• HD Hyundai Electric's order backlog reached US$8.5 billion at the end of June, while Jinpan's first-half data-centre orders more than quadrupled
  • HD Hyundai Electric says its backlog covers more than three years, making equipment delivery an earlier consideration in data-centre project planning

The fact

Transformer manufacturers HD Hyundai Electric and Hainan Jinpan Smart Technology are reporting sharply higher data-centre demand as new AI infrastructure increases orders for electrical equipment. HD Hyundai Electric's order backlog reached US$8.5 billion at the end of June, up 23% from six months earlier, Reuters reported. The company expects data centres to account for 16% of new orders in its power business next year, up from 6.3% this year.

HD Hyundai Electric told Reuters its backlog covers more than three years, with much of its production capacity for major power equipment already secured over that period. It is discussing some customer orders for delivery as far out as 2030. Jinpan said its new data-centre orders in the first half of 2026 more than quadrupled from a year earlier, while its related backlog nearly tripled. Transformers convert grid electricity to the voltages required by servers, cooling equipment and site power-distribution systems.

The assessment

A grid connection does not by itself make power usable inside a data centre. Transformers and related electrical equipment still have to arrive, be installed and commissioned. With HD Hyundai Electric’s backlog stretching beyond three years, developers may need to place those orders well before electrical fit-out begins. Leaving procurement too late could put the energisation date at the mercy of factory lead times.

Ordering earlier creates a different risk. Grid schedules, tenant requirements, and site designs can change while equipment is already being manufactured. Therefore, developers have to commit early without knowing that every part of the project will stay on schedule. Reuters does not show how many data centres have actually been delayed by transformer shortages, and HD Hyundai Electric’s backlog includes customers outside the sector.

For BTW readers, secured megawatts are only one part of the delivery schedule. When transformer production is booked years ahead, the arrival and commissioning of that equipment can determine when the power becomes usable inside the facility.

What to watch

Watch transformer delivery times, factory expansion and data-centre-specific orders at HD Hyundai Electric, Jinpan and other suppliers. Named projects that disclose both grid-connection and transformer-delivery dates would show whether equipment availability is delaying energisation. Shorter delivery windows despite rising orders would suggest manufacturers are adding capacity fast enough to ease the pressure.