Hyosung Secures $287 Million U.S. AI Data-Center Orders
Hyosung Secures $287 Million U.S. AI Data-Center Orders
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Key Points
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The 345kV agreement was signed through Hyosung Heavy Industries’ U.S. affiliate, HICO America Sales & Tech, and is scheduled to run from September 14, 2026, through August 31, 2028. Payments will be made progressively, and the contract’s scope may change if the underlying project terms are revised.
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The 765kV deal is valued at approximately 220.1 billion won and includes both extra-high-voltage transformers and reactors for a U.S. 765kV power-grid project. The agreement runs from September 2026 to February 2029, with the final amount and schedule subject to possible changes in the underlying project.
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Hyosung’s U.S. expansion is supported by an ultra-high-voltage transformer factory in Tennessee that the company acquired in 2020, strengthening its ability to serve the American market locally.
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The company had accumulated 9.3 trillion won in new orders as of August, providing broader context for the September transformer contracts and its accelerating growth in power infrastructure.
South Korea's Hyosung Heavy Industries has secured $287 million in contracts to supply ultra-high-voltage transformers for new AI data centers across the United States, Energy News Beat reported. The deals include 765-kilovolt equipment worth roughly 220 billion won and 345-kilovolt transformers valued at 166.5 billion won, with deliveries scheduled through 2029.
The wins underscore surging electricity demand from artificial intelligence infrastructure. Chairman Cho Hyun-joon said the boom is creating a "power-infrastructure supercycle" and pledged to make Hyosung a global top-three transformer provider within five years, Korea Joong Ang Daily reported.
Two Major Transformer Orders Fuel Growth
The 345-kilovolt contract was signed through Hyosung's U.S. affiliate, HICO America Sales & Tech, and runs from September 2026 through August 2028. The 765-kilovolt deal, valued at approximately 220.1 billion won, covers extra-high-voltage transformers and reactors for a U.S. power-grid project running September 2026 to February 2029, BigGo Finance noted.
Both contracts include progressive payment schedules and may be adjusted if the underlying projects change scope. The deals represent a major win for Hyosung, which accumulated 9.3 trillion won in new orders by August—setting a strong pace for continued infrastructure growth, SE Daily reported.
Tennessee Factory Powers U.S. Market Entry
Hyosung's ability to win these contracts hinges on local manufacturing capability. The company acquired an ultra-high-voltage transformer factory in Tennessee in 2020, enabling it to serve American customers directly rather than shipping from Korea.
This U.S. footprint—combined with Hyosung's track record for reliability—helped the company compete against established global competitors. The Tennessee facility lets Hyosung deliver equipment faster and respond to customer needs more flexibly, TipRanks reported.
AI Data Centers Drive Record Power-Infrastructure Demand
Tech companies racing to build AI infrastructure are rapidly expanding electricity consumption. Data-center operators need transformers to step down ultra-high voltages from regional grids into usable power, making transformer suppliers critical to the AI buildout.
Hyosung plans to expand beyond transformers into a full power-infrastructure portfolio. The company aims to bundle circuit breakers, HVDC systems, STATCOM devices, and energy-storage systems—positioning itself as a one-stop shop for the $287 million AI-era power boom.
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