Strengths of a Cool Climate and Abundant Power Infrastructure
1.38 Trillion-Won Investment Expected to Boost Jobs and Revitalize the Local Economy
Hamyang County in South Gyeongsang Province is accelerating its transition into a future-oriented industrial city by attracting a large-scale AI data center.
This project, which is being promoted with a total project cost of approximately 1.38 trillion won, is drawing attention as a key growth engine that will drive the transformation of the local industrial structure, job creation, and the expansion of local fiscal revenues.
◆ Data centers, core infrastructure in the digital era
A data center is a core facility that stores and processes the vast amount of data generated by companies, governments, and institutions. High-performance servers, network equipment, storage systems, and security devices are clustered together and operated 24 hours a day, supporting the stable operation of cloud services, websites, and applications.
As demand for data processing has recently surged, data centers have established themselves as essential infrastructure underpinning cloud computing, big data analytics, and artificial intelligence (AI) technologies. In particular, with the spread of cloud services, more companies are using data center-based services instead of their own on-premise servers, which is further accelerating industry growth.
◆ Development trends and location requirements
Data centers consume massive amounts of electricity, and cooling systems are essential to lower server heat. Accordingly, power efficiency and cooling cost reduction are regarded as key factors that determine operational competitiveness.
Recently, there has been a growing trend toward operating data centers based on renewable energy to reduce carbon emissions and enhance sustainability. Global companies such as Google, Microsoft, and Apple are leading the green transition by operating renewable energy-based data centers.
In addition, to ease the concentration of large-scale power-consuming facilities in the Seoul metropolitan area, the government is promoting a distributed energy policy. However, due to issues such as workforce supply and network latency, the concentration in the metropolitan area continues.
Because data centers manage data, which is a company’s core asset, stable power supply, security, and disaster safety are key criteria for site selection. The fire at the Pangyo SK C&C data center, which caused service disruptions at Kakao, clearly demonstrated the importance of safety and location conditions.
◆ Why Hamyang... Outstanding natural conditions and power infrastructure
Located along the Baekdudaegan mountain range, Hamyang County is one of the regions with relatively low annual average temperatures nationwide, which is advantageous for reducing cooling energy. It also has strengths in terms of stability because of its low earthquake risk.
In particular, the Hyucheon General Industrial Complex is situated in a basin-shaped terrain that makes security management easier, and it has a 154 kV transmission line built in the past to supply power to a steel mill, as well as conditions for supplying more than 100 MW of idle power. These factors provide optimal conditions for operating a data center.
Orid Korea is participating in this project and has secured technological expertise and operational capabilities in cooperation with Mondrian AI. The county also plans to foster specialized talent through industry-academia cooperation with local universities and to create a foundation for local young people to grow into high-income professionals.
Group photo from the mutual growth agreement signing ceremony between Hamyang-gun and Korea Electric Power Corporation
◆ Building a hyperscale facility housing 200,000 servers
The Hamyang AI data center will be developed as an ultra-large (hyperscale) facility requiring more than 200,000 servers and approximately 100 MW of power.
Looking at the project’s progress, in 2024 the permitted business type for the Hyucheon General Industrial Complex was changed to information service business, and in 2025 Hamyang County and Korea Electric Power Corporation signed a power supply agreement.
In February 2026, the project passed the power system impact assessment and is currently in the design phase. After completing the permitting process in the first half of this year, the project is being pushed forward with the goal of starting construction in the first half of 2027.
◆ Expectations for revitalizing the local economy and transforming the industrial structure
A project official predicted, "Once construction of the data center gets into full swing, we expect such a strong boost to the local economy that there may even be a shortage of accommodation due to the influx of outside workers."
An official from Hamyang County stated, "The construction of this AI data center will become a symbolic milestone that demonstrates the potential for change in our industrial structure," adding, "We will concentrate our administrative support to ensure that the investment proceeds successfully."
The attraction of an ultra-large AI data center is closely linked to national policy goals such as balanced regional development and the expansion of the digital industry base. Attention is focusing on whether Hamyang County can leap forward as an advanced industrial hub.
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