A newly created public-private partnership looks set to oversee the creation of the world’s largest artificial intelligence (AI) datacentre in South Korea.
Work on the datacentre, which has a projected total cost of $35bn, is set to begin later this year and is expected to create a 3GW (gigawatt) datacentre by the time of its scheduled completion in 2028.
Overseeing the project will be investment company Stock Farm Road, which has signed a memorandum of understanding (MoU) with South Korean governor Kim Young-rok of the Jeollanam-do Province that will pave the way for the site’s development.
“The facility will feature advanced cooling infrastructure, regional and international fibre bandwidth, and the ability to handle significant and sudden variations in energy load,” according to a statement. “It will serve as a foundation for next-generation AI enablement, fostering innovation and economic growth in the region and beyond.”
The statement further claims the project will lead to the creation of 10,000 jobs in a variety of disciplines spanning energy supply and storage, renewable energy production, equipment supply, and research and development.
“This is more than just a technological milestone; it’s a strategic leap forward for Korea’s global technological leadership,” said Stock Farm Road co-founder Amin Badr-El-Din.
“We are incredibly proud to partner with Stock Farm Road and the Jeollanam-do government to build this crucial infrastructure, creating an unprecedented opportunity to build the foundation for next-generation AI.”
Stock Farm Road has a background of using data analytics and AI tools to manage energy resources, and operates its own proprietary energy-to-intelligence platform, known as e2i².
The company said its expertise in this area will come into play during the datacentre’s construction, while other parts of its business will provide access to capital to fund the build.
Meanwhile, the Jeollanam-do government side of the partnership will provide support by enabling the developers to secure the permits and approvals needed to allow construction of the datacentre to start.
Stock Farm Road co-founder Brian Koo said the project could have a transformational impact on the region.
“Having witnessed first-hand the immense technological capabilities of large Asian enterprises, I recognise the potential of this project to elevate Korea and the region to a new level of technological advancement and economic prosperity,” said Koo. “This datacentre is not merely an infrastructure project, but the launchpad for a new digital industrial revolution.”
Looking ahead, Stock Farm Road said in its statement that the South Korean project marks the delivery of the first phase of its broader global strategy, whereby the company will seek to establish similar AI infrastructure partnerships across Asia, Europe and the US over the next 18 months.
The decision to site the datacentre in the Jeollanam-do province of South Korea is notable, and in keeping with the direction of travel the country’s government has been going in for some time, with regard to supporting the spread of datacentre developments outside of the central Seoul area.
“The general policy direction is for the decentralisation of datacentres away from the greater Seoul area to regional areas for the establishment of purpose-led districts,” said John Pritchard, Korea datacentre advisory team lead at real estate consultancy Cushman & Wakefield, in a late 2024 research note.
“However, this provides challenges for users, whereby latency and proximity to [the] end user are key considerations, and as such datacentres operating in the metropolitan area will become crucial enabling tools for digital groups.”
