this order, HD Construction Machinery plans to actively target the power engine market for data centers. The company is set to establish a production system for ultra-large power engines ranging from 1 to 3 MW at its new Gunsan engine factory, which is scheduled to be completed by the end of this month. It plans to sequentially launch 37-liter (1.5 MW) engines in 2027 and 77-liter (3 MW) engines in 2028 to meet the demand for high-output power engines.
According to global market research firm Dell'Oro Group, global capital expenditure (CAPEX) for data center facilities is expected to exceed $3 trillion (approximately 4,000 trillion won) by 2030.
In this context, Fortune Business Insights projects that the global data center generator market will grow from $10.34 billion (approximately 14 trillion won) in 2026 to $19.72 billion (approximately 27 trillion won) by 2034, with an average annual growth rate of 8.4%.
An HD Construction Machinery official stated, "This order is a significant achievement that recognizes our engine technology in the new growth area of the data center power market, and we will expand our presence in the global data center and distributed power markets going forward."
* This article has been translated by AI.
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