South Korea will push to build a 120-megawatt data center in the southern industrial city of Pohang, North Gyeongsang Province, with an estimated investment of 1.5 trillion won (equivalent to $1.12 billion) by the year 2027, as announced by the Ministry of Trade, Industry, and Energy.
According to the ministry, they have entered into a memorandum of understanding (MoU) with Pohang city and North Gyeongsang Province and the state-run Korea Electric Power Corp., as well as SK ecoplant, DCT Telecom Group. and KB Asset Management. on the establishment of a data center at an industrial complex in Pohang.
The collaborative endeavor envisions the construction of four separate 30-megawatt data center facilities on the campus within the specified timeframe. Furthermore, local government bodies in North Gyeongsang Province and Pohang have pledged financial incentives to support this ambitious project.
The Pohang data center initiative aligns with the Korean government’s strategy to promote the construction of data centers outside the metropolitan areas of Seoul and Gyeonggi Province in order to diversify electricity usage. Presently, roughly 60 percent of all data centers are concentrated in Seoul and Gyeonggi Province.
The Pohang data center’s landing station will establish direct connectivity with Japan’s Fukuoka landing station, with future plans to connect to other landing stations in the United States and Europe. This strategic positioning will give Korea a competitive advantage in attracting global big data companies.
Last month, the ministry also 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 to facilitate the construction of the new solar-powered data center complex in Korea’s southwestern region of Jeolla, Haenam district.
