Hyosung Chairman Cho Hyun-Joon Targets U.S. AI Power Market with World-First 22.9kV Solid State Transformer

As the artificial intelligence era accelerates the transformation of global power networks, Hyosung Group Chairman Hyun-Joon Cho is positioning the company's heavy industries arm at the forefront of the U.S. market for AI-driven electricity infrastructure. With data center power demand soaring and aging grid assets requiring urgent replacement across the United States, the company is leveraging next-generation transformer technology and expanded local manufacturing to capture a growing share of this critical sector.

Hyosung Heavy Industries has developed what it says is the world's first 22.9kV solid state transformer (SST), a breakthrough in power conversion technology designed to support high-voltage distribution networks serving AI data centers. The company initiated preemptive research and development after identifying SST as an indispensable technology for power transmission in the AI era, culminating in the successful development of a 22.9kV 1.05MVA-class unit capable of direct connection to urban distribution networks in 2022. This milestone has secured a competitive advantage in next-generation power conversion, positioning the company to capture emerging opportunities as the market matures.

The SST represents a significant technological leap, utilizing power semiconductors to precisely control voltage and current while maintaining the insulation functions of conventional transformers. Industry analysts note that the field presents high barriers to entry due to the sophisticated power control capabilities required. According to global market research firms, the SST market is projected to grow at an average annual rate exceeding 40 percent, driven by power infrastructure modernization. The large-capacity segment for data centers operating at voltages of 22.9kV and above remains nascent, with only a limited number of companies worldwide pursuing commercialization and demonstration projects—a gap Hyosung intends to close through accelerated early-mover efforts.

Beyond technological innovation, Hyosung Heavy Industries has been aggressively expanding its physical footprint in the United States. The company has invested a total of USD 300 million in the acquisition and expansion of its ultra-high-voltage transformer manufacturing facility in Memphis, Tennessee. Once the ongoing expansion is completed, the facility is expected to rank among the largest ultra-high-voltage transformer production sites in the country. Additionally, Hyosung has established a joint venture with Quanta Services, a leading North American energy infrastructure solutions provider, to locally produce 72.5kV to 800kV ultra-high-voltage circuit breakers in Pennsylvania. This strategic move makes Hyosung the first Korean power equipment manufacturer to secure local production capabilities for both ultra-high-voltage transformers and circuit breakers in the U.S. market.

"Driven by the expansion of AI and data centers, power infrastructure has now become a core industry directly linked to national security," said Chairman Cho. "Building on Hyosung Heavy Industries' U.S. manufacturing facilities and technological prowess, we must establish ourselves as an irreplaceable, essential long-term partner in stabilizing the American power grid."

Quanta Services brings extensive business presence and a customer network across the United States, providing infrastructure solutions for large-scale power demand facilities. By combining Quanta's industry-leading infrastructure solutions with Hyosung's technological expertise, the company aims to strengthen its competitive edge in the data center power infrastructure market. Hyosung Heavy Industries plans to integrate its accumulated technological capabilities, robust U.S. local production base, and next-generation power grid technologies—including SST, Energy Storage Systems (ESS), STATCOM, and High Voltage Direct Current (HVDC) systems—to establish itself as a key player in this rapidly evolving sector.

The company's dual strategy of pioneering advanced grid technology and building a strong local manufacturing presence reflects a broader industry trend in which power equipment suppliers are racing to meet the unprecedented electricity demands of AI infrastructure. As U.S. utilities and data center operators grapple with grid reliability challenges, the ability to deliver high-performance transformers and breakers domestically has become a strategic imperative, positioning Hyosung to play a central role in the nation's power modernization efforts.