Posco is teaming up with GS Group to tap growing demand for AI data centers, combining its specialized steel products and engineering expertise with GS's construction, power and cooling capabilities to pursue projects in Korea and overseas.
According to Posco, key figures — including Posco President Lee Hee-geun and GS Group Vice Chairman Hong Soon-ki — attended a strategic memorandum of understanding signing ceremony held in Gangnam, Seoul, on Wednesday.
Under the partnership, the two conglomerates will collaborate on major domestic AI data center projects led by GS Group and then target global markets. The agreement centers on applying Posco’s “early vendor involvement” program to AIDC construction, evolving from a conventional late-stage supplier into a partner that provides custom steel solutions from the initial design stage.
Securing profitability in AI data center development depends on two key factors: shortening construction timelines and maximizing power and cooling efficiency. Driven by the surge in AI infrastructure demand, faster project delivery allows operators to deploy advanced computing on schedule and accelerate revenue to boost overall returns.
Posco plans to deploy its lineup of AI data center-specialized materials — including corrosion-resistant PosMAC alloy plates, electromagnetic shielding and high-efficiency electrical steel — designed to boost durability while cutting construction times and maintenance costs.
The company will also apply its steelworks power generation and expertise to heating, ventilation and air conditioning to optimize data center operations.
GS Group will oversee overall infrastructure development, with GS E&C leading project planning, power supply, engineering and construction, and GS Caltex taking charge of liquid cooling solutions.
Posco noted that combining GS Group’s infrastructure value chain with the steelmaker’s material expertise will maximize project profitability and operational stability.
After establishing a domestic footprint, the two companies plan to leverage Posco’s global steel network and GS Global’s international channels to target high-demand AI markets across North America and Asia.
“The rapidly expanding AI data center market represents a key future growth driver for steel and materials demand,” stated Lee, emphasizing that the Posco-GS Group partnership will solidify its lead in the global AI data center market.
The two companies will shortly form a joint working group to establish execution plans that streamline construction and map out global expansion strategies.
hyejin2@heraldcorp.com
