South Korean Power Equipment Maker HD Hyundai Electric Announces 198 Billion Won Investment to Expand Distribution Capacity for AI Data Centers

South Korean power equipment manufacturer HD Hyundai Electric disclosed its preliminary consolidated financial results for the third quarter of 2026 on October 27: sales reached 1.1799 trillion won, operating profit was 284.5 billion won, and net profit stood at 184.2 billion won. Compared to the same period last year, sales grew by 18.5% and operating profit increased by 15.1%, while net profit declined slightly by 3.6%. Quarter-over-quarter, sales rose by 3.3%, but operating profit and net profit decreased marginally by 0.9% and 10.6%, respectively.

The primary driver of this quarter's performance growth was the distribution equipment and new business sector, whose sales surged 85.8% year-on-year. This significant increase was fueled by expanding demand for distribution transformers centered around the semiconductor industry, rising sales of distribution equipment in the North American market, and the full recognition of revenue from the battery energy storage system (BESS) project on Anjwa Island in Sinan, Jeollanam-do, South Korea, which was secured in December last year. Additionally, the rotating machinery sector saw sales grow by 16.5% year-on-year, supported by robust domestic demand.

On the same day, HD Hyundai Electric also announced its 'Phase 2 Investment Plan for the Cheongju Distribution Campus' to proactively address the expansion trend of large-scale power infrastructure projects centered on AI data centers. The company plans to invest a total of 198 billion won over the next 26 months to build a production cluster for distribution equipment and expand its manufacturing capabilities. This move directly responds to a structural shift in the current market: major North American tech companies are increasingly adopting long-term package contracts that bundle power transformers with distribution equipment.