Hyosung Chairman Cho Hyun-Joon is positioning the company to capture U.S. AI grid demand by deploying 22.9kV solid-state transformers for high-density data center substations.
With the advent of the artificial intelligence era, optimizing power supply networks has emerged as a critical global challenge. In the United States, surging power demand driven by the proliferation of AI and data centers, combined with the urgent need to replace aging grid infrastructure, is fueling large-scale investment in power systems. Anticipating these transformative shifts, Hyosung Heavy Industries Chairman Hyun-Joon Cho has spearheaded proactive investments to meet the demands of the AI and data center era. These strategic commitments are now strengthening the company’s position in the U.S. AI and data center power market.
“Driven by the expansion of AI and data centers, power infrastructure has now become a core industry directly linked to national security,” stated Chairman Cho. “Building on Hyosung Heavy Industries’ U.S. manufacturing facilities and technological prowess, we must establish ourselves as an irreplaceable, essential long-term partner in stabilizing the American power grid.” To capitalize on this opportunity, Hyosung Heavy Industries plans to accelerate its entry into the U.S. AI data center power market by integrating next-generation grid technologies with its domestic manufacturing footprint and established expertise in ultra-high-voltage transformers and circuit breakers.
Recognizing the Solid State Transformer (SST) as indispensable for AI-era power transmission and distribution, Hyosung Heavy Industries initiated preemptive research and development. In 2022, the company successfully developed the world’s first 22.9kV 1.05MVA-class SST, engineered for direct connection to urban distribution networks. This milestone secured a competitive advantage in next-generation power conversion technology and positioned the company to capture emerging market opportunities. SSTs utilize power semiconductors to precisely control voltage and current while maintaining the insulation functions of conventional transformers. This field presents high technological barriers, requiring sophisticated power control capabilities. According to global market research firms, the worldwide SST market is projected to expand at an average annual rate exceeding 40%, driven by power infrastructure modernization. The large-capacity SST segment for data centers operating at 22.9kV and above remains in its nascent stages, with only a handful of companies globally pursuing commercialization and demonstration projects. Capitalizing on this early-stage landscape, Hyosung Heavy Industries intends to accelerate efforts to secure an early-mover advantage through its advanced technology.
Hyosung Heavy Industries is simultaneously scaling its U.S. manufacturing operations. The company has invested a total of USD 300 million in the acquisition and expansion of its ultra-high-voltage transformer facility in Memphis, Tennessee. Upon completion of the ongoing expansion, Hyosung will command one of the largest ultra-high-voltage transformer production capacities in the United States. Additionally, the company has formed a joint venture with Quanta Services, a leading North American energy infrastructure solutions provider, to manufacture 72.5kV to 800kV ultra-high-voltage circuit breakers locally in Pennsylvania. Through this initiative, Hyosung becomes the first Korean power equipment manufacturer to establish local production capabilities for both ultra-high-voltage transformers and circuit breakers within the U.S. market.
Quanta maintains an extensive business presence and customer network across the United States, delivering infrastructure solutions for large-scale power demand facilities. By leveraging Quanta’s industry-leading infrastructure capabilities alongside Hyosung’s world-class technological expertise, the company aims to significantly strengthen its competitive edge. Hyosung Heavy Industries seeks to establish itself as a pivotal player in the data center power infrastructure market by integrating its accumulated technological proficiency, robust U.S. local production base, and next-generation power grid technologies, including SSTs, Energy Storage Systems (ESS), STATCOM, and High Voltage Direct Current (HVDC) systems.
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