Hyosung Heavy Industries secures $277 million in transformer orders from US Big Tech firms for AI data center deployment, signaling power infrastructure constraint.
South Korea’s Hyosung Heavy Industries has secured orders from two major U.S. technology companies for ultra-high-voltage transformers valued at a combined 386.5 billion won ($286 million). According to the Korea Herald, the equipment will be deployed at new artificial intelligence data centers in the southern and northern United States. The company announced the agreements on Tuesday.
The contracts specify the supply of 765-kV transformers worth 220 billion won and 345-kV transformers worth 166.5 billion won. Hyosung Heavy Industries is expanding its U.S. footprint as the rapid construction of AI data centers places additional strain on regional power grids and drives investment in transmission and distribution equipment. Citing Goldman Sachs, the company noted that U.S. data center electricity demand is projected to grow by an average of 15 percent annually through 2030, necessitating approximately $50 billion in new energy infrastructure investment.
In July, Hyosung Heavy Industries established a joint venture with North American energy infrastructure firm Quanta to manufacture ultra-high-voltage circuit breakers in the United States. By early September, the company had also launched a dedicated data center division, assembling specialists across transformers, circuit breakers, energy storage systems, microgrids, and STATCOM technology.
From January through August, Hyosung Heavy Industries’ new orders totaled approximately 9.3 trillion won, surpassing its full-year 2025 results. Consequently, the company raised its annual order target from 8.4 trillion won to 12 trillion won. It is simultaneously expanding its transformer manufacturing facility in Memphis, Tennessee, which it acquired in 2020.
Hyosung Group Chairman Cho Hyun-joon stated that demand for energy infrastructure in the AI era is creating “an unprecedented supercycle not seen in 60 years.” He added that the company aims to rank among the top three global industry players within five years.