Data center (Image courtesy of Microsoft)
SAN FRANCISCO, MUAN & SEOUL, South Korea, Feb 19. (Korea Bizwire) — South Korea is set to host the world’s largest artificial intelligence (AI) data center, with a planned capacity of 3 gigawatts (GW) and an estimated investment of up to $35 billion, according to a report by The Wall Street Journal on February 18.
The scale of the proposed data center is unprecedented, as data centers exceeding 1GW of power consumption are rare. The South Korean project will be nearly three times the size of the Stargate project—a Texas-based AI data center initiative led by OpenAI and SoftBank.
Stock Farm Road, an investment group spearheading the project, is co-founded by Brian Koo, grandson of the LG Group founder, and Amin Badr-El-Din, CEO of London- and Jordan-based BADR Investments. Koo, also known as Koo Bon-woong, is the son of the late Koo Ja-hong, the first chairman of LS Group, but has pursued venture investments independently of the conglomerate.
The exact location of the facility has not been disclosed, though it is expected to be built in the southwestern region of South Korea, far from Seoul. Construction is slated to begin early this year, with completion targeted for 2028.
Investors have already signed agreements with the Jeollanam-do provincial government to secure power and water resources, indicating that the region is a likely candidate for the project site.
Despite the ambitious plans, experts warn of potential delays due to supply chain constraints and the ongoing global shortage of AI chips, particularly those from Nvidia. As a result, the project’s timeline could extend beyond 2028.
Stock Farm Road plans to invest an initial $10 billion, with a long-term goal of committing up to $35 billion. Brian Koo emphasized South Korea’s potential as a global AI data hub, stating that while current domestic data centers primarily serve local demand, the country is well-positioned to operate large-scale AI data centers targeting the international market.
The move underscores the soaring global demand for AI infrastructure, despite concerns over the sustainability of the AI boom. Other nations, including the U.S., Europe, and the Middle East, are also rapidly expanding AI data center projects, while in Asia, Malaysia, Thailand, and India are leveraging lower land and labor costs to develop data clusters.
Jingwen Ong, an Asia-Pacific research manager at data center analysis firm D Byte, noted that if South Korea can reduce costs and expedite construction, its AI data center could be highly competitive.
On February 5, the Jeollanam-do provincial government signed a memorandum of understanding (MOU) with Fir Hills, a subsidiary of Stock Farm Road, to collaborate on the project. Additionally, Governor Kim Yung-rok is scheduled to visit San Francisco on February 26 to discuss further details with investors.
While South Korea’s AI ambitions are gaining international attention, industry insiders remain skeptical. The country’s current electricity supply for data centers is capped at 100 megawatts (MW), making the proposed 3GW facility an unprecedented leap. Experts caution that securing adequate power resources will be a major hurdle in realizing the project.
Kevin Lee (kevinlee@koreabizwire.com)
