HD Hyundai Heavy wins record $674m US data center power deal

HD Hyundai Heavy Industries said Monday it has secured a 956 billion won ($675 million) deal to supply power generation systems for a US data center project, marking its largest-ever power engine order.

The contract with US energy infrastructure company Corban Energy Group covers 1,000 megawatts of generating capacity built around HD Hyundai Heavy’s 9.6-MW HiMSEN engines, according to the company.

The engines will be used to power data centers for a US big tech company.

The latest win comes less than four months after HD Hyundai Heavy signed a 627.1 billion won deal with US energy infrastructure developer Aperion Energy Group in April to supply 684 MW of power generation systems for data centers.

That contract had been the company’s largest power engine order at the time.

The back-to-back deals come as HD Hyundai Heavy expands its power generation business beyond its core shipbuilding operations, tapping growing demand for dedicated electricity supplies from data centers in the US.

Corban Energy Group supplies gas, liquefied natural gas and power products for infrastructure projects spanning data centers and the defense sector.

HD Hyundai Heavy Industries’ HiMSEN engine for land-based power generation (HD Hyundai Heavy Industries)

HD Hyundai Heavy said its 9.6-MW HiMSEN is a high-capacity, medium-speed engine suited for continuous operation, with its high output and efficiency allowing it to meet the round-the-clock power requirements of data centers.

The two companies plan to pursue further cooperation on follow-up projects, according to HD Hyundai Heavy.

Demand for power generation equipment is rising alongside the rapid buildout of data centers in the US, fueled by growing investment in artificial intelligence and other computing-intensive services.

The Electric Power Research Institute projects data centers could account for 9 to 17 percent of US electricity consumption by 2030, up from about 4 to 5 percent today.

HD Hyundai is also looking to capitalize on the data center boom across the group.

HD Korea Shipbuilding & Offshore Engineering, the group’s shipbuilding holding company, is developing core technologies for floating data centers. HD Hyundai Electric is expanding its supply of power distribution and electrical equipment, while HD Hyundai Marine Solution is seeking to grow its maintenance business for power generation engines.

“The steady stream of collaboration inquiries we are receiving in the data center power generation engine market demonstrates the market recognition of the HiMSEN engine’s technological capabilities and reliability,” an HD Hyundai Heavy Industries official said.

“We will continue to explore diverse business opportunities and strengthen our presence in the power generation equipment market.”

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