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HD Korea Shipbuilding & Offshore Engineering said it was directly discussing power-generation engine supplies for artificial intelligence (AI) data centers with global big tech companies. The company explained that it previously secured orders through developers, but hyperscalers operating large data centers have recently been requesting direct supply discussions.
At its third-quarter earnings conference call on 28, HD Korea Shipbuilding & Offshore Engineering said, “We previously secured orders for AI data center power-generation engines through developers and others, but recently there have also been cases in which hyperscalers have contacted us directly to discuss supplies.”
The company added, “Demand for land-based power-generation engines comes not only from AI data centers but also from countries building national power grids,” explaining that “orders for power-generation equipment related to national grid expansion are also expected.”
The land-based power-generation engines supplied by HD Hyundai Heavy Industries are based on its proprietary medium-sized engine brand, HiMSEN. HiMSEN engines are medium-speed engines used for applications including driving generators on ships. On land, they are combined with generators to produce electricity.
HD Hyundai Heavy Industries signed power-generation equipment supply contracts worth 627.1 billion won with US company Aperion Energy Group in April this year and 956 billion won with Corban Energy Group in August. The two contracts have a combined value of 1.5831 trillion won. Both involve supplying land-based power-generation equipment based on HiMSEN engines.
Meanwhile, HD Hyundai Heavy Industries announced in September that it would invest 833.6 billion won to establish a land-based power-generation HiMSEN engine production facility with an annual capacity of 3 GW in Onsan-eup, Ulju County, Ulsan. The new factory is expected to enter full-scale operation after completion in May 2028.
Original Korean article: Newspim
English brief by Korea Wind Intelligence, koreawindintel.com
