Hyosung Heavy Industries secures $286 million contract for transformer equipment to power gigawatt-scale AI datacenter deployments across US grid
Hyosung Heavy Industries has secured 386.5 billion won ($286 million) in orders from two major US technology companies for extra-high-voltage transformers destined for new AI data center facilities in the southern and northern United States. The contracts comprise 220 billion won for 765-kilovolt units and 166.5 billion won for 345-kV transformers, announced Tuesday.
The deals reflect accelerating infrastructure investment as rapid AI data center construction strains US power grids. Goldman Sachs projects US data center electricity demand will grow at an annual average of 15 percent through 2030, driving approximately $50 billion in new power infrastructure investment.
Hyosung Heavy Industries is strategically positioning itself to capture this demand. In July, the company established a joint venture with North American energy infrastructure firm Quanta Services to manufacture extra-high-voltage circuit breakers in the United States, expanding its domestic production capabilities beyond transformers. Earlier this month, Hyosung formed a dedicated data center business team integrating specialists in transformers, circuit breakers, energy storage systems, microgrids, and static synchronous compensators (STATCOMs) to provide comprehensive power infrastructure solutions to global data center operators.
The expansion is driving significant order growth. Through August, Hyosung has secured approximately 9.3 trillion won in new orders—already surpassing its total for all of 2025—prompting the company to raise its annual order target from 8.4 trillion won to 12 trillion won.
Hyosung has held a commanding position in the US 765-kV transformer market since the early 2010s, supplying roughly half of the units currently installed on the country's transmission grid. Its broader portfolio encompasses circuit breakers ranging from 72.5 kV to 800 kV and grid-stabilization equipment including STATCOMs.
The company is expanding its transformer manufacturing plant in Memphis, Tennessee, which it acquired in 2020, to support anticipated growth from both data center operators and utilities.
"Demand for power infrastructure is surging in the AI era, creating a supercycle unseen in 60 years," said Chair Cho Hyun-joon. "Drawing on our total-solution capabilities across transformers, circuit breakers, high-voltage direct current systems, STATCOMs and energy storage systems, we aim to make Hyosung Heavy Industries one of the world's top three players within five years."