South Korean Power Firms Saw Backlog Reach 43 Trillion Won
Equipment manufacturers expanded U.S. facilities to meet rising demand from AI and global data center growth.
Updated on Sept. 29, 2026 in Manufacturing
Live Poll
Do you expect electricity costs for your household to increase due to rising data center demand?
South Korean power equipment makers reported a combined order backlog of 43 trillion won in the first half of 2026. The firms also achieved a combined operating margin of 15.5 percent during this period.
Why it matters
The surge in demand is driven by the rapid expansion of global data centers and the massive power requirements of AI servers. U.S. domestic transformer production has struggled to keep pace, leading to import reliance exceeding 90 percent.
HD Hyundai Electric secured a 25.7 percent share of the U.S. market for extra-high-voltage transformers in 2025. Meanwhile, lead times for major power equipment in the U.S. currently exceed two years.
The players
HD Hyundai Electric
This South Korean electrical equipment company is a major supplier of power infrastructure and transformers in the global market.
Hyosung Heavy Industries
This firm is a key manufacturer of heavy electrical machinery and grid infrastructure components based in South Korea.
LS Electric
This organization specializes in industrial automation and power transmission equipment, maintaining several production sites in the United States.
Quanta Services Inc.
This company provides specialized infrastructure solutions for the utility, renewable energy, and communications industries.
The details
To address supply bottlenecks, manufacturers are aggressively expanding local production capacity across the United States. Notable moves include joint ventures to build circuit breakers and the construction of second manufacturing plants to scale up domestic operations.
Timeline
2011: HD Hyundai Electric established its first U.S. production unit.
2020: Hyosung Heavy Industries acquired its Memphis, Tennessee plant.
2022: LS Electric acquired a distribution-panel maker in Utah.
July 2026: Hyosung and Quanta Services established a joint venture.
April 2027: HD Hyundai Electric will complete its second Alabama plant.
Market Landscape
The aggressive build-out of U.S. manufacturing capacity mirrors the structural shift in the power sector driven by the 161 gigawatt global data center power demand projection. By localizing production, these firms are positioning themselves to capitalize on the massive grid-capacity requirements imposed by AI server adoption.
The expansion of domestic manufacturing capacity aims to reduce the long-standing two-year lead times for power equipment. For the average subscriber or client, this may eventually lead to more stable grid infrastructure as utilities finally secure the necessary heavy-duty electrical components.
The takeaway
The move toward localizing production reflects the critical need to align industrial output with the ballooning energy demands of modern AI infrastructure. Readers should note that supply-side investments of this scale are essential precursors to meeting long-term global power consumption targets.
What happens next
HD Hyundai Electric is scheduled to complete its second Alabama plant in April 2027.
Further reading
Learn more about industrial growth in the Manufacturing sector.
Source note: This article includes information reported by Pulse.
Live Poll
Do you expect electricity costs for your household to increase due to rising data center demand?
