Hyosung Heavy Industries Co. said Tuesday it has secured 386.5 billion won ($286.7 million) in power transformer deals with two U.S. technology companies as Hyosung Group Chairman Cho Hyun-joon step ups the group’s push into artificial intelligence (AI) infrastructure.
The Korean company will supply 765-kilovolt (kV) ultra-high-voltage transformers worth 220 billion won for an AI data center in the southern United States and 345-kV transformers worth 166.5 billion won for another facility in the northern part of the country.
The latest contracts come as Hyosung Group expands its power equipment business amid surging U.S. electricity demand driven by the rapid growth of AI data centers.
“With demand for power infrastructure surging in the AI era, the industry is entering a supercycle for the first time in 60 years,” Cho said in a release.
Cho said Hyosung aims to become one of the world’s top three players within five years by providing integrated power solutions ranging from transformers and circuit breakers to power stabilization systems, including high-voltage direct current (HVDC), static synchronous compensators (STATCOM) and energy storage systems (ESS).
Earlier this month, the company launched a dedicated team to consolidate its expertise in these areas.
Hyosung Heavy Industries is also strengthening its local production base to meet growing demand in North America, with an expansion of its transformer plant in Memphis, Tennessee, currently underway.
In July, Hyosung Heavy established a joint venture with North American energy infrastructure company Quanta to locally produce ultra-high-voltage circuit breakers.
Hyosung Heavy has maintained the No. 1 share of the U.S. 765-kV ultra-high-voltage transformer market since the early 2010s, supplying about half of such transformers installed on the U.S. power grid.
The company’s cumulative orders totaled about 9.3 trillion won in the first eight months of this year, already exceeding its full-year order last year. It has also raised its annual order target to 12 trillion won from 8.4 trillion won.
