As the demand for artificial intelligence (AI) data centers skyrockets in the United States, Korean electrical equipment companies are ramping up investments in U.S. production facilities to meet the growing energy needs. According to a recent report by Korean the business media outlet Chosun Biz, data centers now account for approximately 10% of total electricity consumption in the U.S., creating a boom for manufacturers of critical power infrastructure, including ultra-high voltage transformers, distribution panels, and power lines.

HD Hyundai Electric is set to invest about $300 million in expanding its Ulsan factory and building a second facility in Alabama to increase its production of ultra-high voltage transformers, essential components in transmission networks. This expansion is expected to raise their production capacity by 30%. The company has accumulated over $5.5 billion in orders, with approximately 63% coming from the U.S. market.

Meanwhile, LS Electric is constructing a new factory in Texas and expanding its existing facilities in Utah. The company aims to meet the rising demand for distribution panels, particularly from large tech companies like xAI, the AI startup founded by Elon Musk. LS Electric's international sales accounted for over 50% of its total revenue last year, with plans to increase that share to 70% by 2030.

Hyosung Heavy Industries is also investing $75 million to expand its production capacity for ultra-high voltage transformers in Tennessee, with completion expected next year.

The U.S. electrical equipment market is poised for continued growth, driven by a combination of aging infrastructure and a shift away from Chinese suppliers, offering significant opportunities for Korean manufacturers.

Source: biz.chosun.com