The stock prices of the 'big three' in power equipment, including HD Hyundai Electric, LS ELECTRIC, and Hyosung Heavy Industries, are weak in early trading on the 27th. Reports indicate that Microsoft canceled its data center investments due to supply surplus, which has burdened investor sentiment.
HD Hyundai Electric shares were traded at 310,500 won on the KOSPI market at 9:19 a.m. that day, down 6.76% (22,500 won) from the previous day. At the same time, the stock prices of Hyosung Heavy Industries and LS ELECTRIC also fell by 4.72% (22,500 won) and 3.86% (7,450 won), respectively.
U.S. investment bank TD Cowen reported that Microsoft canceled a total of 2 GW (gigawatts) worth of data center projects in the U.S. and Europe over the past six months.
When TD Cowen disclosed last month that Microsoft had canceled at least two data center leasing contracts, the power equipment stocks also faced adjustments. There are concerns that, as data center investments decrease, the demand for power infrastructure may also decline.
However, Microsoft has stated it will execute over $80 billion in capital expenditures (CAPEX) as previously announced by the end of June 2025. Additionally, signals are emerging that data center investments continue, as some contracts abandoned by Microsoft are being acquired by Alphabet, Google's parent company, and Meta Platforms.