"Pohang's Next Industrial Strategy: The Answer Lies in AI Infrastructure"

"A Great Wave Is Approaching to Open a New Future for Pohang"

A critical turning point that will determine the future of Pohang is approaching.

On December 2, 2025, it was reported that a large-scale AI data center project, jointly promoted by global AI companies, Samsung Group, and NeoAI Cloud (formerly Tensorwave Korea), is being considered with Pohang as a strong candidate site.

Although the final site and detailed schedule have not yet been confirmed, if this project becomes a reality, it could fundamentally transform Pohang’s industrial landscape.

According to available information, this is a mega-project with an estimated investment of around 2 trillion won (approximately 1.5 billion US dollars) just for the first phase.

Beyond simply attracting a new facility, the significance lies in its potential as an “industrial transformation investment” that could shape Pohang’s growth trajectory for decades to come.

This also signals that Pohang is being tested by the global market for its potential to be restructured from a traditional manufacturing city into a hub for advanced digital industries.

So, why Pohang? Data centers-especially those specialized in AI-have extremely demanding site requirements.

They require top-tier talent, stable power supply, and substantial industrial data all at once. Pohang is one of the rare cities that offers a relatively balanced combination of these three conditions.

First, there is the talent and research foundation. The pool of science and engineering talent centered on POSTECH and Handong Global University, along with national-level research infrastructure such as the Pohang Light Source and the Institute of Robotics and Convergence, provide a solid base for AI research, development, and application. This environment not only supplies skilled personnel but also enables the industrial application and advancement of AI technologies.

Second, there is the energy infrastructure. AI data centers require a stable supply of large-scale electricity 24 hours a day.

The East Coast power grid, along with nearby nuclear and renewable energy infrastructure, is considered highly competitive in terms of power stability and redundancy. This is one of the most important factors for global data center companies.

Third, there is industrial data. For the past half-century, Pohang has led Korea’s industrialization, centered on the steel industry.

The vast amount of process and manufacturing data accumulated in this process can, when combined with AI, be expanded into smart manufacturing, process optimization, and new material development. Furthermore, data generated in emerging industries such as batteries, hydrogen, and bio are key resources that simultaneously drive demand for generative AI and high-performance computing.

It is important to note that attracting a data center should not be the end goal. It is only the starting point.

The Pohang city government must establish a dedicated system to swiftly support permits and infrastructure development in cooperation with the central government, major corporations, and global AI companies.

If uncertainties in administrative procedures are not minimized, no advantage will easily translate into actual investment.

Furthermore, an open ecosystem must be created around the data center so that local businesses and research institutions can access AI and cloud resources.

Only then can Pohang’s small and medium-sized enterprises narrow the technology gap and advance into global markets. The ultimate goal is to implement a “full-cycle AI innovation model” at the regional level, encompassing industry, economy, and society as a whole.

Pohang is a city that already has experience in industrial transformation. Now is the time to add new growth engines-data and AI-on top of its legacy as the “city of steel.” If the global AI data center becomes the central axis, Pohang can rise as a key hub of the digital industry, driving innovation not only in the southeastern region but also nationwide. We must prepare for this journey together with our citizens, and do so responsibly.