UK private capital investor Actis Capital and South Korean conglomerate GS Group have announced the formation of a joint venture to build a US$315 million data center in Seoul.
Actis will take up a 75% stake in GS Group’s construction subsidiary GS E&C and operate the 21 MW data center to meet the data consumption demands in Seoul, where smartphone penetration is 95%, one of the highest in the world.
“Seoul has an insatiable appetite for data, but is struggling to meet demand with fewer than five large-scale non-owner-occupied data centers currently available in the market,” said Brian Chinappi, the Head of Asia Real Estate at Actis.
“This investment, where land and grid power have been secured in an area popular with cloud service providers, will directly help to address that challenge,” he added.
The data center will be GS E&C’s tenth data center project. Reaching eight storeys, the data center will house 1,600 high density racks for clients who are cloud service providers (CSPs), and 400 low density racks for clients who are colocation customers.
“We are pleased to be working with GS E&C, an experienced local contractor that has built 185MW of existing internet data center capacity. Together this project will deliver another critical piece of digital infrastructure for Korea,” said Mr. Chinappi.
The new building will be built to Uptime Tier 3 standard and located in Seoul’s Pyeongchon Cluster, the district with the highest CSP concentration in the city.
Actis’ investment is part of its ongoing plan to expand on digital infrastructure in Asia and Africa.
In May, the firm announced it will establish a US$250 million pan-African data center platform. And in 2019, Actis invested US$180 million in China’s Chayora Holdings to develop hyperscale data center facilities.