[Report] LG Uplus Unveils Next-Generation AIDC Strategy: "Targeting 5 Trillion Won in Cumulative Orders"

Adopting PMDC Method to Accelerate Construction

"AIDC, an AI Infrastructure Integrating One LG"

On June 5, a large crane was moving materials at the LG Uplus Paju Artificial Intelligence Data Center (AIDC) construction site in Paju, Gyeonggi Province. Construction workers were working along the wall of AIDC Building 1, and a substation supplying electricity was located beyond Building 1. Walking along the safety passage into Building 1 revealed a design capable of operating both air and liquid cooling systems simultaneously. Located just an hour's drive from Seoul, the Paju AIDC is still under construction with completion scheduled for next year. An LG Uplus representative emphasized, "Because we can use both air and liquid cooling at the same time, we can respond flexibly to the rapidly changing AI technology environment and the diverse demands of the market."

On the 5th, a large crane is moving materials at the LG Uplus Paju Artificial Intelligence Data Center (AIDC) construction site in Paju, Gyeonggi Province. Photo by Gong Byung-seon

On June 7, LG Uplus announced its next-generation AIDC infrastructure strategy and stated that it aims to achieve cumulative orders of 5 trillion won related to the AIDC business by 2030. The company also explained that it plans to grow its annual revenue by about 15 to 20 percent on average. Since last year, LG Uplus has been building an AIDC in Paju City with a total floor area of about 150,000 square meters, which is equivalent to the size of approximately 21 soccer fields. The Paju AIDC consists of four main buildings and annexes. For Building 1, which is scheduled to be completed in June next year, all contracts have already been finalized.

LG Uplus is committed to solving issues such as the construction speed and heat generation of the AIDC based on trust. At a press conference held at the Paju AIDC construction site on June 5, Jung Sookkyung, Head of AIDC Business at LG Uplus, said, "Trust is the most important. LG Uplus has operated data centers without interruption for 27 years, following the Five-Nine Principle," adding, "Under the motto of 'AI protecting AI,' we are preparing next-generation operations that will aggregate data and provide agentic AI." The Five-Nine Principle means maintaining an operating rate of 99.999%, including maintenance and equipment replacement time.

In terms of construction speed, LG Uplus plans to introduce the standard Prefabricated Modular Data Center (PMDC) construction method. This approach involves standardizing and pre-manufacturing key facilities and then assembling them on site. According to LG Uplus, this allows for flexible expansion from small to large scale and can shorten construction time by several months compared to conventional methods. Hyungkyun Ahn, Head of Enterprise AI Business Group at LG Uplus, stated, "It takes three years just to build an AIDC. There could be delays in responding to demand, and there are also limitations from a national competitiveness perspective," and added, "Timely expanding infrastructure to meet demand will be a key factor going forward."

Hyungkyun Ahn, Head of Enterprise AI Business Group at LG Uplus, is making a presentation at a press conference held on the 5th at the LG Uplus AI Data Center construction site in Paju, Gyeonggi Province. Provided by LG Uplus

LG Uplus is also addressing power and scale issues according to demand. Including the existing Pyeongchon 1 and 2 Centers, the company has secured the largest-scale power infrastructure in the Seoul metropolitan area. Operating an AIDC requires more than 200 MW of power infrastructure, and according to LG Uplus, the only AIDC in the metropolitan area that can meet this requirement is in Paju. In addition to in-house construction, the company plans to respond to the surging demand for AI by providing tailored supply based on design, build, and operate (DBO) projects through collaborations with global partners and asset management firms.

The most significant challenge for AIDCs—cooling—is to be addressed with next-generation cooling technology. The Paju AIDC is being built as a hybrid structure, the first in Korea to support both air and liquid cooling on a hyperscale. From the architectural stage, it has been designed with building load, waterproofing, and piping optimized for liquid cooling to cope with the heat generated by inference-centric GPU servers. Woojeong Lee, Head of AIDC Technical Operations at LG Uplus, explained, "Paju AIDC is prepared to accommodate any server brought in by clients," and added, "The floor-to-ceiling height is also being configured to suit AIDC-specific servers."

LG Uplus is bringing together group affiliates' capabilities for the construction of the Paju AIDC. The air-cooled 'Free Cooling Chiller' for producing cooling water is provided by LG Electronics, and the high-performance uninterruptible power supply (UPS) batteries are supplied by LG Energy Solution. Ahn added, "The Paju AIDC is an 'One LG' synergy that integrates cooling, battery, power facilities, and operational capabilities into an AI infrastructure," and said, "Through the Paju AIDC, we are contributing to strengthening the competitiveness of domestically produced equipment."

This content was produced with the assistance of AI translation services.