HD Hyundai Heavy Industries lands $700 million deal for U.S. data center power equipment

HD Hyundai Heavy Industries has secured a significant contract worth 956 billion won (approximately $700 million) to supply power generation equipment to data centers operated by major U.S. tech companies. This deal marks the largest-ever order for the company in the power generation engine supply sector.

The contract was signed with Corban Energy Group, a U.S. energy infrastructure development firm. The order includes 1,000MW of HiMSEN engine-based power generation facilities. These units are designed for 24-hour operation, offering high output and efficiency, crucial for the continuous power needs of data centers.

This latest deal follows a previous contract in April with another U.S. energy infrastructure developer, AEG, for data center power equipment valued at 627.1 billion won. With these two contracts, HD Hyundai Heavy Industries has secured a total of 1.58 trillion won in U.S. data center power generation equipment orders this year alone.

The expansion into the U.S. data center market is driven by the increasing demand for electricity fueled by the proliferation of AI services and investments in cloud infrastructure. The U.S. Energy Information Administration projects that data centers could account for up to three times more of the U.S. electricity consumption by 2030 compared to current levels.

HD Hyundai is pursuing a group-wide strategy to expand its data center-related businesses. This includes HD Korea Shipbuilding & Offshore Engineering developing core technologies for floating data centers, HD Hyundai Electric focusing on distribution and power equipment, and HD Hyundai Marine Solution providing maintenance for power generation engines.

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Data center power engine market inquiries are pouring in. We will explore various business opportunities to expand our presence in the power generation equipment market.