South Korea's Pohang 600 Billion Won AI Data Center Receives Government Approval Acceleration Support

en.Wedoany.com Reported - On October 28, the South Korean government decided to advance the exemption procedure for local fiscal investment review for an artificial intelligence data center project in Pohang City, North Gyeongsang Province, with a total investment of 600 billion won. The project is located in Gwangmyeong General Industrial Complex, Ocheon-eup, Nam-gu, Pohang City, with a planned power receiving capacity of 40 megawatts and an IT load capacity of 32 megawatts. It has now entered the construction phase and is scheduled to commence operations in January 2028.

This administrative approval adjustment involves North Gyeongsang Province's 4 billion won equity contribution arrangement for the project's special purpose company. According to the project's shareholder agreement and financing conditions, the local government must complete its contribution by the end of March 2027. The relevant exemption matters will be processed through professional institution review and the competent authority's decision-making procedures.

Project construction funding consists of 150 billion won in equity capital and 450 billion won in debt financing. In July 2026, Korea Growth Finance Investment Management Corporation selected the project under its Regional Revitalization Investment Fund No. 9 investment program. The project loan agreement was signed in September, and financing funds will be invested in phases according to construction progress.

A groundbreaking ceremony was held on July 20, and as of the end of September, 7.66% of the construction progress had been completed. According to the construction plan, the project is expected to be completed in November 2027, followed by a two-month trial operation. The completed facility will provide server room space, power supply, and related data center services to artificial intelligence enterprises.