Hyosung Heavy Industries Steps Up U.S. Power Infrastructure Push as AI Data Centers Drive Demand

Hyosung Heavy Industries is intensifying its push into the U.S. power infrastructure market, driven by the burgeoning demand from artificial intelligence data centers. The South Korean company recently inked deals worth 386.5 billion won ($270 million) to supply ultra-high-voltage transformers to two major U.S. technology firms.

These orders encompass 220 billion won worth of 765-kilovolt transformers and 166.5 billion won worth of 345-kilovolt transformers, all earmarked for new AI data centers under development in the North and South of the United States.

Hyosung's expansion reflects the critical role power infrastructure plays in supporting AI's growing electricity needs. As hyperscale data centers consume vast amounts of electricity, reliable transmission capacity and stable power quality have become paramount for the advancement of AI computing infrastructure. To capitalize on this trend, Hyosung has assembled a dedicated data center business team, merging engineers specializing in transformers, circuit breakers, energy storage systems, microgrids, and STATCOMs – devices used for grid voltage stabilization.

Furthermore, the company is bolstering its U.S. manufacturing capabilities. Its Memphis, Tennessee plant, acquired in 2020, is currently undergoing expansion, with the completed facility expected to be one of the largest ultra-high-voltage transformer producers in the United States. This local production could provide Hyosung with a competitive edge, as American utilities and infrastructure developers prioritize resilient supply chains and quicker delivery times.

In addition to transformers, Hyosung is diversifying its product portfolio for the U.S. market. In July, the company established a joint venture with North American energy infrastructure firm Quanta to manufacture ultra-high-voltage circuit breakers. This strategic move aims to broaden Hyosung's offerings, enabling it to present transformers and circuit breakers as integral components of a comprehensive power infrastructure solution.

Hyosung's expansion into North America mirrors its robust growth trajectory. As of August, the company had secured approximately 9.3 trillion won in new orders, surpassing its full-year 2025 order intake and raising its 2026 target to 12 trillion won from the previous 8.4 trillion won. The company's strong presence in the U.S. ultra-high-voltage transformer market, including contributions to the installation of 765-kV transformers on the U.S. transmission grid, positions it well for future opportunities in grid modernization and voltage stabilization equipment.

Looking ahead, Hyosung's business strategy is set to encompass a broader range of power infrastructure needs, including high-voltage direct current transmission, STATCOMs, energy storage systems, and microgrids. This diversification allows the company to cater to the evolving demands of AI data centers, aging power grids, and emerging renewable energy sources.

As competition intensifies among global power equipment manufacturers, Hyosung will need to translate its current order momentum into sustained growth, while simultaneously expanding its production capacity and maintaining delivery competitiveness in the dynamic U.S. power infrastructure market.