AI Data Center Worth 872 Billion Won to Break Ground in Gunsan This October

Investment Agreement Signed with SGC AI Infra
Expansion from 60MW at Launch to 300MW Capacity

With the establishment of a large-scale artificial intelligence (AI) data center in the Gunsan National Industrial Complex in North Jeolla Province, the region's data industry infrastructure is expected to expand significantly.

A view of Gunsan City Hall.

On August 25, Gunsan City announced that it had signed an investment agreement with SGC AI Infra at the North Jeolla Provincial Government Office for the construction of an AI data center worth 872 billion won. This project will involve building the data center on a site of about 115,700 square meters within the second Gunsan National Industrial Complex, with groundbreaking scheduled for October.

Established through a 100% investment by SGC Energy to promote the AI data center business, SGC AI Infra is pushing forward with the project in collaboration with KT, Korea Investment & Securities, and others.

The initial phase involves creating a 60-megawatt (MW) modular data center, which is planned to begin operations in the first quarter of 2028. The company intends to gradually expand the facilities in subsequent phases, ultimately increasing the center's total capacity to 300 MW.

The data center is a facility that houses large-scale computer equipment necessary for providing AI services. In particular, graphics processing units (GPUs), which are used for AI training and services, consume a significant amount of electricity and generate substantial heat, making stable power supply and cooling systems vital components.

The business operator explained that the Gunsan project site is well-suited to meet these requirements. Thanks to its proximity to the sea, deep ocean water can be utilized for the cooling system, and the site can also be supplied with electricity from an on-site power plant.

SGC AI Infra will provide the data center buildings, as well as power and cooling systems, and will operate under a "Powered Shell" model in which tenant companies install their own IT equipment such as GPUs. This approach helps the operator reduce the heavy investment costs associated with equipment replacement, while allowing tenant companies the flexibility to assemble IT devices to suit their needs.

This investment is expected to serve as an opportunity to broaden the digital industry base in Gunsan. In particular, if it is linked with Dreamline’s ultra-high-speed submarine cable landing station—another investment agreement previously signed by Gunsan City—it will lay the groundwork for jointly utilizing data transmission infrastructure and the data center.

Kim Jaejoon, Mayor of Gunsan, stated, "We expect that SGC AI Infra's AI data center will create synergy with Dreamline’s ultra-high-speed submarine cable landing station," adding, "We will work to ensure that the investment revitalizes the regional economy by expanding local talent recruitment and encouraging participation from local businesses."

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