Hyosung Heavy targets global top three amid U.S. AI power boom

Big Tech companies this month, capitalizing on surging artificial intelligence data center demand.

The equipment deals comprise 220 billion won in orders for 765-kilovolt transformers and 166.5 billion won for 345-kilovolt units destined for newly built AI data centers under construction in the northern and southern United States. The transactions arrive as the manufacturer strengthens its position as a key power infrastructure supplier amid the rapid expansion of artificial intelligence data centers. The equipment will supply electricity to power-intensive data center facilities.

Chairman Cho Hyun-joon Defines the AI Power Equipment Supercycle

Hyosung Chairman Cho Hyun-joon has described the surge in demand for power infrastructure as a once-in-60-years supercycle driven by AI. The latest deals reflect Hyosung Chairman Cho Hyun-joon’s yearslong efforts to establish a local production and solutions network in the U.S.

As demand for power infrastructure surges in the AI era, we are entering a supercycle not seen in 60 years, Chairman Cho said. “Drawing on our competitiveness in total solutions—including transformers and circuit breakers, as well as power stabilization systems such as high-voltage direct current transmission, STATCOM and energy storage systems—we will establish Hyosung Heavy Industries as one of the world’s top three companies in the sector within five years.”

Chairman Cho has set a goal of making Hyosung Heavy Industries one of the world’s top three power equipment companies within five years by offering a broad portfolio ranging from transformers and circuit breakers to high-voltage direct current systems, static synchronous compensators and energy storage systems. Cho has focused on developing the group’s data center and power infrastructure businesses in preparation for the AI era, recognizing that global data center operators increasingly require partners capable of securing reliable power supplies and rapidly deploying the necessary infrastructure. No matter how many data centers are built, they serve no purpose without a reliable power supply, Chairman Cho has emphasized. We must develop the AI data center business—which brings together Hyosung’s unrivaled capabilities—into a future growth engine for the group.

Driven by the expansion of AI and data centers, power infrastructure has become a core industry directly linked to national security, Hyosung Group Chairman Cho Hyun-joon said. Building on our US manufacturing facilities and technological capabilities, we must establish ourselves as an irreplaceable, long-term partner in stabilizing the American power grid.

Expanding U.S. Manufacturing Infrastructure in Tennessee and Pennsylvania

To support its expanding order pipeline and US expansion, Hyosung has invested $300 million in enlarging its ultra-high-voltage transformer plant in Memphis, Tennessee. The company plans to combine this local production base with its portfolio of SSTs, energy storage systems, static synchronous compensators and high-voltage direct-current transmission technologies to target the growing data center power market. The ultra-high-voltage transformer plant in Memphis, Tennessee, which Hyosung Heavy Industries acquired in 2020, serves as a key production hub for its expansion across the North American market. The company has also formed a joint venture in July with US infrastructure company Quanta Services, a major North American energy infrastructure company, to manufacture circuit breakers ranging from 72.5 kV to 800 kV in Pennsylvania. The venture gives Hyosung local manufacturing capabilities for both transformers and circuit breakers. Quanta’s nationwide operations and customer network are expected to help Hyosung reach major power users and broaden its access to the US infrastructure market. The move expands the Korean company’s U.S. manufacturing capabilities beyond transformers and strengthens its ability to provide integrated power infrastructure solutions.

Hyosung Heavy Industries secures $277 mil. in US Big Tech orders amid AI data center boom - The Korea Times — Photo: koreatimes.co.kr

Deploying Solid-State Transformers and a Dedicated Business Team

Technology innovation remains central to the firm’s push into data center infrastructure. At the center of Hyosung’s technology strategy is the solid-state transformer, or SST, which the company sees as a key component of power systems in the AI era. In 2022, Hyosung developed a 22.9-kilovolt, 1.05-megavolt-ampere SST that connects directly to urban distribution networks. Unlike conventional transformers, SSTs use power semiconductors to control voltage and current while providing electrical insulation.

Hyosung Heavy Industries' ARMOUR⁺ Platform for Intelligent Power Grid

The global SST market is projected to grow by more than 40 percent annually as power infrastructure is modernized, according to market research firms. The market for high-capacity SSTs serving data centers at 22.9 kV and above remains at an early stage, with only a handful of companies pursuing demonstrations and commercialization. Hyosung seeks an early foothold as data centers demand larger, more flexible and more efficient power systems.

Earlier this month, the company established a dedicated Data Center Business Team, bringing together engineers specializing in transformers, circuit breakers, energy storage systems, microgrids and static synchronous compensators. The team aims to position Hyosung Heavy Industries as a one-stop power infrastructure partner for global data center operators seeking reliable electricity supplies and faster construction.

Market Projections and U.S. Infrastructure Demand

Rising power demand and aging grid infrastructure are driving major investments in the US power network. According to Goldman Sachs, U.S. data center power demand is projected to grow by an average of 15 percent annually through 2030, requiring an estimated $50 billion in new power infrastructure investment. Hyosung Heavy Industries has held the No. 1 position in the U.S. 765-kV transformer market, underpinning its ongoing commercial expansion.