HD Hyundai Heavy Industries signed a supply contract for power-generation equipment with US energy infrastructure developer ‘Corban Energy Group’ to build data centers in the United States (from left, Corban Energy Group CEO Daniel Chung, and Han Joo-seok, business representative for HD Hyundai Heavy Industries’ engine machinery division). Photo=HD Hyundai Heavy Industries
HD Hyundai Heavy Industries won a contract worth 956 billion won to supply power-generation equipment totaling 1,000 megawatts (MW) that will be used for data centers operated by US big tech firms. It is the largest deal ever among the company’s engine supply contracts for power generation.
According to HD Hyundai Heavy Industries (Vice Chairman of the Board of Directors Lee Sang-gyun) on the 10th, the company signed a supply contract with Corban Energy Group, a U.S. energy infrastructure developer, for power-generation equipment based on 9.6MW-class HiMSEN engines.
The contract is for a total of 1,000MW and 956 billion won. The supplied power-generation equipment is set to be used as a power supply source for data centers of big tech companies in the United States.
Corban Energy Group is an energy infrastructure and engineering company that supplies gas, LNG, and power products for infrastructure businesses such as data center construction and the DoW (Department of War) project.
HD Hyundai Heavy Industries CI. Photo=HD Hyundai Heavy Industries
HD Hyundai Heavy Industries also signed, in April of this year, a supply contract for power-generation equipment for data centers with AEG, a U.S. energy infrastructure developer, worth 627.1 billion won. Including this contract, the company continues to secure orders in the U.S. market for data center power-generation equipment.
The 9.6MW-class HiMSEN engines supplied this time are large-capacity medium-speed engines for power generation. They will be applied to facilities that need round-the-clock power supply, such as data centers.
In the U.S. market for power-generation equipment for data centers, electricity demand is rising as the spread of artificial intelligence (AI) services and expansion of cloud infrastructure investment continue. The Electric Power Research Institute (EPRI) forecasts that data centers’ share of total U.S. electricity consumption will increase to as much as more than triple the current level by 2030.
HiMSEN gas engine for land-based power generation by HD Hyundai Heavy Industries. Photo=HD Hyundai Heavy Industries
HD Hyundai group’s affiliates are also expanding businesses related to data center power infrastructure. HD Korea Shipbuilding & Offshore Engineering is developing key technologies for floating data centers, while HD Hyundai Electric is pursuing distribution and power equipment, and HD Hyundai Marine Solutions is pushing power-generation engine operation and maintenance businesses, respectively.
A person from HD Hyundai Heavy Industries said, “In the market for power generation engines for data centers, the fact that collaboration inquiries to HD Hyundai Heavy Industries are coming in one after another is proof that the technological competitiveness and reliability of the HiMSEN engine have been demonstrated,” adding, “We will look for a variety of business opportunities and expand our presence in the power-generation equipment market.”