Hyosung receives US transformer orders for AI data centers
South Korea’s Hyosung Heavy Industries has received orders from two major US technology companies for ultra-high-voltage transformers worth a combined 386.5 billion won, or $286 million. The equipment is intended for new artificial intelligence data centers in the southern and northern United States, Korea Herald reports.
Contracts for data centers
The contracts provide for the supply of 765-kV transformers worth 220 billion won and 345-kV transformers worth 166.5 billion won. The company announced the agreements on Tuesday.
Hyosung Heavy Industries is expanding its presence in the United States amid active construction of AI data centers, which is placing additional strain on power grids and spurring investment in power transmission and distribution equipment. Citing Goldman Sachs, the company said that US data center electricity demand will grow by an average of 15% annually through 2030, requiring about $50 billion in new investment in energy infrastructure.
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Production and new orders
In July, Hyosung Heavy Industries established a joint venture with North American energy infrastructure company Quanta to manufacture ultra-high-voltage circuit breakers in the United States. In early September, the company also formed a separate team for working with data centers, including specialists in transformers, circuit breakers, energy storage systems, microgrids and STATCOM.
Hyosung Heavy Industries’ new orders from January through August reached approximately 9.3 trillion won, exceeding the result for all of 2025. The company subsequently raised its annual order target from 8.4 trillion won to 12 trillion won. It is also expanding its transformer plant in Memphis, Tennessee, which it acquired in 2020.
Hyosung Group Chairman Cho Hyun-joon said that demand for energy infrastructure in the AI era is creating an unprecedented supercycle not seen in 60 years. According to him, the company aims to enter the global top three industry players within five years.
