GS Bets Big on AI Data Centers... Considering 1.2GW Facilities in Dangjin and Donghae

Accelerating AI Infrastructure Business

Mobilizing Capabilities of Power Affiliates and GS Engineering & Construction

Negotiating Land and Scale with the Government

"Specific Plans Not Yet Determined"

GS Group is making a full-scale entry into the artificial intelligence (AI) data center business. Amid the government's call for companies to expand regional investment, GS is reportedly considering Dangjin in South Chungcheong Province and Donghae in Gangwon Province as candidate sites, and is pursuing the construction of ultra-large AI data centers on the gigawatt (GW) scale.

GS CI.

According to the industry on June 26, GS is in discussions with the government regarding land and the scale of the project for establishing a domestic AI data center. It is known that the company is strongly considering building AI data centers with a capacity of 1.2 GW each in Dangjin, South Chungcheong Province and Donghae, Gangwon Province. The target completion year is 2030.

GS recently established 'GS AI Infra' as a subsidiary under its holding company and has begun to accelerate its efforts to foster the AI data center business as a future growth engine. The company’s strategy is to secure a leading position in the core infrastructure business of the AI era by leveraging its capabilities across the entire value chain, from power generation and data center construction to large-scale infrastructure operation.

Dangjin, which is being discussed as a candidate site, is home to a 2.4 GW liquefied natural gas (LNG) combined cycle power plant operated by GS EPS. In Donghae, GS Donghae Power, a subsidiary of GS E&R, owns a 1.19 GW coal-fired power plant. By building data centers near these power plants, GS believes it can reduce the burden of constructing transmission networks through direct power consumption in the generation region.

In particular, GS Donghae Power is reportedly operating at only about 30% of its capacity due to delays in expanding the power transmission network connecting the east coast and the Seoul metropolitan area. If an AI data center is established, it is expected to simultaneously utilize idle power generation facilities and expand local investment.

GS also highlights that it already possesses the core competencies needed for the AI data center business. Power generation affiliates such as GS Power, GS EPS, and GS E&R are capable of stably supplying large-scale electricity, while GS Engineering & Construction and Xi C&A have accumulated experience in constructing and operating data centers.

However, a key variable for the business is whether the government, which emphasizes expanding the use of renewable energy, will permit the construction of large-scale AI data centers based on power from thermal power plants. There is also a possibility that the investment region or business plan may be partially adjusted depending on the outcome of negotiations with the government.

A GS official stated, "We plan to actively establish strategies, consolidate business capabilities, and expand partnerships to materialize the AI data center business," adding, "Specific sites and scale have not yet been determined."

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