An extensive data center complex that is powered by solar energy is planned to be built in Korea’s southwestern region of Jeolla, Haenam district.
The Ministry of Trade, Industry and Energy said it signed a Memorandum of Understanding with the municipal government of Jeollanam-do province, Haenam district, Korea Electric Power Corporation, Jeonnam Development Corporation, and 7 investment companies on Thursday to facilitate the construction of the new complex.
The investment companies are planning to encourage the construction of 25 data center facilities, each with a capacity of 40 megawatts, totaling 1 gigawatt by 2037. During the period, an estimated 10 trillion won (US$ 7.58 billion) in private investments is projected to be allocated for expediting the establishment of the data centers and associated infrastructure.
The municipal government of Jeonnam, in collaboration with the Jeonnam Development Corporation, has committed to backing the implementation of renewable energy projects and technologies for the upcoming data centers. They consider the region as a suitable place to help achieve the RE100 global initiative committed to the transition toward utilizing 100% renewable electricity.
As of last year, out of the total 20.9 gigawatts of electricity generated from solar power in Korea, over 40% came from the southwestern Jeolla region, where the new complex is being situated.
The Korean government anticipates the successful attraction of the new data center will encourage the dispersion of data centers, which have been predominantly concentrated in the capital regions of the Seoul metropolitan area, Incheon, and Gyeonggi province.
According to the ministry, around 60% of data centers in Korea are currently situated in the capital region. Furthermore, 86% of newly constructed data centers by 2029 are planned to be located within these capital areas.
Research and Markets projected the Korea data center market size overall to surpass US$6.74 billion by 2028, climbing at a CAGR of 9.89% from 2022 to 2028.
