Seoul: HD Hyundai Electric Co., a South Korean electric equipment manufacturer, announced its ambitious target to secure US$4.22 billion worth of orders in 2026, driven by increasing demand from artificial intelligence (AI) data centers.

According to Yonhap News Agency, the company's updated annual order target marks a 10.5 percent increase from last year's goals, as outlined in a recent press release. Based on this target, HD Hyundai Electric aims to achieve sales of 4.35 trillion won ($3.05 billion), which indicates an 11.8 percent rise compared to its sales target for 2025.

The company highlighted a surge in global demand for electric equipment, as businesses ramp up investments in electrification across various sectors such as vehicles, ships, and infrastructure projects for renewable energy development and data centers, all fueled by the expanding AI industry. To address this growing demand, HD Hyundai Electric plans to expand its production facilities in South Korea and the United States. Additionally, the company intends to diversify its business portfolio and export markets.

In a move to bolster its presence in the United States, HD Hyundai Electric finalized a 98.3 billion-won agreement with an undisclosed U.S. utility company to deliver 765-kilovolt (kV) high-voltage transformers by 2028. These advanced 765-kV transformers are designed to transmit power at higher voltages than conventional 345-kV units, thereby reducing power loss and increasing transmission capacity by up to five times.

For the entire year of 2024, HD Hyundai Electric reported sales of 3.32 trillion won. During the January-September period of the previous year, the company's sales experienced a 16 percent year-on-year increase, reaching 2.92 trillion won. The company's full-year earnings results for 2025 are anticipated to be announced next month.