The boom in construction of artificial intelligence (AI) data centers is accelerating capacity expansion and order intake at domestic companies producing power generation engines. Demand is rising for generation facilities that can supply electricity reliably to operate large-scale data centers 24 hours a day. Engine technologies developed in Korea for ships and construction machinery are now attracting attention in the AI data center power supply market.

On the 28th, HD Construction Equipment held a completion ceremony for its new engine plant at the Gunsan National Industrial Complex in North Jeolla Province. The plant, built on a site of about 62,700㎡ at a cost of KRW 116.8 billion, can produce 1,250 power generation engines in the 1–3MW (megawatt) range per year, as well as 120 engines for armored vehicles. It also has an annual battery pack production capacity of up to 1,460MWh, equivalent to batteries for about 9,400 electric buses.

In particular, HD Construction Equipment unveiled on the same day its 37L displacement power generation engine “DX37” (an engine with a displacement of about 37,000cc). The product was developed to meet surging demand for high-output generators for AI data centers. Starting in the first half of next year with the 37L-class (1.3MW) model at the new Gunsan plant, HD Construction Equipment plans to successively mass-produce extra-large power generation engines: a 77L-class (3MW) model in 2028 and a 50L-class (2MW) model in 2029.

Recently, the company completed starting tests of its 3MW-class diesel engine “DX77” and has begun verification of its performance and durability. Earlier this month, HD Construction Equipment also signed a contract worth about KRW 390 billion with U.S. power infrastructure company ERock for the supply of gas engine long blocks. A long block is the main engine assembly excluding fuel and ignition systems, and these units will be supplied for power facilities at U.S. data centers between 2027 and 2028. The company aims to increase revenue from its engine business from KRW 1.3 trillion last year to KRW 2.5 trillion by 2030.

Other domestic engine manufacturers are also moving to tap the AI data center power generation market. HD Hyundai Heavy Industries has won two orders this year for power generation facilities for U.S. data centers, totaling KRW 1.5831 trillion. In September, it decided to invest KRW 833.6 billion in Ulsan to build a new onshore power generation engine plant with annual capacity of 3GW (gigawatts). In July, STX Engine signed a business agreement with AI company Dinotisia to build a defense AI data center and supply associated power generation facilities.

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