As artificial intelligence (AI) spreads and a data center construction boom takes hold, data center developers are moving to secure power infrastructure such as power equipment and power distribution gear that can reliably supply massive electricity to increasingly large data centers. Interest is also growing in HD Hyundai Electric, the No. 1 company by market share in the U.S. ultra-high-voltage transformer market.
Reuters recently noted that "as Nvidia has become synonymous with the AI boom, data center developers are racing to expand facilities to avoid infrastructure bottlenecks, and power equipment suppliers are also benefiting from the data center construction boom," introducing HD Hyundai Electric as a beneficiary corporations.
While demand for data centers is growing, building them as quickly as desired is getting harder. According to consulting firm Pivotale AI, data center builders expect completion within six months. But in some emerging countries, it takes up to 24 months, and in major advanced countries, more than eight years, reflecting bottlenecks in data center-related power equipment.
Wing Kin Cheung, chief executive officer (CEO) of digital infrastructure services company BDx Data Centers, said, "Outside the data center industry, people talk about graphics processing units (CPUs), but inside the industry, the first question is how long the lead time is for transformers and generators."
This is also evident in HD Hyundai Electric's order backlog. As of the end of June, HD Hyundai Electric's order backlog stood at $8.5 billion, up 23% from six months earlier. HD Hyundai Electric said, "We currently have more than three years' worth of order backlog," adding, "With some key customers, we are holding order talks for volumes scheduled for delivery in 2030."
In the United States, where data center construction is active, HD Hyundai Electric is securing a competitive edge with core power equipment such as ultra-high-voltage transformers and high-voltage circuit breakers. In particular, in the U.S. market for ultra-high-voltage transformers of 100 megavolt-amperes (MVA) or higher, it posted market shares of 17.2% in 2024 and 25.7% in 2025, ranking No. 1 for two consecutive years.
The share of data centers in HD Hyundai Electric's new power equipment orders is also rising rapidly. The portion for data centers increased from 1.8% last year to 6.3% this year, and is expected to rise to more than 15% next year.
A HD Hyundai Electric official said, "The expansion of AI data center investment is creating new business opportunities across the power infrastructure spectrum, not only in ultra-high-voltage power equipment but also in power distribution equipment, rotating machinery, and energy storage systems (ESS)," adding, "Based on the accumulated technology and business capabilities of each institutional sector, we will strengthen our leading position in the data center power infrastructure market."