GS Group, POSCO Form 'AI Data Center' Alliance to Target North American and Asian Markets

GS to develop a 2.4 GW data center in Donghae
POSCO to supply customized steel from the design stage
"Shorten construction time and cut costs... explore overseas markets"

GS Group and POSCO have joined forces to tap the artificial intelligence data center (AIDC) market. The two companies plan to combine GS Group's capabilities in building and operating data centers with POSCO's steel materials technology to reduce construction time and costs and expand their business into overseas markets, including North America and Asia.

GS Group and POSCO said on the 11th that they had signed a memorandum of understanding (MOU) on strategic cooperation in the AIDC business at GS Tower in Gangnam-gu, Seoul. About 10 key officials from the two companies attended the signing ceremony, including GS Group Vice Chairman Hong Sunki and POSCO President Lee Heegeun.

POSCO President Lee Heegeun (left) and GS Group Vice Chairman Hong Sungi pose for a commemorative photo at a signing ceremony for an MOU on cooperation in the AI data center business at GS Tower in Gangnam-gu, Seoul, on the 11th. GS Group

Under the agreement, GS Group will oversee the entire process of developing and operating data center infrastructure, including business planning, power supply, design and construction, and liquid cooling. POSCO will provide steel materials and customized solutions needed to build data centers. The two companies plan to minimize delays in equipment supply and optimize designs and materials to shorten construction periods and reduce costs.

GS Group is building a large-scale data center at the Bukpyeong 2nd General Industrial Complex in Donghae, Gangwon Province, through its dedicated subsidiary, GS AI Infra. It plans to complete the facility in phases starting in 2028, with capacity of 1.2 GW, and add a further 1.2 GW in the future to bring the total to 2.4 GW. In September, it announced plans to invest about 15 trillion won in the first phase of the project, and last month it obtained a building permit for its first 100 MW-class data center.

GS Group plans to draw on its capabilities in power generation and energy, including GS E&C's design and construction expertise and GS Caltex's liquid-cooling technology, for its data center business. It will also leverage GS Global's overseas network to expand its global operations.

POSCO plans to adopt an "EVI (Early Vendor Involvement)" model, moving beyond the conventional approach of supplying steel after data center designs are complete and participating from the initial design stage. It aims to shorten construction periods by recommending steel specifications suited to structures and equipment, reviewing processing methods and performance, and supplying materials in line with construction schedules.

Data center construction is expected to use POSCO's PosMAC, a highly corrosion-resistant alloy-coated steel sheet, as well as electromagnetic shielding materials and high-efficiency electrical steel. PosMAC will be used in building interior and exterior materials and cable trays to reduce corrosion and improve durability. Electromagnetic shielding materials will help reduce electromagnetic interference in information technology (IT) equipment such as servers, while high-efficiency electrical steel will be used to improve the energy efficiency of transformers and generators.

This year, POSCO established a Future Demand Development Office to identify steel demand in emerging industries, including data centers and power grids. It is also considering ways to apply to data center operations the large-scale power generation and heating and cooling efficiency technologies it has developed through operating steel mills.

The two companies plan to expand their business overseas after securing results through cooperation on large-scale domestic data center projects. They will jointly target markets in North America and Asia by leveraging POSCO's global steel supply chain and GS Global's overseas network. To this end, they will establish a working-level council to develop plans for building equipment supply chains, advancing technology, and jointly responding to overseas projects.

GS Group Vice Chairman Hong Sunki said, "AI data centers are an area that requires the combined capabilities of various industries to ensure a stable power supply, rapid construction, and efficient operation. Through this cooperation, we will strengthen our business competitiveness and identify new growth opportunities in the global AI infrastructure market."

POSCO President Lee Heegeun said, "The rapidly growing AI data center market is a key market of the future that will drive new global demand for steel and materials. By combining POSCO's next-generation steel solutions and design support capabilities with GS Group's infrastructure value chain, we will secure a firm leading position in the global AIDC market."

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