Pohang City Selected as Site for OpenAI and NeoAI Cloud's Global AI Data Center

Pohang Partners with OpenAI and NeoAI Cloud,
Aiming to Become a Global AI Leader in the Spotlight
Mayor Lee: “We Will Mobilize All Efforts to Propel South Korea’s Rise as an AI G3 Powerhouse Centered on the AI Data Center”

Pohang City has been officially selected as the final site for the construction of a global AI data center, a project jointly promoted by OpenAI and NeoAI Cloud.

NeoAI Cloud has been continuously collaborating with Pohang City to establish the global AI data center since signing an MOU in June of this year.

This achievement marks a historic milestone, positioning Pohang as a key hub leading the transformation of South Korea’s AI industry. It is expected to bring significant changes to the regional economy and the overall industrial structure.

Pohang City has proactively laid the groundwork to become a global AI city by spearheading major initiatives such as attracting the global AI data center, building a data center in connection with the six oceans and continents, and hosting the Apple R&D Support Center. These strategic investments and the concentration of talent and industrial capabilities have culminated in this success.

Pohang’s selection as the final site is attributed to the city’s distinct strengths: vast industrial demand from national core manufacturing sectors such as steel and secondary batteries; a pool of top-tier talent centered around POSTECH and Handong University; world-class research and development infrastructure including the synchrotron radiation accelerator, cryo-electron microscope, and the Robot Convergence Research Institute; and a stable power supply linked to the Uljin nuclear power plant. These factors together provide optimal conditions for the construction of the data center.

The establishment of the AI data center is expected to have far-reaching effects beyond mere infrastructure development, impacting Pohang and South Korea as a whole. With investments worth trillions of won, related industries such as construction, equipment, and operations will be revitalized, and new jobs will be created in AI data center operations, security, and development. Furthermore, as AI is integrated with the steel, secondary battery, and bio industries, new engines for growth will be secured in areas such as smart manufacturing, new material development, and pharmaceutical research. Local companies will also benefit from enhanced access to cloud and AI computing resources, expanding their opportunities for global expansion.

The city plans to work closely with the government, OpenAI, and NeoAI Cloud to ensure the seamless progress of the AI data center construction, focusing all administrative and regulatory support on the project. In particular, a dedicated “Fast-Track Permitting Task Force” will be established to expedite all necessary approval processes, ensuring that the AI data center is built as quickly and securely as possible.

Going forward, Pohang City aims to complete a full-cycle AI innovation ecosystem centered around the AI data center, encompassing industry, economy, and society. The city also plans to establish the “AI Expressway Model,” leading national innovation.

For the past half-century, Pohang has driven South Korea’s industrialization through the steel industry. Now, with AI at the forefront, Pohang is set to become a strategic hub propelling South Korea’s advancement as an AI G3 powerhouse and to emerge as a global AI-leading city attracting worldwide attention.

Mayor Lee Kangdeok emphasized, “Attracting the global AI data center by OpenAI and NeoAI Cloud signals South Korea’s leap toward becoming an AI powerhouse. We will concentrate all administrative resources, including power supply and site support, to ensure the world-class AI data center is built swiftly. This will serve as a historic turning point for South Korea’s rise as an AI G3 nation.”

On October 1, the Ministry of Science and ICT and OpenAI signed a memorandum of understanding (MOU) to accelerate innovation in AI infrastructure. In this collaboration, OpenAI announced plans to establish large-scale AI data centers in the southeastern region (Pohang) and the southwestern region (Jeonnam).