Warburg Pincus, a renowned global growth investor, has announced that the firm has, in partnership with DC Connects, a South Korean data center developer, and Wide Creek AMC, a Seoul-based asset manager, acquired a greenfield site in Yongin City to develop an 80MW hyperscale data center. The nearly 58,000 square meter facility is strategically located in close proximity to Gangnam and Pangyo, often referred to as the “Silicon Valley of South Korea”, as the area is home to major technology firms with strong demand for hyperscale data centers.
South Korea’s data center and AI infrastructure industry
According to Arizton Advisory & Intelligence, “The South Korea data center market size will witness investments of USD 9.90 billion by 2030, growing at a CAGR of 12.07 percent during the forecast period.” Shedding light on drivers of growth, it says, “The growing acceptance of digital platforms, along with increased use of advanced technologies—including IoT, big data, AI, and 5G connectivity—has spurred the South Korean market.” Moreover, South Korea has around 12 undersea cables that connect China, Japan, Singapore, Malaysia, the Philippines, Taiwan, India, Egypt, the UAE, the UK, Spain, the US, and others.
“South Korea represents one of the most compelling markets for next-generation digital infrastructure investment. As Asia’s fourth-largest economy and one of the most advanced ICT ecosystems globally, the country continues to experience accelerating demand for data capacity, driven by AI adoption, cloud migration, and the government’s ‘Digital New Deal’ initiative. At the same time, the Greater Seoul area faces a limited pipeline of large-scale, well-permitted sites with secured power, creating a highly attractive supply–demand dynamic,” said Dongkun Cho, Principal of Warburg Pincus, explaining the choice of location.
Jaewoo Choi, Founder and CEO of DC Connects, added, “With 80MW of capacity, best-in-class cooling and power systems, and built-in flexibility for rapid deployment, this data center will deliver the reliability, efficiency, and high-density capabilities that tenants need to operate at scale. This project brings together global expertise, local knowledge, and the dedication of our homegrown team. Together with our partners, we are committed to building secure, future-ready data centers that support our tenants’ long-term growth.”
Hosung Lee, Investment Director of Wide Creek Asset Management, said, “Located in southern Greater Seoul, the asset will be the only hyperscale data center expected to be operational in the area within the next three years, offering exceptional accessibility and industry-leading specifications to clients. The new data center is designed to serve as the optimal choice for clients pursuing AI adoption and digital transformation.”
Construction has officially commenced following the groundbreaking of the landmark project. In a press release, Warburg Pincus revealed that the data center facility will feature a high-efficiency air- and liquid-cooling system capable of supporting high-density artificial intelligence (AI) applications ranging from 60kW to 200kW. Equipped with fan walls and coolant distribution units (CDUs), the facility will be fully prepared to meet the needs of global cloud service providers and enterprise clients deploying AI and machine learning (ML) capabilities. The facility is targeted to be ready for service by 2027.