Using Deep Water from Soyanggang Dam for Cooling... The Site Attracting Interest from Shinsegae and SK [AIDC Coexistence Strategies](17)

ⅥI. Transforming Data Centers
Despite Multiple Failed Auctions, Now Over 10 Companies Are Showing Interest
Utilizing Deep Water from Soyang Lake Dam at an Average Annual Temperature of 9.5°C for Cooling
Highlighting the Advantage of Reducin

Editor's Note
In the era of artificial intelligence (AI), the government is set to build data centers with a combined capacity of 18.4GW by 2035 as part of three major mega-projects. Data centers, which previously served only as facilities supporting IT services, data storage, and data sharing, are now evolving into industrial platforms that produce and supply AI computing resources. However, despite the widespread recognition of data centers as essential infrastructure crucial to national industrial competitiveness, there are still many challenges to be addressed before the expansion of AI data centers (AIDC) can be realized. The Asia Business Daily investigates overseas cases—including Finland, Denmark, Germany, and the Netherlands—where issues such as electricity supply, permits, water resources, and conflicts with local residents have been successfully resolved. The series explores potential solutions for AIDC to coexist as community assets within Korea.

Bird's-eye view of the Gangwon Thermal Energy Convergence Complex. Korea Water Resources Corporation

In June, after exiting the Chuncheon IC of the Jungang Expressway and driving about 20 minutes on a local road, a large construction site fence with the words "Gangwon Water-Thermal Cluster Construction Site" came into view. Dump trucks loaded with dirt were moving back and forth as land reclamation work progressed in full swing. This was the construction site for the Water-Thermal Convergence Complex (Water-Thermal Energy Cluster), being developed by Gangwon Province, Chuncheon City, and Korea Water Resources Corporation with the aim of completing the project by 2028.

The Water-Thermal Convergence Complex, being constructed in the Jin-nae-ri area of Dong-myeon, Chuncheon City, Gangwon Province, is planned to accommodate large-scale AIDC, smart farms, as well as residential, commercial, and business zones on a total site of 816,000 square meters (about 250,000 pyeong). The total project cost is expected to reach 422.3 billion won, with Korea Water Resources Corporation investing 379.6 billion won and 42.3 billion won coming from central and local government funds.

The largest and most central initiative at the Water-Thermal Convergence Complex is the construction of an AIDC. The planned site for the AIDC alone is about 90,000 pyeong, accounting for 35% of the total area. Guided by a representative, the first data center site—spanning approximately 21,000 pyeong—unfolded before my eyes from the on-site observatory. Kim Donggu, Head of the Gangwon Water-Thermal Project Team at Korea Water Resources Corporation, explained, "So far, we have reached 25% completion," adding, "The first data center site is ready to commence construction at any time."

The site of the Gangwon Thermal Energy Convergence Complex development project underway in Dong-myeon, Chuncheon City, Gangwon Province. Korea Water Resources Corporation

"More than 10 companies have visited the site"

Chuncheon City and Korea Water Resources Corporation plan to launch a partial land sale for some of the data center sites by the end of the year. Chuncheon City attempted similar land sales in 2023 and 2024, but the efforts were unsuccessful. However, with global interest in AIDC now rapidly increasing, a variety of domestic and international companies and investors have recently expressed interest in the Gangwon Water-Thermal Energy Cluster, leading to a dramatic shift in circumstances.

Kim added, "To date, more than 10 companies interested in the data center plots have visited the construction site, and some have expressed concrete interest."

According to related industry sources, SK Group, US AI company ReflectionAI (which is jointly pursuing AIDC construction with Shinsegae Group), global asset manager Blackstone, and Chinese e-commerce company Alibaba have all reportedly expressed intentions to acquire land from Chuncheon City and Korea Water Resources Corporation.

Among them, Shinsegae Group and ReflectionAI have demonstrated the most active interest, including their submission of a Letter of Intent (LOI) for investment. Shinsegae stated, "We are reviewing multiple sites, including the Chuncheon Water-Thermal Convergence Complex," and added, "In the second half of the year, we plan to continue practical preparations by establishing a joint venture (JV) with ReflectionAI."

Chuncheon City is currently consulting the government to revise the existing land allocation method. In the Water-Thermal Energy Cluster, which has been designated as a leading investment zone, lots are typically allocated by drawing lots when multiple companies apply. However, as both domestic and foreign companies line up to express investment intentions, Chuncheon City is discussing with the Ministry of Land, Infrastructure and Transport whether to switch to a negotiated contract system that evaluates a company's investment capability and overall contribution, rather than simply drawing lots. This move is intended to select companies that can make a greater contribution to the local community.

Eco-Friendly Method... Expected to Save 64% in Energy

Major corporations are attracted to the Chuncheon Water-Thermal Energy Cluster because it offers the opportunity to build large-scale data centers in an environmentally sustainable way. Here, the data centers use deep water from Soyanggang Dam, which maintains an average annual temperature of 9.5 degrees Celsius, as cooling water—a practice that can dramatically reduce carbon emissions.

Water Thermal Energy Supply System at Gangwon Water Thermal Hybrid Complex. Korea Water Resources Corporation

When Soyanggang Dam generates power, its discharge water averages 3.4 million tons per day and remains extremely cold (ranging from 6.7 to 13.4 degrees Celsius, depending on the season). By using this water for data center cooling, energy savings and significant reductions in greenhouse gas emissions are anticipated. The Water-Thermal Convergence Complex plans to draw in 241,000 tons of water per day from Soyanggang Dam for data center cooling. A project team representative explained, "By using deep water from the dam in the Water-Thermal Cluster data centers, we expect to save about 64% in energy compared to outdoor air cooling methods."

The use of deep water from Soyanggang Dam does not end there. After passing through the data center's heat exchangers, the water’s temperature will rise to approximately 14.5 degrees Celsius. This warmed water will then serve as a heat source for heat pumps in future smart farms. Some of it will also be supplied to nearby water-thermal energy complexes, enabling resident companies to use it for various purposes. Of the 241,000 tons of water used daily in the complex, 161,000 tons will be sent to the Soyanggang water treatment plant and supplied to Chuncheon City, while the remaining 80,000 tons will be returned to the river.

It is estimated that the complex will be able to host approximately 240MW worth of data centers. Facilities with capacities exceeding 50MW are generally referred to as "hyperscalers." There is also the possibility of expanding the developable area for data centers. Kim remarked, "It is possible to supply electricity via the nearby 154kV transmission line," adding, "We plan to expand the rated capacity by 60MW."

Until now, data centers have mostly been concentrated in the metropolitan area, often leading to conflicts with local residents. By contrast, Chuncheon City is proactively working to attract data centers as a driver of local economic development. Since Naver established its first data center, "Gak," in 2013, Chuncheon has emerged as a prominent location for new data centers. Chuncheon is just over an hour away from Seoul, making it highly accessible from the metropolitan area, and features a relatively low average annual temperature of 11.2 degrees Celsius—an ideal environment for data center sites. It is also geologically stable, with no significant earthquake damage reported in decades. These strengths have continued to attract attention, with Samsung SDS opening a data center in Chuncheon in 2019, following Naver.

This series is supported by the Press Promotion Fund from government advertising fees.

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