AI Data Center Demand Drives Transformer Orders and Investment
Siemens Energy reported approximately $16.6 billion (€15 billion) in AI data center-related orders in fiscal 2026, representing 9.1% of its €164 billion order backlog. The figure includes gas turbines and power grid equipment.
Demand is generating contracts for transformer manufacturers in the United States. HD Hyundai Electric signed a KRW 1.12 trillion supply agreement with a global technology company, covering electrical and power distribution equipment. Hyosung Heavy Industries secured US transformer contracts worth KRW 386.5 billion, including 765 kV and 345 kV units for data center projects.
Both manufacturers are expanding US production capacity. Meanwhile, LS ELECTRIC secured a KRW 168.9 billion contract to supply 38 kV switchgear for a US technology company's data centers, with deliveries scheduled from 2027.
Meeting this demand will require additional transformer manufacturing capacity and careful assessment of production capacity expansion.
Source: Korea IT Times
