HD Hyundai Heavy Industries(329180) will supply power generation facilities worth 956 billion won to a U.S. big tech corporation's data center. On Apr., it won an additional order for power generation facilities for a U.S. data center.
HD Hyundai Heavy Industries said on the 10th that it signed a contract with U.S. energy infrastructure development corporation KovaN Energy Group to supply 9.6-megawatt (MW) HiMSEN engine-based power generation facilities. The contract totals 1,000 MW and 956 billion won, the largest power-generation engine supply deal HD Hyundai Heavy Industries has signed.
The supplied power generation facilities will be used as the power source for a local big tech corporation's data center. KovaN Energy Group is an energy infrastructure and engineering corporation that supplies gas, liquefied natural gas (LNG) and power products to various infrastructure projects, including data centers.
In Apr., HD Hyundai Heavy Industries also signed a 627.1 billion won contract with U.S. energy infrastructure development corporation AEG to supply power generation facilities for data centers.
The 9.6 MW-class HiMSEN engine being supplied this time is a high-capacity medium-speed engine. HD Hyundai Heavy Industries said it was designed for 24-hour operation based on high output and high efficiency, and offers high power generation efficiency and reliability. HD Hyundai Heavy Industries and KovaN Energy Group plan to continue cooperation in follow-up projects starting with this contract.
Demand for power equipment for data centers is increasing in the United States due to the expansion of artificial intelligence (AI) services and investment in cloud infrastructure. The Electric Power Research Institute (EPRI) projected that the share of data centers in total U.S. power consumption will expand by up to more than three times by 2030 compared with now.
HD Hyundai is also expanding each affiliate's business targeting the data center power market. HD Korea Shipbuilding & Offshore Engineering is developing core technologies related to floating data centers, HD Hyundai Electric is supplying distribution and power equipment, and HD Hyndai Marine Solution is pursuing maintenance and repair services for power generation engines.
An HD Hyundai Heavy Industries official said, "The fact that collaboration inquiries are pouring in to HD Hyundai Heavy Industries in the market for data center power generation engines is proof that the HiMSEN engine's technology and reliability have been verified," adding, "We will seek diverse business opportunities to expand our foothold in the power generation facilities market."