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

HD Hyundai Heavy Industries is expanding its reach into the U.S. artificial intelligence data center market with its proprietary HiMSEN gas engines. The company announced on August 10 that it signed a 956 billion won ($700 million) contract with Covan Energy Group, a U.S. energy infrastructure and engineering firm, to supply power generation equipment.

This latest deal surpasses the company's previous record, a 627.1 billion won contract signed in April with AEG, another U.S. energy infrastructure developer. Combined, these two contracts for U.S. data center power generation equipment total 1.58 trillion won ($1.2 billion) for the year. The equipment to be supplied under the new contract has a total capacity of 1,000 megawatts and will power data centers for major U.S. tech companies.

The HiMSEN engines, developed by HD Hyundai Heavy Industries, have been used for propulsion in ships, onboard power generation, and land-based power plants. The specific models for this contract are 9.6 MW medium-speed engines, noted for their high output, efficiency, and 24-hour operational capability, making them suitable for the stable power demands of data centers.

The demand for electricity in U.S. data centers is rapidly increasing due to the expansion of AI services and cloud infrastructure. The Electric Power Research Institute (EPRI) projects that data centers' share of U.S. electricity consumption could rise from about 4-5% in 2024 to 9-17% by 2030.

HD Hyundai is leveraging its group's capabilities to target the data center power market. HD Korea Shipbuilding & Offshore Engineering is developing floating data center technology, HD Hyundai Electric supplies power distribution and equipment, and HD Hyundai Marine Solution is expanding its maintenance services for power generation engines. A company representative stated that the increasing inquiries for data center power engines validate the technology and reliability of the HiMSEN engine, and they aim to broaden their presence in the power generation equipment market.

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The continuous inquiries for collaboration in the data center power engine market signify that the technology and reliability of the HiMSEN engine have been proven.