Construction in Wangjuk, the Third New City
First Large-Scale Investment Under the New Administration
Building a 92,000-Square-Meter Data Hub
Kakao will invest 600 billion KRW to build a large-scale second data center in the Wangjuk Urban High-Tech Industrial Complex, located in Namyangju, Gyeonggi Province, which is part of the third phase of new city development. The data center, which will begin construction next year and is scheduled for completion in 2029, will be Kakao's second self-operated data center following Ansan in Gyeonggi Province, and is planned to serve as an artificial intelligence (AI) digital hub.
On June 13, Kakao announced that it had signed an investment memorandum of understanding (MOU) for the establishment of the so-called "Digital Hub" at the Gyeonggi Provincial Government Office. The signing ceremony was attended by Kim Dongyeon, Governor of Gyeonggi Province; Joo Gwangdeok, Mayor of Namyangju; Lee Hanjoon, CEO of Korea Land and Housing Corporation (LH); and Jeong Shina, CEO of Kakao.
Under this agreement, Kakao plans to invest up to 600 billion KRW to build the "Digital Hub" with a total floor area of approximately 92,000 square meters in the Wangjuk Urban High-Tech Industrial Complex in Namyangju, Gyeonggi Province. After completing administrative procedures such as obtaining construction permits, construction is scheduled to begin in 2026, with completion targeted for 2029.
This investment agreement is drawing attention as it marks the first large-scale investment by a major domestic conglomerate since the inauguration of the Lee Jaemyung administration. During his presidential campaign, President Lee pledged to designate Namyangju as a National Advanced Strategic Industry Zone as a key policy for the Gyeonggi region. The government and Kakao reportedly plan to foster the Wangjuk High-Tech Industrial Complex site in Namyangju as a core domestic AI hub. The southern part of Gyeonggi Province, where Samsung Electronics and SK Hynix factories are located, is envisioned as a "semiconductor belt," while the northern part is planned to become an "AI belt." On this day, President Lee is holding his first meeting with the heads of the five major conglomerates, including Lee Jaeyong, Chairman of Samsung Electronics, and Chey Taewon, Chairman of SK Group. The establishment of the Kakao AI Digital Hub is expected to serve as a catalyst for further large-scale investments by conglomerates.
Kakao is currently operating the Kakao Data Center in Ansan, Gyeonggi Province. Located on the Hanyang University ERICA Campus, this facility has a total floor area of 47,378 square meters and is a hyperscale data center capable of housing more than 100,000 servers. Kakao began building its own data centers after experiencing a major service outage caused by the 2022 fire at the Pangyo Data Center.
Through the construction of the data center, Kakao aims to prepare for the era of widespread AI adoption and to ensure stable service operations. The Digital Hub to be built in the Wangjuk Urban High-Tech Industrial Complex will be an AI data center capable of accommodating high-density servers for AI and future technologies. In addition, it will be constructed as an eco-friendly data center that uses renewable energy and improves energy efficiency.
Kakao also plans to carry out initiatives for mutual growth to revitalize the local economy through the Digital Hub. During the construction of the data center, local manpower and resources will be prioritized to contribute to the regional economy. Kakao will also establish a mutual growth fund to support digital transformation and market expansion for small business owners and to operate programs that address local issues.
Joo Gwangdeok, Mayor of Namyangju, stated, "I am very pleased that this large-scale investment by Kakao will allow us to fully launch the grand project of transforming Namyangju's industrial ecosystem, which was announced in January."
Jeong Shina, CEO of Kakao, said, "The Kakao Digital Hub will be built as a core infrastructure for the popularization of AI, and we will continue to cooperate for the development and mutual growth of the Namyangju region."
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