Power equipment makers race to expand US capacity amid AI boom

Power equipment makers are expanding U.S. production and securing major supply contracts as the artificial intelligence (AI) data center boom drives demand for equipment ranging from high-voltage transformers to distribution gear, intensifying competition among suppliers for major contracts. HD Hyundai Electric, LS Electric and Hyosung Heavy Industries are stepping up investments in local manufacturing to meet the growing demand from U.S. tech companies building out AI data centers. HD Hyundai Electric is building a second plant in Alabama, scheduled for completion in April. The expansion is expected to boost its extra-high-voltage transformer production capacity by about 50 percent and enable it to manufacture transformers rated up to 765 kilovolts. In July, the company secured a 1.12 trillion won ($836.8 million) supply contract with a global technology company, comprising 567.3 billion won of power equipment and 553.9 billion won of distribution equipment for data center construction. It reported revenue of 1.18 trillion won and operating profit of 284.5 billion won in the third quart