# HD Construction Equipment power engine expansion

> Developing situation record from CLSTR: https://clstr.news/situations/hd-construction-equipment-power-engine-expansion
> Updated: 2026-10-28T03:00:01.000Z. Sources: 2. Developments: 2.

HD Construction Equipment has initiated a significant expansion of its power generation engine business to meet rising demand from AI-driven data centers. Following a $291.4 million contract to supply high-efficiency gas engines to US-based ERock, the company has completed a new manufacturing facility at its Gunsan Campus in South Korea.

The new plant, representing an investment of 116.8 billion won, utilizes advanced technologies such as assembly robots and autonomous mobile robots. The facility is designed to produce 1,250 large-scale power generation engines annually, alongside defense engines and battery packs. To support the data center market, the company plans to begin mass production of 37-liter class engines in the first half of next year, with larger models following through 2029.

## Timeline

### 2026-10-28: HD Construction Equipment opens new engine plant in Gunsan

HD Construction Equipment opened a new engine and battery pack plant in Gunsan, targeting defense, power generation, and AI data center markets with a 2.5 trillion won revenue goal by 2030.

2 sources. https://clstr.news/cluster/hd-construction-equipment-opens-new-engine-plant-in-gunsan

### 2026-10-07: HD Construction Equipment wins $291.4 million US data center engine deal

HD Construction Equipment signed a $291.4 million deal to supply gas engines to ERock for US hyperscale data center power generation between 2027 and 2028.

2 sources. https://clstr.news/cluster/hd-construction-equipment-wins-2914-million-us-data-center-engine-deal

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Cite as: HD Construction Equipment power engine expansion. CLSTR, https://clstr.news/situations/hd-construction-equipment-power-engine-expansion