Ministry of Industry, Gyeongbuk Province, KEPCO, SK Ecoplant, and Others to Promote Large-Scale Cooperation Project Worth 1.52 Trillion KRW
Domestic First 'Yukyang-guk Linked Data Center Campus' Development with Differentiation and Globalization St
Pohang City is leading the decentralization of data centers across regions by establishing the nation's first 'Global Data Center Campus linked with Landing Stations,' building core infrastructure to drive future advanced industries such as artificial intelligence (AI) and big data, and the digital economy era.
On the 8th, Pohang City signed a memorandum of understanding for investment between administrative and support organizations such as the Ministry of Trade, Industry and Energy, Gyeongbuk Province, Korea Electric Power Corporation, Korea Industrial Complex Corporation, and private investment companies including SK Ecoplant, DCT Telecom, and KB Asset Management regarding the promotion of the "International Submarine Optical Cable and Yukyang-guk Linked Global Data Center Campus" project.
A landing station refers to a network facility that connects international submarine optical cables to terrestrial communication networks.
On the 8th, Pohang City signed a memorandum of understanding (MOU) regarding the promotion of the 'Global Data Center Campus linked with International Submarine Optical Cables and Landing Stations' project with administrative and support organizations such as the Ministry of Trade, Industry and Energy, Gyeongbuk Province, Korea Electric Power Corporation, and Korea Industrial Complex Corporation, as well as private investment companies including SK Ecoplant, DCT Telecom, and KB Asset Management.
The signing ceremony was attended by Mayor Lee Kang-deok, Governor Lee Cheol-woo of Gyeongbuk Province, Cheon Young-gil, Director General of Energy Policy at the Ministry of Trade, Industry and Energy, Kim Tae-ok, Vice President of Korea Electric Power Corporation, Kim Byung-oh, Head of Corporate Support at Korea Industrial Complex Corporation, Park Kyung-il, CEO of SK Ecoplant, Shim Jang-seok, CEO of DCT Telecom, and Kim Hyung-yoon, Head of Alternative Investments at KB Asset Management.
This project is a strategic initiative that Pohang City and Gyeongbuk Province have been closely collaborating on since January with the Ministry of Trade, Industry and Energy, KEPCO, LH, SK Ecoplant, DCT Telecom, and others, in response to the government's policy to expand data centers beyond the metropolitan area due to recent issues such as power system instability and inadequate accident response caused by the concentration of data centers in the metropolitan area.
The project plans to invest 1.52 trillion KRW by 2028 to build four 30MW-class data center buildings on approximately 30,000 pyeong (about 99,000 square meters) of land within the Pohang Blue Valley National Industrial Complex, expecting to create about 5,200 direct and indirect jobs and increase local tax revenue.
Notably, by linking the data centers with the 'international submarine optical cables and landing stations' for the first time in Korea, the project aims not only to achieve the simple expected effect of regional decentralization of data centers but also to enhance global competitiveness by attracting world-class big tech companies, thereby implementing the future vision of establishing a 'Northeast Asia Digital Infrastructure Innovation Hub.'
At the signing ceremony, Pohang City pledged to cooperate comprehensively with the Ministry of Trade, Industry and Energy, Gyeongbuk Province, Korea Electric Power Corporation, Korea Industrial Complex Corporation, and others to support the project’s smooth progress through stable power supply, prompt processing of permits and approvals, and administrative and financial support for infrastructure development.
Private investment companies such as SK Ecoplant, DCT Telecom, and KB Asset Management plan to actively implement follow-up investment plans to ensure the seamless creation of the data center campus ecosystem and related workforce development, thereby revitalizing the local economy and creating new jobs by leveraging their respective expertise.
Park Kyung-il, CEO of SK Ecoplant, said, “We will do our best to ensure that the data center campus investing in Pohang establishes itself as a global digital infrastructure model beyond Korea.”
Cheon Young-gil, Director General of Energy Policy at the Ministry of Trade, Industry and Energy, stated, “The decentralization of data centers is a policy and timely challenge beyond mere power supply issues, related to national balanced development. The government will spare no support to ensure this project sets a model for regional decentralization and becomes a successful global investment model.”
Mayor Lee Kang-deok said, “By creating a data center ecosystem, we will prevent the crisis of regional extinction and take the lead in the K-digital economy. Following the recent designation of a secondary battery specialized complex, attracting the global data center campus to Pohang will further strengthen its position as a mecca of future advanced strategic industries.”
The 'Global Data Center Campus linked with Landing Stations' to be established in Pohang is included in the Blue Valley National Industrial Complex plan within this year and is awaiting final approval from the Ministry of Land, Infrastructure and Transport. Construction is scheduled to begin in the first half of 2024, with plans to proceed with follow-up procedures for data center operation starting with attracting global big tech companies.
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