AI data center boom boosts Korean exporters

HD Hyundai Electric and Hyosung Heavy Industries, two of South Korea’s leading power equipment manufacturers, are securing a series of large overseas supply deals as global demand continues to rise. The companies are benefiting from a surge in artificial intelligence (AI) data center construction and rising investment in power infrastructure, strengthening their position in key markets including the United States and Australia.

HD Hyundai Electric said Thursday it has signed a long-term framework agreement worth up to 1.1212 trillion won with a global technology company building data centers in North America. The contract covers 553.9 billion won in distribution equipment and 567.3 billion won in transmission and power equipment.

The company will supply a bundled package of core power infrastructure for the data centers, combining both distribution and transmission systems. HD Hyundai Electric said the integrated approach improves system design accuracy while reducing risks related to delivery timelines, product quality and maintenance.

Industry analysts expect electricity demand from North American data centers to account for more than half of the increase in total U.S. power consumption through 2030. Against that backdrop, demand for reliable, high-capacity power equipment is expected to remain strong.

Hyosung Heavy Industries has signed a 310 billion won long-term supply contract with AusNet, a transmission grid operator in Victoria, Australia, for ultra-high-voltage transformers and reactors. Ultra-high-voltage transformers are used to raise or lower voltage for long-distance transmission, while reactors help stabilize power systems by reducing voltage fluctuations across the grid. Under the agreement, Hyosung Heavy Industries will exclusively supply ultra-high-voltage equipment to Victoria’s transmission network for five years. The deal follows a 142.5 billion won energy storage system project the company secured in Queensland in March.

Hyosung Heavy Industries currently holds the top market share in Australia’s ultra-high-voltage transformer segment. Chairman Cho Hyun-joon said the company aims to move beyond equipment supply and position itself as a provider of integrated solutions aligned with Australia’s energy transition policies.

Meanwhile, LS Electric held a completion ceremony Thursday at its Cheonan plant in South Chungcheong Province, officially launching what it describes as the world’s first fully direct current (DC) distribution factory. The facility integrates key DC-based technologies, including solid-state transformers (SSTs), solid-state circuit breakers (SSCBs) and energy storage systems (ESS).

DC distribution technology is gaining momentum as demand from AI data centers accelerates. While most existing power grids operate on alternating current (AC), many data centers and renewable energy systems rely on direct current (DC). Industry experts say DC-based distribution can reduce energy losses associated with AC-to-DC conversion, making it increasingly important for next-generation power infrastructure.


변종국 bjk@donga.com