HD Construction Equipment opens $87 mil. plant to tap AI data center demand
Summary
HD Construction Equipment opened an engine and battery pack plant in Gunsan, North Jeolla Province, Wednesday, to meet rising demand for power-generation engines at AI data centers. Built at a cost of 116.8 billion won, the facility will produce power-generation and military engines as well as battery packs. The company plans to introduce three high-output engine models from next year through 2029 and aims to generate 2.5 trillion won in annual engine-business revenue by 2030.
Key Facts
- The plant occupies a 62,700-square-meter site and was built over about two years.
- Its annual capacity includes 1,250 power-generation engines rated at 1 to 3 megawatts electric, 120 military engines for tanks and battery packs totaling up to 1,460 megawatt-hours.
- The company plans to begin producing a 37-liter, 1.3-MWe engine in the first half of next year, followed by a 77-liter, 3-MWe model in 2028 and a 50-liter, 2-MWe model in 2029.
- The company unveiled the DX37 engine and renamed its engine business division the power solutions division.
- HD Construction Equipment recorded 1.3 trillion won in engine-business revenue in 2025.
North Jeolla Special Self-Governing Province Gov. Lee Won-taek, fifth from left, HD Hyundai Vice Chairman Cho Young-cheul, center, Rep. Kim Eui-kyeom, seventh from left, and HD Construction Equipment CEO Moon Jae-young, eighth from left, pose during the opening ceremony of HD Construction Equipment's new plant in Gunsan, North Jeolla Province, Wednesday. Courtesy of HD Construction Equipment
HD Construction Equipment opened a new engine and battery pack plant in Gunsan, North Jeolla Province, Wednesday, as it seeks to tap growing demand for high-output power-generation engines for artificial intelligence (AI) data centers.
The company held an opening ceremony at its Gunsan campus in the Gunsan National Industrial Complex, attended by HD Hyundai Vice Chairman Cho Young-cheul, HD Construction Equipment CEO Moon Jae-young, provincial officials, lawmakers and business partners, among about 200 people.
The new plant was built over about two years at a cost of 116.8 billion won ($87.38 million), on a 62,700-square-meter site within the campus. It features automated production systems, including assembly robots, autonomous mobile robots and equipment that detects quality defects before products leave the line, as well as an integrated control tower for overseeing operations.
The facility has an annual production capacity of 1,250 power-generation engines at 1 to 3 megawatts electric (MWe), 120 military engines for tanks and battery packs totaling up to 1,460 megawatt-hours, which is enough to supply about 9,400 electric buses.
To meet rising demand for high-output generators at AI data centers, the company plans to start producing its 37-liter, 1.3-MWe engine in the first half of next year, followed by a 77-liter, 3-MWe model in 2028 and a 50-liter, 2-MWe model in 2029.
HD Construction Equipment also plans to use the facility to accommodate expected growth in demand for military engines and expand battery pack supplies for commercial vehicles, construction equipment and industrial applications.
At the ceremony, the company unveiled the DX37, a 37-liter power-generation engine, along with a new name for its engine business division. The division will be called the power solutions division, reflecting its focus on providing power for industry through engines and battery packs.
HD Construction Equipment said it aims to generate 2.5 trillion won in annual revenue from its engine business alone by 2030, nearly double the 1.3 trillion won recorded in 2025.
"We will respond to new energy demand, realize future technologies and proactively create new business opportunities," Moon said during the ceremony.
"Through these efforts, we will grow alongside the local community."
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