With increased demand for power machinery due to greater funding in AI data centers, HD Hyundai Electric has entered into an initial agreement to provide electrical systems for data centers in North America for a major international technology firm, worth 1 trillion South Korean won.
On July 2, HD Hyundai Electric revealed that it has obtained a long-term foundational supply agreement for distribution and power infrastructure from a major international technology company, valued at as much as 1.1212 trillion South Korean won. This deal consists of 553.9 billion South Korean won allocated for distribution gear and 567.3 billion South Korean won designated for power systems. Final orders will be processed based on the customer's data center development timeline, with HD Hyundai Electric intending to gradually provide relevant products to ongoing data centers across North America through 2028.
This agreement regarding data center infrastructure stands out due to its bundled supply approach, which integrates both distribution and power equipment. Through offering fully coordinated power solutions, the firm improves design uniformity and minimizes hazards linked to project deadlines, product standards, and post-sale support (AS), gaining acknowledgment for its broad-based supply expertise throughout the power industry spectrum.
The International Energy Agency (IEA) predicts that worldwide data center electricity usage will exceed doubling, rising from 415 TWh (terawatt-hours) in 2024 to 945 TWh by 2030. In the United States, data centers are projected to make up almost half of the overall rise in energy demand by 2030, indicating significant expansion in the data center power infrastructure sector.
A representative from HD Hyundai Electric mentioned, "This agreement highlights the company's capability to satisfy the rigorous quality requirements of major international technology companies while showcasing effectiveness in both distribution and electrical equipment." The firm further noted, "We plan to increase tailored supply packages across various product ranges to enhance our standing in the worldwide data center power systems sector."