Iljin Electric is accelerating its push into the local power infrastructure market by winning a large transformer order in the North American data center market.
Iljin Electric said on Apr. 6 that it signed a contract to supply extra-high-voltage transformers worth about 120 billion won for a large data center project to be built in Alberta, Canada. Under the deal, Iljin Electric will deliver 21 245-kV (kilovolt) extra-high-voltage transformers starting in the first half of 2027.
An Iljin Electric official said, "In addition to this order, we are preparing to win multiple projects, and we expect to share news of additional large orders within the first half of this year."
Recently in North America, construction of data centers has been increasing rapidly due to the spread of artificial intelligence (AI), driving a surge in demand for high-efficiency, high-capacity power equipment. In particular, because data centers must supply large amounts of power stably, the importance of key power facilities such as extra-high-voltage transformers is growing.
Iljin Electric has expanded its production capacity by, among other steps, adding to its Hongseong plant, and based on that is responding to global customers' demand and moving to increase its market share.
The order growth is feeding into results. As of the end of last year, the order backlog of the institutional sector in charge of the transformer business stood at about $1.0 billion (about 1.6 trillion won). Observers say the company has already secured several years of work ahead, providing a stable foundation for growth.