HD Construction Equipment Secures $276 Million Engine Deal to Power U.S. Data Centers

HD Construction Equipment has signed a contract to supply gas-fueled power-generation engines to ERock, a U.S. power infrastructure solutions provider, in a deal valued at approximately 390 billion won ($276 million) that runs from 2027 to 2028. The agreement marks a significant entry for the South Korean manufacturer into the rapidly expanding North American data center power market, where demand for on-site generation is surging on the back of artificial intelligence-driven computing growth.

The product covered by the contract is a 22-liter high-efficiency gas power-generation engine known as a "long block," a semi-finished engine body that excludes the fuel and ignition systems. ERock plans to use these engines to build generator set solutions capable of supplying stable power to hyperscale data centers operated by U.S. Big Tech companies.

HD Construction Equipment said the order is significant because it establishes the company's position in the North American data center market by supplying large-scale engines for continuous power generation. As delays in grid connections drive up demand for on-site power generation at data centers, the company said the deal demonstrates the technological capability and reliability its engines need for extended continuous operation.

The company plans to pursue the data center power-generation engine market aggressively. To that end, it will build a production system for ultra-large power-generation engines in the 1- to 3-megawatt range, centered on a new engine plant in Gunsan scheduled for completion at the end of this month. It will launch a 37-liter model (1.5 megawatts) next year and a 77-liter model (3 megawatts) in 2028 to meet demand for high-output power-generation engines.

Global market research firm Dell'Oro Group projects that worldwide data center capital expenditure will exceed a cumulative $3 trillion by 2030. Fortune Business Insights forecasts that the global data center generator market will grow at an average annual rate of 8.4%, from $10.34 billion this year to $19.72 billion in 2034.

"This order is a meaningful achievement that recognizes our engine technology in data center power, a new growth area," an official at HD Construction Equipment said. "We will expand our position in the global data center and distributed power generation markets going forward."