HD Hyundai Electric signs 1.1 trillion won power infrastructure deal with global tech giant

HD Hyundai Electric announced Wednesday that it has signed a long-term framework agreement with a global tech company to supply distribution and power equipment worth up to 1.12 trillion won ($721 million).

Under the deal, distribution equipment accounts for 553.9 billion won of the total contract value, with power equipment making up the remaining 567.3 billion won.

Actual orders under the framework agreement will be placed in stages in line with data center construction schedules. HD Hyundai Electric plans to deliver the products to data centers the customer is building across North America through 2028.

The contract is notable because HD Hyundai Electric will supply the core power infrastructure needed to operate large-scale data centers as a combined package of distribution and power equipment. Bundling the two product lines improves design consistency across the overall power infrastructure and reduces risks related to delivery schedules, quality control and after-sales service.

Demand for data center power infrastructure is growing rapidly, particularly in North America. The International Energy Agency projects that global data center power consumption will more than double, rising from 415 terawatt-hours in 2024 to 945 terawatt-hours by 2030.

In the United States in particular, data centers are expected to account for roughly half of all growth in electricity demand through 2030. HD Hyundai Electric plans to further strengthen its push into the North American market in response to rising data center power demand.

"This contract reflects our distribution and power equipment meeting the stringent quality standards of a global tech company," an HD Hyundai Electric official said. "We will continue to expand customer-tailored package supply spanning a diverse range of products and steadily reinforce our position in the data center power infrastructure market."