Cloud Offensive... Kakao Strengthens Industry-Academia Cooperation and Naver Sets 'Gak'

[Asia Economy Reporter Kang Nahum] Naver and Kakao are accelerating their push into the cloud market by building data centers across the country.

According to industry sources on the 20th, Kakao is constructing a data center on a 18,383㎡ site within the Hanyang University Campus Innovation Park. This will be a hyperscale data center (a massive data center capable of operating over 100,000 servers), with a total capacity to house 120,000 servers. The amount of data that can be stored will reach 6EB (exabytes). The completion is targeted for 2023.

Through the construction of the data center, Kakao plans not only to fulfill its core role of data management and operation but also to contribute to industry-academia cooperation and regional economic revitalization. The company intends to continuously explore programs to foster future new industries centered on AI, big data, the Fourth Industrial Revolution, and cloud business, together with talented individuals. Kakao is also pushing forward with the construction of a second data center in Jeju, where its headquarters is located.

Naver began site preparation work last October for the construction of its second data center in Sejong, named ‘Gak Sejong.’ This is the second data center following the first, ‘Gak Chuncheon.’ Scheduled for completion in December next year, Gak Sejong will be a hyperscale data center with over 100,000 servers, six times larger than Gak Chuncheon.

Gak Sejong will be built in two phases on a total area of 293,697㎡. Phase 1 involves an investment of 650 billion KRW to construct a data center with a total floor area of 142,771㎡, consisting of three basement levels and four above-ground floors. The Phase 1 data center will include a server building (101,112㎡), an operations building (37,764㎡), a dormitory building (3,782㎡), and a reception building (111㎡).

The construction of data centers by Naver and Kakao is a move to capture the cloud market. In the case of Naver’s Gak Sejong, it has been decided to operate mainly for providing external cloud services and related data processing. Naver, considered one of the two major players in the cloud market alongside KT, aims to widen the gap with domestic competitors, solidify its position as a top two player in the domestic market, and based on this, establish itself as a top three player in the Asia-Pacific and Japanese markets.

Kakao, which had been seen as having a weakness due to the lack of its own data centers, has resolved this risk through the construction of the new data center. Taking this opportunity, the company plans to accelerate its entry into the public cloud sector. Currently, Kakao is gradually increasing its market share in the public sector by introducing the cloud-based AI customer response platform ‘Kakao i Connect Talk’ in Sejong and Jeju cities.