South Korea plans to spend more than KRW 1,000 trillion (US$649 billion) by 2035 to build a national network of artificial intelligence data centres. The phased rollout, backed by major domestic firms, establishes a state-directed infrastructure model that could reshape how governments fund and regulate large-scale technology projects.
Phased capacity targets and corporate roles
The government and private sector will construct 8.4 gigawatts of combined data centre capacity by 2029. An additional 10 gigawatts will come online between 2030 and 2035.
SK Group will lead the physical build-out by developing multiple facilities across the country. GS Group plans to concentrate its operations in a dedicated hub in Gangwon Province. Naver will site a 1 gigawatt facility in Sejong to support cloud services and generative AI research.
Industrial supply chain and testing ecosystem
Government officials said the facilities serve as critical infrastructure for downstream manufacturing sectors. The project will drive demand for semiconductors, servers, power systems, cooling technologies, and networking equipment. Domestic companies can use the sites to test and commercialise AI models before pursuing international markets. Public agencies managing similar infrastructure rollouts often consult frameworks like the AI Learning Path for Policy Makers to align procurement standards with technical requirements.
Why this matters for government professionals
The initiative demonstrates how public funds can coordinate private sector deployment when regulatory and energy constraints are addressed upfront. Procurement teams should monitor how South Korea structures vendor contracts, especially regarding shared infrastructure costs and domestic content requirements. Agencies evaluating their own compute expansion strategies can reference the AI for Government resource to benchmark governance models against emerging industry standards.
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