Hyosung Heavy Industries Expands US Power Infrastructure for AI Data Centres

The rapid expansion of artificial intelligence (AI) and data-centre infrastructure is creating a new set of challenges for electricity generation, transmission and distribution, particularly in the United States. Rising power consumption from AI workloads, combined with the need to modernise ageing grid infrastructure, is prompting significant investment in technologies capable of delivering more efficient and reliable power.

Hyosung Heavy Industries is positioning itself to benefit from this shift by expanding its presence in the US power infrastructure market. The company is combining its local manufacturing capabilities with expertise in high-voltage power equipment and next-generation grid technologies as demand from AI data centres continues to increase.

Hyosung Chairman Hyun-Joon Cho has identified the changing power landscape as a strategic growth opportunity for the company. He has called for Hyosung Heavy Industries to establish itself as a long-term infrastructure partner capable of supporting the reliability and stability of the US electricity grid as AI-driven power requirements continue to grow.

The company plans to strengthen its offering for AI and data-centre customers by bringing together advanced grid technologies with its US manufacturing footprint. Its portfolio includes ultra-high-voltage transformers and circuit breakers, alongside emerging technologies such as solid-state transformers (SST), energy storage systems (ESS), static synchronous compensators (STATCOM) and high-voltage direct current (HVDC) systems.

Solid-State Transformers Target the AI Power Challenge

One of the technologies Hyosung Heavy Industries is prioritising for the changing power environment is the solid-state transformer. SSTs use power semiconductor devices to actively manage voltage and current, offering a more digitally controllable alternative to conventional transformer architectures while retaining the fundamental role of electrical isolation.

Hyosung began investing in SST research ahead of the expected growth in demand for more sophisticated power-management systems. In 2022, the company developed a 22.9kV, 1.05MVA-class SST designed for direct connection to urban distribution networks.

The development is intended to give Hyosung an early position in a technology that could become increasingly relevant as electricity networks evolve to accommodate data centres, distributed energy resources and other high-power applications. SSTs can provide greater control over electricity conversion and distribution, making them potentially valuable in environments where power quality, efficiency and flexibility are becoming increasingly important.

The global SST market is also attracting growing interest as utilities and infrastructure operators look to modernise electricity networks. Market research forecasts indicate annual growth of more than 40% for the broader SST sector, although large-capacity systems designed for high-voltage data-centre applications remain at an early stage of commercial development.

Hyosung sees this emerging market as an opportunity to leverage its existing experience in high-voltage power systems while developing new solutions for AI infrastructure. The company intends to accelerate research, demonstrations and commercialisation efforts as demand for advanced power conversion technologies develops.

$300M Investment Expands US Manufacturing Capacity

Hyosung Heavy Industries is also strengthening its position through investment in domestic US production. The company has committed approximately US$300 million to acquire and expand its ultra-high-voltage transformer manufacturing operation in Memphis, Tennessee.

The expansion is expected to significantly increase the company's transformer production capacity in the US. This local manufacturing strategy is particularly important as utilities and large infrastructure customers seek to reduce supply-chain risks and secure reliable access to critical grid equipment.

Ultra-high-voltage transformers are essential components of electricity transmission networks, but production capacity and lead times have become major industry concerns as utilities undertake large-scale grid upgrades. Growing electricity requirements from data centres are adding further pressure to the supply chain.

By expanding manufacturing in Tennessee, Hyosung aims to respond more effectively to demand from US utilities and large power consumers while reducing dependence on overseas production for critical equipment.

Partnership Strengthens High-Voltage Circuit Breaker Production

Hyosung Heavy Industries has also expanded its US strategy through a joint venture with Quanta Services, a major North American energy infrastructure solutions provider. The partnership is focused on local production of ultra-high-voltage circuit breakers covering voltage levels from 72.5kV to 800kV in Pennsylvania.

The initiative gives Hyosung a local manufacturing presence for both ultra-high-voltage transformers and circuit breakers, strengthening its ability to serve the US transmission and distribution market.

Quanta Services brings established relationships and an extensive customer network across the US energy infrastructure sector. Its involvement is expected to help connect Hyosung's power equipment and engineering capabilities with customers undertaking large-scale electricity infrastructure projects.

The collaboration also reflects a wider industry trend towards localising production of critical electrical infrastructure. With utilities facing increased demand for grid upgrades and data-centre developers requiring substantial new power capacity, manufacturers with established domestic production capabilities could have an advantage in securing major projects.

Building a Broader AI Data-Centre Power Portfolio

Hyosung Heavy Industries' strategy extends beyond transformers and circuit breakers. The company is developing a broader portfolio of technologies aimed at addressing the increasingly complex requirements of modern electricity networks.

Energy storage systems can help balance fluctuations in electricity supply and demand, while STATCOM technology can support voltage stability and power quality. HVDC systems, meanwhile, can enable efficient transmission of large quantities of electricity over long distances.

The company is also looking to SST technology as a potential bridge between traditional grid infrastructure and the digitally controlled power systems increasingly required by AI data centres.

The growing concentration of computing infrastructure is changing the requirements placed on electricity networks. AI facilities can consume substantial amounts of power and require highly reliable electricity supplies, creating demand for infrastructure that can manage high loads while maintaining efficiency and power quality.

For power equipment suppliers, this represents an opportunity to move beyond conventional grid hardware and provide integrated solutions covering power conversion, transmission, distribution, storage and grid stabilisation.

Hyosung's combination of US manufacturing, high-voltage equipment expertise and next-generation power technologies is designed to position the company for this transition. Its investments also align with the broader push in the US to strengthen domestic manufacturing and improve the resilience of critical infrastructure supply chains.

As AI deployment continues to expand, the availability of electricity is increasingly becoming a strategic consideration for data-centre development. The ability to connect new facilities to the grid, deliver sufficient power and maintain stable operation is becoming just as important as access to computing hardware and advanced semiconductor technologies.

Hyosung Heavy Industries is therefore seeking to establish a broader role in the AI infrastructure ecosystem by addressing the power requirements that underpin large-scale computing. Through its manufacturing investments, technology development and strategic partnerships, the company aims to become a key supplier of power infrastructure for the next generation of US data centres and modernised electricity networks.