Local manufacturing and integrated power solutions emerge as key growth pillars
Hyosung Heavy Industries is accelerating its expansion in the U.S. power infrastructure market as the rapid buildout of artificial intelligence data centers drives demand for high-voltage equipment.
The Korean power equipment maker said Tuesday that it has secured a combined 386.5 billion won ($270 million) in contracts this month to supply ultra-high-voltage transformers to two U.S. Big Tech companies.
The orders include 220 billion won worth of 765-kilovolt transformers and 166.5 billion won worth of 345-kilovolt transformers. The equipment will be deployed at new AI data centers being developed in the northern and southern parts of the United States. Hyosung did not disclose the customers or detailed delivery schedules.
The latest contracts highlight the growing importance of power infrastructure in the AI industry. As hyperscale data centers require increasingly large amounts of electricity, securing reliable transmission capacity and maintaining power quality have become critical to the expansion of AI computing infrastructure.
Hyosung is positioning itself to benefit from this trend by moving beyond individual equipment sales and developing integrated solutions tailored to data center operators.
The company recently established a dedicated data center business team by bringing together engineers specializing in transformers, circuit breakers, energy storage systems, microgrids and STATCOMs, which are used to stabilize voltage in power grids.
Industry observers say the move reflects a broader shift in the data center power market. With operators seeking faster construction and highly reliable electricity supplies, suppliers are increasingly expected to provide not only individual power equipment but also engineering capabilities and systems that can stabilize and manage power throughout a facility.
Hyosung is also strengthening its U.S. manufacturing footprint. Its Memphis, Tennessee, plant, acquired in 2020, is undergoing expansion. Once completed, the facility is expected to have one of the largest ultra-high-voltage transformer production capacities in the U.S.
Local production could give Hyosung an additional advantage as American utilities and infrastructure developers increasingly emphasize resilient supply chains and faster equipment delivery. Manufacturing closer to customers can also help the company respond more flexibly to large-scale grid projects.
The company is expanding its local presence beyond transformers as well. In July, Hyosung Heavy Industries established a joint venture with North American energy infrastructure company Quanta to manufacture ultra-high-voltage circuit breakers.
The strategy is designed to broaden Hyosung's product portfolio in the U.S. and allow it to offer transformers and circuit breakers as part of a more comprehensive power infrastructure package.
Hyosung's growing focus on North America comes amid a sharp increase in orders. The company had accumulated approximately 9.3 trillion won in new orders by August, already exceeding its full-year order intake in 2025.
It subsequently raised its 2026 annual order target to 12 trillion won from the previous 8.4 trillion won.
The company has also strengthened its track record in the U.S. ultra-high-voltage market. Hyosung has supplied a significant portion of the 765-kV transformers installed on the U.S. transmission grid, giving it experience with some of the country's most demanding power infrastructure projects.
That installed base is expected to become an important competitive advantage as utilities and data center developers seek suppliers with proven experience in handling large-scale transmission equipment.
The market outlook is also expanding beyond data center construction itself. The surge in electricity demand is expected to create additional investment in transmission networks, grid modernization and voltage stabilization equipment.
Hyosung is therefore broadening its business portfolio into high-voltage direct current transmission, STATCOMs, energy storage systems and microgrids. The aim is to establish a business model capable of addressing a wider range of power infrastructure needs rather than relying solely on transformer sales.
Industry analysts expect the combination of AI-related electricity demand, aging U.S. grid infrastructure and new generation capacity to sustain investment in high-voltage equipment over the medium to long term.
For Hyosung, the challenge will be to convert the current order momentum into sustained growth while expanding production capacity and maintaining delivery competitiveness in a market where global power equipment manufacturers are competing aggressively.
