South Korea launches public-private AI data center alliance

Science Minister Bae Kyung-hoon gives a presentation at a policy briefing on the government's "three megaprojects" initiative | Image courtesy: Blue House
July 29, 2026 at 7:37 PM GMT+8

The South Korea Ministry of Science and ICT has launched a public-private alliance to coordinate the development of 18.4 GW of artificial intelligence data centers (AIDCs), bringing together government agencies and technology companies as it seeks to expand AI infrastructure and related industries. 

This AI Data Center Alliance is part of the government’s “three megaprojects” initiative announced in June and follows a plan unveiled last month to designate AIDCs as a national strategic industry. 

The alliance will be jointly led by the Ministry of Science and ICT and the private sector. Jung Jai-hun, chief executive of SK Telecom and head of the Korea Information & Communication Promotion Association, will serve as the first private co-chair. The chair group includes 12 companies, including Naver Cloud, Samsung SDS, SK Telecom, NHN Cloud, LG Electronics, LG Uplus, KT, Kakao, LS Electric and FuriosaAI as reported by Chosun Biz.

The alliance has been divided into three divisions with one company taking the lead in the development of demand, supply and foundation. A separate export task force will develop strategies for Korean companies to form consortia and pursue overseas AI training, inference data center projects, including package deals covering design, construction, equipment supply and operations in markets such as the United Arab Emirates.

Its demand division, led by Naver Cloud, will focus on verifying and commercialising domestic cloud and AI data center solutions while using large-scale test beds to help companies build references for overseas projects.

The supply division, headed by LG Electronics, will work on localising key technologies, including IT equipment, power and cooling systems, and improving compatibility and standardisation across data center components.

The foundation division, led by Kakao, will examine regulatory issues, workforce development and bottlenecks such as permitting, site selection and electricity supply.

The platform will coordinate work across the AI data center value chain, including cloud technology, power infrastructure, cooling systems and regulatory issues. It will also support the development of test beds and industrial clusters to help Korean companies commercialise AI data center technologies and expand overseas.

Korea JoongAng Daily reported that more than 400 representatives from government, industry, academia and research institutions attended the launch ceremony in Seoul, including officials from the Ministry of Science and ICT, the Ministry of Trade, Industry and Energy, the Financial Services Commission and the Ministry of Land, Infrastructure and Transport.

The Financial Services Commission is reviewing financing support for large-scale AI data center investments through the Public Growth Fund. The Ministry of Trade, Industry and Energy plans to support technology development, testing and market expansion for materials, components, power and cooling technologies used in AI data centers.