HD Construction Equipment lands $122M US data center engine deal

HD Construction Equipment signed a $121.9 million agreement on Nov. 10 to supply gas power generation engines to US power system integrator Power Solutions International.

The two-year transaction covers 22-liter natural gas engine long blocks, the company said in a regulatory filing to the Korea Exchange. Deliveries are scheduled to begin Jan. 1, 2027.

The deal equals 4.38% of HD Construction Equipment's recent annual revenue. The figure is pegged to 2025 revenue of 3.78 trillion won ($2.77 billion) prior to its corporate restructuring.

Under the agreed terms, the buyer will remit a 10% cash advance payment. The remaining 90% balance will follow progressive delivery schedules through Dec. 31, 2028.

The transaction marks the Korean manufacturer's second major North American utility contract within five weeks. The two agreements push its cumulative regional engine intake past $407 million.

HD Construction Equipment secured a separate 387.93 billion won ($285.55 million) gas engine order from Texas microgrid developer Enchanted Rock on Oct. 7. That agreement also targeted decentralized power units.

Combined, the two transactions total 553.44 billion won ($407.44 million) in binding commitments. Both buyers supply turnkey power stations to mission-critical infrastructure across the United States.

North American electricity grids face severe interconnection queues. Data center operators now routinely wait three to seven years for high-voltage substation hookups from regulated transmission utilities.

Developers are turning to reciprocating natural gas engines to bypass grid queues. Onsite engines provide prime baseload electricity while serving as continuous backup capacity during distribution line curtailments.

Power Solutions International will package the 22-liter engine blocks into finished generator enclosures. The units will deploy under the company's long-term power supply programs for industrial customers.

The American integrator operates under its Power Boost 2030 commercial plan. Securing multiyear cylinder block supply guarantees production visibility amid tight global casting and machining schedules.

HD Construction Equipment completed a 116.8 billion won ($85.9 million) engine facility in Gunsan on Oct. 28. The site provides dedicated factory footprint for large-scale generator units.

The 62,700-square-meter Gunsan campus houses automated assembly lines. It has capacity to produce 1,250 units of one-to-three-megawatt generator engines each year.

The site also produces 120 defense combat engines and 1,460 megawatt-hours of industrial battery packs annually. Autonomous mobile robots manage component staging across all assembly bays.

The company plans to expand its gas generation portfolio from Gunsan. Commercial production of a 37-liter, 1.3-megawatt engine designated the DX37 begins in the first half of 2027.

Larger platform introductions will follow the initial run. A 77-liter, three-megawatt model enters volume output in 2028, followed by a 50-liter unit in 2029.

HD Construction Equipment emerged in January following the statutory merger of HD Hyundai Construction Equipment and engine builder HD Hyundai Infracore. The combination centralized heavy industrial manufacturing.

The group reorganized its mechanical engine operations into the Power Solutions Business Division. Management set a formal revenue target of 2.5 trillion won for the division by 2030.

Initial commercial dispatches for the Power Solutions International contract begin on Jan. 1, 2027. The formal contract delivery schedule runs through Dec. 31, 2028.

The regulatory filing does not settle why early market summaries cited an intake figure of $118.9 million, and the company has not published foreign exchange or service breakdowns explaining the gap.