HD Hyundai Electric is making a strategic push into the European data center market, aiming to capitalize on the region's rising energy demands tied to digital infrastructure.

On June 29, the company announced it had signed a memorandum of understanding (MOU) with Bulk Infrastructure, a Norwegian data and communication infrastructure provider. The agreement outlines cooperation in the supply of key power equipment, including power transformers for data centers and eco-friendly high-voltage breakers.

Through this MOU, HD Hyundai Electric has secured priority bidding rights for upcoming data center construction projects led by Bulk Infrastructure. The two companies also plan to deepen collaboration to win orders for advanced, environmentally friendly high-voltage breakers, further strengthening Hyundai's footprint in Europe.

Bulk Infrastructure, founded in 2006, currently operates five data centers across Norway and Denmark. This new agreement builds on an existing relationship: last year, HD Hyundai Electric signed a contract to supply ultra-high voltage transformers to a large data center in Benesla, Norway, operated by Bulk.

The move comes at a time when Europe's energy demands for data centers are growing rapidly. According to a 2024 report by the International Energy Agency (IEA), the region consumed 70 terawatt-hours (TWh) of electricity in 2023, placing it among the top three global data center markets, alongside the United States and China. The IEA projects that global data center power consumption will grow by 15% annually between 2024 and 2030, over four times the average growth rate of total power demand.

Yang Jae-cheol, Executive Director of HD Hyundai Electric's Power Sales Division, commented, "We are one step closer to our goal of expanding our European market share by preparing a bridgehead to enter the data center market. We will focus on developing eco-friendly power devices specialized for the European market, working closely with local research institutes in Switzerland and Hungary."

Adding to its growing European activity, HD Hyundai Electric also recently signed a supply contract with Energy Net, a state-run Danish power company, for a 400 kV ultra-high voltage power transformer worth 40 billion won.

With increasing demand for sustainable and reliable energy infrastructure, HD Hyundai Electric's strategic partnerships position the company as a key player in powering Europe's digital future.

Source: Maeil Business Newspaper