HD Hyundai Electric lands $720 mil. power deal with global Big Tech firm

HD Hyundai Electric's distribution transformer, left, and high voltage transformer / Courtesy of HD Hyundai Electric

HD Hyundai Electric has secured a power infrastructure supply agreement worth up to 1.12 trillion won ($720 million) with a global Big Tech company, strengthening its foothold in the fast-growing North American data center market as artificial intelligence (AI) fuels surging demand for electricity infrastructure.

Under the long-term framework agreement, HD Hyundai Electric will supply distribution equipment worth 553.9 billion won and high-voltage equipment worth 567.3 billion won to data centers under construction across North America through 2028. Individual purchase orders will be issued in phases according to the customer's construction schedule.

The deal is significant because it goes beyond supplying individual products, covering an integrated package of power infrastructure equipment required to operate large-scale data centers.

The company will provide both distribution equipment, which safely distributes electricity throughout a facility, and high-voltage equipment, which regulates voltage and ensures efficient transmission and distribution of electricity. Supplying both product categories as a package improves compatibility across the entire power system while reducing risks related to delivery schedules, quality control and after-sales service.

The package approach also highlights HD Hyundai Electric's competitive strength across the power equipment value chain, as global technology companies increasingly seek turnkey solutions from a single supplier to ensure the reliability of hyperscale data centers.

The agreement comes as demand for data center power infrastructure accelerates along with the rapid expansion of AI.

According to the International Energy Agency, global electricity consumption by data centers is projected to more than double from 415 terawatt-hours in 2024 to 945 terawatt-hours by 2030.

In the United States, data centers are expected to account for roughly half of the increase in electricity demand in the country through 2030, driving investment in transformers, switchgear, circuit breakers and other power equipment. At the same time, aging power grids across North America are undergoing upgrades, creating additional opportunities for suppliers of electrical infrastructure.

"By meeting the stringent quality standards required by a global Big Tech company for its data centers, this agreement validates the competitiveness of our distribution and power equipment," an HD Hyundai Electric official said.

"We will continue to strengthen our position in the data center power infrastructure market by expanding customer-tailored package solutions across a broader range of products," the official added.