en.Wedoany.com Reported - Gangwon Special Self-Governing Province Governor Woo Sang-ho signed a business agreement with Donghae City and South Korean conglomerate GS Group to establish the Donghae AI data center. The data center will be built on a 231,000-square-meter site within the Bukpyeong 2 General Industrial Complex and is expected to begin operations in 2028, supported by a 30 trillion won ($19.9 billion) investment announced by GS in June.
According to a press release from Gangwon Special Self-Governing Province, the AI data center will have an initial capacity of 1.2 GW, with an additional 1.2 GW expected to be added by 2029, bringing the total capacity to 2.4 GW. GS will utilize existing power infrastructure near the data center, which is currently operating at only 30% capacity due to delays in expanding transmission infrastructure.
Woo Sang-ho stated that AI data centers are core infrastructure for the AI industry and a growth foundation for enhancing the competitiveness of future industries. The Donghae AI data center campus will be Gangwon Province's first AI industry project and a starting point for building an AI industry ecosystem. He added that, following the principle of enterprises focusing on investment and the provincial government handling administration, active support will be provided at the speed required by businesses. To this end, the provincial government will accelerate permitting for the data center and related projects while taking responsibility for providing necessary infrastructure such as water and electricity.
The construction of the Donghae AI data center will help South Korea achieve its goal of becoming one of the world's top three AI powerhouses (alongside the United States and China). This goal is supported by a 65 trillion won ($49 billion) private sector commitment to AI development, announced in 2024 and set to continue through 2027. Recently, President Lee Jae-myung announced three national mega-projects involving semiconductors, AI data centers, and physical AI, aimed at driving South Korea's expansion beyond the metropolitan area to other regions. These mega-projects will involve participation from numerous companies, including Samsung Electronics, SK Group, Naver, and GS Group.
By 2025, the value of South Korea's AI-optimized data center market has reached $580 million. Mordor Intelligence estimates that the market could grow to $1.89 billion by 2030. This data was derived before Lee Jae-myung announced these mega-projects, with AI data centers alone expected to attract $356 billion in investment.
