HD Construction Equipment is expanding into the fast-growing US data center power market with a 390 billion won ($291.4 million) engine supply deal.
The company said Wednesday it signed an agreement with US power infrastructure solutions provider ERock to supply 22-liter, high-efficiency long-block gas engines from 2027 through 2028.
ERock will integrate the partially assembled engines into generator sets to supply power to hyperscale data centers operated by US tech companies.
The deal marks HD Construction Equipment’s push beyond its traditional engine business into data center power generation, as surging AI demand strains electricity grids and lengthens grid connection times across North America.
To support the expansion, the company will open a new engine plant in Gunsan, North Jeolla Province, later this month. The facility will serve as a production hub for power generation engines in the 1- to 3-megawatt range.
HD Construction Equipment plans to launch a 37-liter, 1.5-megawatt engine in 2027, followed by a 77-liter, 3-megawatt model in 2028, targeting growing demand for high-output power systems.
The expansion comes as investment in data center infrastructure accelerates. Dell’Oro Group expects cumulative global data center capital expenditure to exceed $3 trillion by 2030, while Fortune Business Insights projects the data center generator market to nearly double from $10.34 billion in 2026 to $19.72 billion by 2034.
“This contract is a meaningful achievement that validates our engine technology in the new data center power market,” an HD Construction Equipment official said. “We will expand our presence across the global data center and distributed power generation markets.”
hyejin2@heraldcorp.com
