Seoul – September 09, 2026 -- Hyosung Heavy Industries has developed the world's first 22.9kV, 1.05MVA-class Solid State Transformer (SST) capable of direct connection to urban distribution networks, giving the South Korean manufacturer an early lead in a market projected to grow more than 40% annually.
AI-driven power demand pushes Hyosung to scale U.S. production
The company has invested USD 300 million to acquire and expand an ultra-high-voltage transformer manufacturing facility in Memphis, Tennessee, which will become one of the largest such production bases in the United States once expansion completes.
Hyosung has also formed a joint venture with North American energy infrastructure firm Quanta Services to locally produce 72.5kV to 800kV ultra-high-voltage circuit breakers in Pennsylvania. The move makes Hyosung the first Korean power equipment manufacturer to secure local U.S. production for both ultra-high-voltage transformers and circuit breakers.
SST technology targets nascent large-capacity data center segment
Hyosung began preemptive R&D on SST technology, identifying it as critical for power transmission and distribution in the AI era, and completed the 22.9kV unit in 2022. SST uses power semiconductors to precisely control voltage and current while retaining the insulation function of conventional transformers, a field with high technological barriers to entry.
The large-capacity SST market for data centers requiring 22.9kV and above remains in its early stages, with only a limited number of global companies pursuing commercialization and demonstration projects.
Chairman links grid infrastructure to national security
Hyosung Chairman Hyun-Joon Cho said power infrastructure has become a core industry directly tied to national security amid the expansion of AI and data centers, and that the company must position itself as an essential long-term partner in stabilizing the American power grid.
Hyosung Heavy Industries plans to integrate its U.S. manufacturing base with next-generation grid technologies including SST, Energy Storage Systems, STATCOM and High Voltage Direct Current systems to expand further into the U.S. AI and data center power market.