On February 26, according to Interesting Engineering, the South Korean government has approved the construction of the world’s largest artificial intelligence (AI) data center in Jeollanam-do Province. The facility will be equipped with cutting-edge AI computing capabilities, with a power capacity of up to 3,000 megawatts (3GW), surpassing the existing large-scale AI data centers operated by tech giants like Microsoft, Google, and Amazon. It will even be three times the size of the “Stargate” data center project planned by OpenAI and SoftBank in Texas, USA.
The AI data center will have an initial investment of $10 billion, with a total investment potentially reaching $35 billion. The project is scheduled to begin in 2025 and is expected to be completed by 2028. The data center will integrate advanced cooling infrastructure, extensive fiber-optic bandwidth, and energy load management systems to ensure optimal efficiency. It will also include renewable energy production, equipment supply, and research and development (R&D) plans aimed at long-term technological sustainability. Once operational, the AI data center is expected to generate $3.5 billion in initial revenue and create approximately 10,000 jobs, significantly boosting the local economy.
Currently, the investment company overseeing and operating the project, Stock Farm Road (SFR), has signed a memorandum of understanding with Jeollanam-do Governor Kim Young-rok.
SFR’s expertise in energy-to-intelligence (e2i²) technology will enable the seamless integration of AI-driven energy management solutions. The Jeollanam-do government has pledged full support by obtaining licenses, approvals, and securing essential resources. Additionally, government initiatives will focus on sustainable practices, including advanced cooling technology and renewable energy integration to minimize environmental impact.
SFR was co-founded by Brian Koo, the grandson of LG Electronics founder Koo In-hwoi, and Amin Badr-El-Din, the founder of BADR Investments. Both leaders have emphasized the initiative’s role in enhancing South Korea’s position in the global tech industry and have stated that this AI data center will revolutionize the country’s role in digital infrastructure and AI.
Badr-El-Din said, “This is not just a technological milestone. It’s a strategic leap for South Korea’s global technological leadership.” He also highlighted the collaboration with SFR and the Jeollanam-do government, calling it a crucial step in laying the foundation for AI innovation. The facility will serve as the backbone for next-generation AI technologies, supporting large global companies, cloud computing enterprises, and hyperscale data center businesses. Therefore, in addition to meeting domestic demand, the AI data center will also cater to the global market.
Furthermore, SFR plans to establish similar AI data center projects in Asia, Europe, and the United States within the next 18 months. These future efforts aim to expand high-speed AI computing capabilities across different regions, foster a globally connected digital ecosystem, and promote the development of the next generation of AI technologies, serving hyperscalers and AI developers.
Research indicates that by 2030, the global data center market is expected to reach $438.3 billion, driven by growing demand for AI and cloud computing. South Korea’s new AI data center will play a key role in shaping the future of digital infrastructure, advancing AI research, high-performance computing, and large-scale data processing.
Jingwen Ong, research manager at DC Byte, pointed out that if South Korea’s AI data center can control costs and be completed on time, it will have a significant competitive advantage.
However, this ambitious AI data center project faces numerous challenges. Firstly, the construction of AI data centers requires significant energy and water resources. According to research from Epoch AI, as AI models become increasingly complex, the demand for chips and electricity will rise sharply. By 2030, developing the most advanced AI models could require more than 5 GW of power. SFR has already signed a cooperation agreement with Jeollanam-do Province to address related supply issues. However, like other global data center projects, supply chain issues with Nvidia AI chips and construction materials could delay progress. Additionally, in Asia, the project will face competition from regions such as Malaysia, Thailand, and India, where land and labor costs are more favorable.
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