A Kakao data center worth 490 billion KRW will be established in Jangseong-gun, Jeollanam-do.
On the 26th, the county announced that it signed an investment agreement for the establishment of the data center at Jeonnam Provincial Office with the Ministry of Trade, Industry and Energy, Jeollanam-do, Korea Electric Power Corporation, Kakao Enterprise Co., Ltd., Pine & Partners Asset Management Co., Ltd., and KB Securities Co., Ltd.
Jangseong-gun signed an investment agreement for the establishment of a data center on the 26th at the Jeonnam Provincial Government Office with the Ministry of Trade, Industry and Energy, Jeollanam-do, Korea Electric Power Corporation, Kakao Enterprise Corp., Pine & Partners Asset Management Corp., and KB Securities Corp. [Photo by Jangseong-gun]
Under this agreement, an investment of 490 billion KRW will be made to build a cloud data center with an area of 33,000㎡ and a capacity of 40 megawatts (MW) on the site of the Advanced 3 District in Nam-myeon, Jangseong-gun.
Construction is scheduled to start this year and is targeted for completion in 2026. Kakao Enterprise Co., Ltd. will participate in design, equipment construction, and overall operation.
The establishment of the data center is expected to create about 100 jobs and generate tax revenue.
It will also enable the activation of various advanced industries such as artificial intelligence and big data.
A data center is a computer data management facility that operates network servers and other equipment. It is essential for data-based industries but consumes a large amount of electricity. Since large corporate data centers are concentrated in the metropolitan area, there is a need for distributed placement.
This investment agreement is attracting attention as the first case realizing the Ministry of Trade, Industry and Energy’s ‘Data Center Regional Distribution Policy,’ which aims to decentralize large corporate data centers from the metropolitan area to local regions.
The Ministry of Trade, Industry and Energy and the Gwangju-Jeonnam Headquarters of Korea Electric Power Corporation plan to apply special measures for power supply to support backup power for the data center.
Jeollanam-do and Jangseong-gun intend to provide administrative and financial support necessary for the construction of the data center.
Baek Myung-jin, Vice President of Kakao Enterprise Co., Ltd., said, “We will actively cooperate to ensure the successful implementation of the data center regional distribution policy.”
Kim Han-jong, the county governor, said, “We sincerely welcome the establishment of the Jangseong-gun data center, which lays the foundation for the nation’s new growth industries, together with 50,000 residents. We will spare no support to ensure its successful construction and to lead regional economic growth and job creation.”
Jangseong = Asia Economy Honam Reporting Headquarters, Reporter Jo Han-gyu baekok@asiae.co.kr
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