Beyond Semiconductors, Into Energy: MiCo Targets the AI Data Center Power Market

[Financial News] Hyundai Heavy Industries Power Systems (HPS), a subsidiary of MiCo Group, has completed its acquisition of global heat recovery steam generator (HRSG) specialist NEM Energy. The company is now targeting the global gas power generation market as it responds to growing electricity demand from artificial intelligence (AI) and data centers.
MiCo Group said on the 10th that it completed payment for the acquisition of NEM Energy on the 9th and finalized the acquisition process under the share purchase agreement (SPA).
Through the acquisition of NEM Energy, MiCo Group plans to strengthen its integrated capabilities spanning power-generation equipment design, manufacturing, and supply. The group aims to respond to rising global demand for gas-fired power generation while enhancing its order-winning competitiveness and project profitability.
According to the McCoy Power Report, a power-generation equipment market research firm, NEM Energy ranked first worldwide in cumulative HRSG orders from 1980 through the first quarter of this year.
In North America, large-scale data center construction has continued as generative AI and cloud services expand. Securing a stable power supply has emerged as a major bottleneck to the growth of the AI industry. Demand for gas power generation equipment is therefore rising rapidly, while the order backlogs of major gas turbine manufacturers, including GE Vernova and Siemens Energy, have continued to build over an extended period.
In response to these market conditions, MiCo Group plans to link NEM Energy’s North American customer base with HPS’s large-scale manufacturing capabilities. It also intends to expand production bases in South Korea and Vietnam to improve its ability to supply large North American projects.
Ha Tae-hyung, CEO of HPS, said, "We will combine NEM Energy’s technological expertise and global customer base with HPS’s production capabilities to develop the company into one that can benefit from the growth of the global gas power generation market." He added, "By linking the engineering, procurement, and construction (EPC) capabilities of PLANTEC, a group affiliate, with Mico Power’s solid oxide fuel cell (SOFC) technology, we will expand our business areas. In the long term, we aim to become a comprehensive energy company covering the global energy and environmental markets, moving beyond gas power generation."
[email protected] Kim Hyun-cheol Reporter