South Korea is set to build one of the largest data centers for artificial intelligence. An investor group plans a facility that will cost up to $35 billion and use 3 gigawatts of power. This project comes amid strong global demand for AI services, even as some question the long-term pace of the AI boom.
The data center will be located in the southwestern region of South Korea, far from Seoul. It is expected to help overcome challenges faced in the United States, where affordable land and access to ample power are in short supply. The project is led by Stock Farm Road, an investor group founded by Brian Koo and Amin Badr-El-Din. They plan to invest $10 billion initially and up to $35 billion over time.
Project Overview
Investment and Capacity
The project will use 3 gigawatts of power. This capacity is nearly three times that of a comparable facility in Texas, which is part of the Stargate project funded by OpenAI and SoftBank Group. In most cases, a single data center site rarely exceeds 1 gigawatt. This higher capacity will allow the installation of many AI chips that require a large amount of electricity.
Investor Details
Stock Farm Road is the group behind the project via its subsidiary investment firm Fir Hills. Brian Koo, the grandson of the founder of the South Korean conglomerate LG, and Amin Badr-El-Din, the founder and CEO of BADR Investments, are the founders of the company. The two have strong ties to major businesses in South Korea and international markets.
The plan will start with an investment of $10 billion and has the potential to grow to $35 billion in the long term. The project shows the investors’ belief that South Korea has the ingredients needed for a world-class facility.
Market Context and Demand
Global AI Demand
The new data center comes at a time when the demand for AI computing is rising quickly. Power availability has become a key issue, as advanced AI models require more chips and energy. Research from Epoch AI suggests that the largest AI models may need over 5 gigawatts of electricity by 2030. The planned facility is a response to these growing needs.
Competition and Supply Challenges
Other regions, including the United States, Europe, and parts of Asia, are also planning similar projects. In the U.S., limited access to affordable land and reliable power supply poses a major challenge.
At the same time, there are global supply chain issues and shortages of AI chips, particularly from Nvidia, that can delay projects.
Countries such as Malaysia, Thailand, and India are also investing in large data centers, increasing competition for market leadership.
Timeline and Future Steps
Construction Schedule
Construction of the data center is set to begin early this year. The project is expected to be completed by 2028.
The site in South Korea’s southwestern region benefits from an agreement with South Jeolla province. This deal will help ensure access to energy, water, and other essential resources.
Project Impact
Once completed, the facility will serve both domestic and international markets. The center will support high-powered AI applications and is expected to boost economic growth. It will create job opportunities in construction, engineering, and technology.
Local companies may gain improved access to advanced computing power, which can speed up digital services and innovation.
Challenges and Future Prospects
Operational Challenges
Building a data center of this size comes with several challenges. Supply chain issues and shortages of AI chips may slow progress.
The investor group has taken steps to secure local agreements to assist with essential resources, but challenges remain common in large-scale projects of this nature.
Future Market Impact
Industry experts believe that if the project is completed on schedule and within budget, it will have a significant positive impact. Jingwen Ong, a research manager covering the Asia-Pacific region, noted that timely and cost-effective execution could open a valuable opportunity. The new facility has the potential to set new standards for AI data centers and support the next generation of digital services.
Conclusion
South Korea’s plan to build a $35 billion AI data center with 3 gigawatts of power marks a major step in expanding digital infrastructure. The project addresses the global need for high-powered AI computing and positions the country as a leader in digital innovation.
With strong investor backing and a clear timeline, the facility is set to boost economic growth and enhance AI capabilities both in South Korea and around the world.