HD Hyundai Heavy to invest 834 bln won in new power-engine facility

Hyundai Heavy Industries plans to invest 833.6 billion won ($600 million) in the construction of a new factory and installation of production equipment for large-scale power-generation engines. The investment, approved by the board, represents 8.92% of the company's equity capital. The project, set to begin construction and continue until May 31, 2028, aims to meet the growing global demand for electricity as AI and data centers consume more power.

HD Hyundai Heavy, which has been expanding its land-based power generation business due to the increasing reliance on reliable electricity for AI and cloud computing, has recently secured its largest power-generation engine order with U.S. developer Corban Energy Group. The company's HiMSEN gas engines, with a capacity of 9.6 megawatts, are powering the data centers.

As AI data centers continue to drive up electricity demand worldwide, South Korea's government estimates that AI-related expansion will contribute an additional 25-30 gigawatts to national power demand. HD Hyundai Heavy's expansion of engine capacity could help the company capture this growing market while diversifying its revenue stream towards power-generation equipment.