Hyosung Heavy Industries' 765-kilovolt transformer installed as part of the U.S. power gridHYOSUNG HEAVY INDUSTRIES
Hyosung Heavy Industries has sealed two ultra-high-voltage transformer supply contracts worth $287 million with two major U.S. tech companies, the Korean power equipment maker said Tuesday.
The transformers — 765-kilovolt and 345-kilovolt models — will be deployed at new AI data centers being built in both the northern and southern regions of the United States. They step down electricity from long-distance transmission lines to voltages usable by data centers, which require massive and stable power supplies to run AI computing hardware.
Once an ongoing expansion is complete, Hyosung's Memphis plant in Tennessee — acquired in 2020 in a push led by Chairman Cho Hyun-joon — will hold the largest ultra-high-voltage transformer production capacity in the country.
In July, Hyosung also formed a joint venture with Quanta Services, a Texas-based energy infrastructure firm, to produce ultra-high-voltage circuit breakers locally, extending its U.S. manufacturing footprint beyond transformers.
Hyosung has been the No. 1 765-kilovolt transformer supplier in the United States since the early 2010s and now covers nearly half of all 765-kilovolt transformers installed on the American grid.
“No matter how many data centers get built, they're useless without a power supply. The AI era has triggered explosive demand for power infrastructure — a supercycle not seen in 60 years,” Chairman Cho said. “Hyosung will become one of the world's top three players in the sector within five years, built on a total solution portfolio spanning transformers and circuit breakers as well as power-stabilization systems.”
Hyosung's orders through August reached roughly 9.3 trillion won ($6.7 billion), already surpassing last year's full-year total. The company raised its annual order target to 12 trillion won from 8.4 trillion won.
Goldman Sachs projects that U.S. data center power demand will grow at an average annual rate of 15 percent through 2030, requiring roughly $50 billion in new power infrastructure investment.
