Hyosung expands energy equipment production in the US amid AI growth
South Korea’s Hyosung Heavy Industries is expanding its energy infrastructure business in the United States amid growing demand associated with the development of artificial intelligence and data centers. The company combines local manufacturing with energy equipment and power grid technologies, Korea Herald reports.
Growing electricity demand and aging grid infrastructure are driving significant investment in US power grids. One of the key areas of Hyosung’s technology strategy is the solid-state transformer, or SST, which the company considers an important component of power systems in the AI era.
Solid-state transformers
In 2022, Hyosung developed an SST with a voltage of 22.9 kilovolts and a capacity of 1.05 megavolt-amperes. The device can connect directly to urban distribution networks. Unlike conventional transformers, SSTs use power semiconductors to control voltage and current while providing electrical isolation.
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According to estimates by research firms, the global SST market could grow by more than 40% annually as energy infrastructure is modernized. The segment of high-power solid-state transformers for data centers with voltages starting at 22.9 kilovolts remains at an early stage: only a few companies are conducting demonstrations and working on commercializing the technology.
Capacity in the US
For its expansion in the United States, Hyosung invested $300 million to increase the capacity of its ultra-high-voltage transformer plant in Memphis, Tennessee. Once the work is completed, the facility is expected to have one of the country’s largest production capacities of this type.
The company has also established a joint venture with US infrastructure company Quanta Services to manufacture circuit breakers rated from 72.5 to 800 kilovolts in Pennsylvania. Hyosung plans to combine local manufacturing with a portfolio of SSTs, energy storage systems, static synchronous compensators, and high-voltage direct current transmission technologies to operate in the data center power supply market.
