Hyosung Heavy Industries is stepping up its efforts to capture opportunities in the U.S. AI and data centre power market, backed by investments in domestic manufacturing capacity, next-generation grid technologies and strategic partnerships.
Hyosung Chairman Hyun-Joon Cho has been leading investments aimed at addressing the changing requirements of the power infrastructure market as artificial intelligence (AI) and data centres drive a sharp increase in electricity demand in the United States. At the same time, the need to replace ageing grid infrastructure is prompting large-scale investment in the country’s power network.
“Driven by the expansion of AI and data centers, power infrastructure has now become a core industry directly linked to national security,” said Chairman Cho. “Building on Hyosung Heavy Industries’ U.S. manufacturing facilities and technological prowess, we must establish ourselves as an irreplaceable, essential long-term partner in stabilizing the American power grid.”
The company plans to combine its U.S. manufacturing base and established capabilities in power equipment, including ultra-high-voltage transformers and circuit breakers, with next-generation grid technologies to accelerate its expansion in the U.S. AI data centre power market.
Hyosung Heavy Industries has identified Solid State Transformer (SST) technology as an important component of future power transmission and distribution systems required for the AI era. The company began research and development in the technology ahead of expected market growth.
In 2022, Hyosung Heavy Industries successfully developed what it describes as the world’s first 22.9kV 1.05MVA-class SST capable of direct connection to urban distribution networks. The development strengthened the company’s position in next-generation power conversion technology and is expected to support its efforts to pursue emerging market opportunities.
An SST uses power semiconductors to precisely control voltage and current while retaining the insulation functions of conventional transformers. The technology presents high barriers to entry because it requires sophisticated power control capabilities.
Global market research firms project that the worldwide SST market will expand at an average annual rate of more than 40%, supported by the modernisation of power infrastructure. Meanwhile, the large-capacity SST market for data centres operating at 22.9kV and above remains at an early stage, with only a limited number of companies globally pursuing commercialisation and demonstration projects.
With the market still developing, Hyosung Heavy Industries plans to accelerate its technology and commercialisation efforts to secure an early-mover position.
Hyosung Heavy Industries is also expanding its U.S. ultra-high-voltage transformer manufacturing capabilities. The company has invested a total of USD 300 million in the acquisition and expansion of its ultra-high-voltage transformer manufacturing facility in Memphis, Tennessee.
Following completion of the ongoing expansion, the company expects to secure one of the largest ultra-high-voltage transformer production capacities in the United States.
The company has also established a joint venture with Quanta Services, a North American energy infrastructure solutions company, to locally manufacture 72.5kV to 800kV ultra-high-voltage circuit breakers in Pennsylvania.
Through the partnership, Hyosung has become the first Korean power equipment manufacturer to establish local production capabilities for both ultra-high-voltage transformers and circuit breakers in the U.S. market.
Quanta Services has an extensive presence and customer network across the United States and provides infrastructure solutions for facilities with large-scale power demand.
Hyosung Heavy Industries intends to leverage Quanta Services’ infrastructure capabilities alongside its own power technology expertise to strengthen its position in the U.S. market.
The company aims to become a key participant in the data centre power infrastructure sector by integrating its accumulated technological capabilities, U.S. local manufacturing base and next-generation power grid technologies.
These technologies include Solid State Transformers (SST), Energy Storage Systems (ESS), STATCOM and High Voltage Direct Current (HVDC) systems, which Hyosung Heavy Industries plans to use as part of its broader strategy for addressing the evolving power infrastructure requirements associated with AI and data centres.
