Pohang City Accelerates Early Establishment of Global AI Computing Center, Aiming to Become a Leading AI City

Collaboration Among Companies, Institutions, and Local Governments, Early Groundbreaking...
Full-Scale Expansion of National AI Infrastructure Begins

Pohang City has been holding a series of working-level meetings with related organizations to ensure the successful establishment and early operation of the Global AI Computing Center, aiming to become a leading city in the AI industry.

In June, the city signed an investment memorandum of understanding (MOU) with Gyeongbuk Province, leading domestic and international AI companies, investment firms, and universities for the construction of the Global AI Computing Center, successfully attracting large-scale private investment totaling 2 trillion won.

They are taking a commemorative photo after signing the MOU for the establishment of the AI Computing Center on the 26th of last month. Provided by Pohang City

This project is scheduled to break ground within the year and be completed by 2027. It will be established in the Pohang Convergence Technology Industrial Complex and is set to expand into a 1GW-class ultra-high-performance AI computing infrastructure in four phases.

As a follow-up to this agreement, the city recently held proactive working-level discussions with Korea Electric Power Corporation Daegu Headquarters, Daegu-Gyeongbuk Free Economic Zone Authority, and H Energy, launching comprehensive efforts to expedite the early establishment of the center.

This round of discussions focused on establishing practical foundations for project implementation, including: shortening the evaluation period for the 154kV-class power grid impact assessment and reducing electricity costs; providing eco-friendly electricity supply and responding to RE100; and reviewing issues related to site changes.

Regarding the power grid impact assessment, the city plans to build a cooperative system with KEPCO to ensure the assessment for the construction of a 154kV-class, 40MW power facility can be completed within approximately five months.

Additionally, by establishing a private-led SPC (PFV), the city will expedite the application process for the impact assessment and actively propose to the Ministry of Trade, Industry and Energy the application of a differential electricity rate system and rate reductions in accordance with the Special Act on Distributed Energy.

For eco-friendly power supply, a low-cost power purchase agreement (PPA) method to comply with RE100 was proposed through discussions with H Energy. The city is also considering a customized rate plan to alleviate initial investment costs while securing electricity through long-term contracts, and plans to prepare a roadmap to enable practical implementation.

Regarding the relocation of the AI Computing Center site, the city is comprehensively reviewing the impact on the project schedule and budget. The city plans to seek the optimal alternative by cooperating with the investment promotion and bioindustry departments, with the Digital Convergence Industry Division at the center of these efforts.

Taking this working-level consultation as an opportunity, the city plans to accelerate the construction of AI computing infrastructure based on public-private cooperation and establish itself as a strategic hub for Korea’s AI computing industry.

Mayor Lee Kangdeok stated, "Pohang is rapidly transforming from a steel city into a center for future high-tech industries," and added, "Starting with the Global AI Computing Center, we will make Pohang a leading city of digital innovation and the central hub of AI convergence industries as a K-Artificial Intelligence Cluster."