U.S. Turns to Korean Ship Engines for Data Centers... Growing Hopes for Prolonged Shipbuilding Stock Boom
by Lee Changhwan
Published 29 Apr.2026 08:35(KST)
Updated 29 Apr.2026 10:23(KST)
Ship Engine Orders for U.S. Data Centers Continue
Potential for Prolonged Boom in Korean Shipbuilding Stocks
Due to the artificial intelligence (AI) revolution, data center construction in the United States has surged. However, the supply of power equipment has not kept pace, leading domestic shipbuilders to expand exports even of engines originally used for ships. As exports of ship engines increase, expectations are rising that the shipbuilding sector will overcome concerns about having peaked and will continue to enjoy a long-term boom.
Ship Engine Orders for U.S. Data Centers Continue
According to the financial investment industry on April 29, the SOL Shipbuilding Equipment Exchange-Traded Fund (ETF) posted a 49% increase in its share price in April, as of the previous day. During the same period, the KODEX Shipbuilding TOP10 ETF rose by 34.7%, the SOL Shipbuilding TOP3 Plus ETF by 33.2%, and the TIGER Shipbuilding TOP10 by 31.3%. Compared to the KOSPI, which rose by 31%, and the KOSDAQ, which rose by about 15% during April, shipbuilding-related ETF returns were even more outstanding.
In particular, the SOL Shipbuilding Equipment ETF outperformed the index by a wide margin. This is because the ship engines produced by companies included in this ETF-such as Hanwha Engine, HD Hyundai Marine Engine, STX Engine, and HD Hyundai Marine Solution-are expected to be used in AI data centers, and this expectation was reflected in the share prices. Hanwha Engine’s share price surged by 82.6% just this month, while STX Engine (87.2%), HD Hyundai Marine Engine (52.3%), and HD Hyundai Marine Solution (50.9%) also saw dramatic increases.
After news broke on April 16 that Finnish ship engine company W?rtsil? had signed a contract to supply 40 gas engines for a data center project in Ohio, U.S., domestic companies related to ship engines began to receive significant attention. Then, on April 22, HD Hyundai Heavy Industries announced, via public disclosure, that it had signed its first contract to supply land-based power generation engines worth 627.1 billion won to the U.S. energy infrastructure company Aperion Energy Group. This triggered a sharp increase in the share prices of related companies.
AI-focused data centers use gas generators as their main power source. With demand for large gas turbines for these generators soaring, the three major manufacturers-GE Vernova, Mitsubishi Heavy Industries, and Siemens Energy-have been unable to keep up with demand. As a result, data center companies have started to adopt power supply methods utilizing medium-sized gas engines and ship engines, creating opportunities for Korean companies to benefit.
Yang Seungyun, an analyst at Eugene Investment & Securities, explained, "It takes about three to four years for large gas turbine suppliers to deliver, but for engine manufacturers, it is only about two years, which gives them a speed advantage. If supply bottlenecks at gas turbine companies persist, demand for land-based power generation engines will continue to rise."
Potential for a Long-Term Boom in Korean Shipbuilding Stocks
As a result, the valuations of ship engine manufacturers such as Hanwha Engine, HD Hyundai Marine Engine, and STX Engine are soaring. STX Engine produces land-based power generation engines (four-stroke engines) that can be used for data centers, and Hanwha Engine is scheduled to complete a medium-speed engine plant for its four-stroke business in July. HD Hyundai Marine Engine manufactures and supplies turbochargers, which are core components of four-stroke engines.
Interest is also high in HD Hyundai Marine Solution, which has exclusive rights to after-market (AM) services for the engine division of HD Hyundai Heavy Industries. Due to the fact that power generation engines operate 24 hours a day, the need for replacement parts and maintenance is much more frequent than for ship engines, making it possible to generate steady high-value-added revenue.
Experts believe that this "engine boom" will not be a one-off positive event. This is because, in addition to the global ship market facing demand for eco-friendly replacements, a massive new market for AI-driven power demand has emerged. Baek Juho, an analyst at Hyundai Motor Securities, stated, "If additional orders for four-stroke engines for U.S. data centers continue, this will lead to upward revisions in earnings forecasts and valuation rerating for related companies, resulting in further share price increases."
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