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HD Hyundai Electric and LG CNS Join Forces on AI Data Center Power

The two Korean companies will combine electrical infrastructure and digital expertise to pursue AI data center projects and automate manufacturing operations in Korea and overseas.

HD Hyundai Electric and LG CNS have formed a partnership to pursue power infrastructure projects for artificial intelligence data centers and expand the use of smart manufacturing technology.

The companies signed a memorandum of understanding at HD Hyundai’s Global R&D Center in Seongnam, Gyeonggi Province. The agreement brings together HD Hyundai Electric’s capabilities in power equipment and distribution systems with LG CNS’s experience in designing, constructing and operating data centers.

Under the partnership, the companies plan to provide power and distribution equipment for AI data centers as integrated packages. They will also jointly identify projects and market their combined capabilities to customers in Korea and overseas. The arrangement positions the two businesses to address the increasingly complex electrical requirements of facilities built to support AI computing.

The partners will examine how LG CNS’s artificial intelligence, cloud and data technologies can be incorporated into HD Hyundai Electric’s power monitoring platform. The goal is to improve the efficiency of power operations at data centers, where stable electricity supply and detailed monitoring are critical to maintaining large-scale computing systems.

Their cooperation will extend beyond data centers to HD Hyundai Electric’s own manufacturing operations. The equipment maker will provide production-site data that LG CNS can use to apply manufacturing AI, logistics automation and process automation technologies. The companies intend to conduct technical exchanges and demonstration projects as they develop the system.

One early focus will be HD Hyundai Electric’s Cheongju Power Distribution Campus. The companies plan to increase automation in production and logistics there while developing an integrated equipment-monitoring system. They also aim to use the resulting model to improve smart factory operations and establish standardized processes across HD Hyundai Electric’s global manufacturing sites.

HD Hyundai Electric Chief Executive Kim Young-ki said the partnership is intended to raise the operating efficiency of data center power infrastructure while creating new growth opportunities. LG CNS Chief Executive Hyun Shin-gyoon said his company would support the digital transformation of manufacturing sites and expand cooperation in global markets.

The agreement reflects a broader push by Korean industrial and technology companies to combine physical power infrastructure with software and data capabilities as investment in AI computing increases. For both partners, the memorandum creates a framework to pursue commercial projects while testing automation technology inside an operating manufacturing network.