HD Construction Equipment Opens New Engine Plant in Gunsan to Target AI Data Center Power Market

HD Construction Equipment has completed a new engine and battery pack manufacturing facility in Gunsan, North Jeolla Province, positioning itself to capture growing demand for high-output power generation engines driven by the rapid expansion of AI data centers. The move underscores how the surging power requirements of AI infrastructure are reshaping supply chains well beyond the data center sector itself, drawing industrial machinery and engine manufacturers into the energy equipment market.

The company held a completion ceremony on October 28 at its Gunsan campus within the Gunsan National Industrial Complex, attended by approximately 200 officials including HD Hyundai Vice Chairman Cho Young-chul, HD Construction Equipment President Moon Jae-young, and North Jeolla Province Governor Lee Won-taek. The new plant was built over roughly two years with an investment of 116.8 billion won on a site of approximately 62,700 square meters. It incorporates assembly robots, autonomous mobile robots, pre-quality defect detection systems, and an integrated control tower to enhance production efficiency and quality management capabilities.

The facility has an annual production capacity of 1,250 units of 1–3 MWe-class ultra-large power generation engines, 120 units of defense engines for tanks, and 1,460 MWh of battery packs. The battery pack capacity is sufficient to supply approximately 9,400 electric buses. The company plans to expand mass production of ultra-large power generation engines in response to rising demand for high-output generators as AI data centers proliferate. Starting with a 37-liter (1.3 MWe) model in the first half of next year, the company will sequentially begin mass production of a 77-liter (3 MWe) model in 2028 and a 50-liter (2 MWe) model in 2029.

At the ceremony, the company also unveiled the DX37, a 37-liter ultra-large power generation engine. HD Construction Equipment renamed its engine and battery pack business organization as the Power Solution Business Division and announced a new slogan, "Powering the Next." The company aims to achieve 2.5 trillion won in engine business revenue by 2030, approximately double the 1.3 trillion won recorded in 2025, by expanding its power generation and defense engine and battery pack businesses based on the new plant.

President Moon Jae-young said the company will "realize future technologies in response to new energy demands and proactively create new business opportunities," adding that it will strive to become a company that grows together with the local community. The investment reflects a broader industry trend in which the power generation sector is becoming increasingly intertwined with data center infrastructure planning, as operators of AI facilities require dedicated, high-capacity engine systems to ensure reliable electricity supply.