Samsung SDS held a groundbreaking ceremony Monday for its new artificial intelligence data center in Gumi, North Gyeongsang Province, which will initially have 60 megawatts of power capacity, with plans to double that capacity as demand for AI computing grows.
The facility, scheduled for completion by the end of 2028, will occupy a 46,000-square-meter site. It is designed to accommodate up to 120 MW through phased expansion.
Samsung SDS CEO Lee June-hee attended Monday's ceremony. Construction had already begun following approval from Gumi authorities in late August.
The company approved a 427.3 billion won ($319 million) investment in January and signed an agreement with the provincial and municipal governments that month.
The project is part of Samsung Group's 60 trillion won investment plan, announced in July, to develop advanced manufacturing industries in southeastern Korea, including robotics, batteries and AI infrastructure.
The data center will support Samsung affiliates' efforts to deploy AI-powered robots in manufacturing, including the computing-intensive training needed for precision tasks.
Samsung SDS also plans to serve outside customers through its own graphics processing unit computing services and colocation arrangements, allowing businesses to install and operate their own GPUs at the facility.
To handle high-density GPU servers, the center will combine liquid cooling for equipment generating substantial heat with conventional air cooling for less demanding systems. Its power infrastructure will include redundant equipment and emergency backup systems.
The investment adds to Samsung SDS' expanding AI infrastructure business. The company's cloud revenue rose 18 percent on-year to 796.1 billion won in the third quarter, supported by increased demand for GPU-as-a-service offerings.
At its earnings announcement Thursday, Samsung SDS also disclosed that it had been selected as preferred bidder for a separate data center project exceeding 200 MW, developed by Pacific Asset Management. The company aims to secure 500 MW of data center design, construction and operation projects by 2031.
Samsung SDS has not disclosed how much of the Gumi facility's planned capacity will be allocated to Samsung affiliates or external customers, or when it intends to expand beyond the initial 60 MW.
mjh@heraldcorp.com
