The first public-private agreement marking the launch of President Lee Jae-myung's three major mega-projects was signed in Gangwon Province on Sunday.
Gangwon Province Governor Woo Sang-ho, GS Group Vice Chairman Hong Soon-ki and Donghae Mayor Lee Jeong-hak signed a mutual cooperation agreement for the "successful development of the Donghae AI Data Center Campus" at the provincial government building, pledging comprehensive investment and administrative support from construction through completion and operation of the facility.
GS Group plans to build a 2.4-gigawatt AI data center campus — the largest in Asia — at the Bukpyeong Second General Industrial Complex in Donghae. Total investment is estimated at 30 trillion won ($19.5 billion), with a second phase incorporating GPUs and memory chips expected to bring cumulative investment to around 120 trillion won.
GS Group announced the plan at a national briefing on the three mega-projects held at Cheong Wa Dae on June 29, presided over by President Lee. The MOU with Gangwon Province and Donghae City, signed just over a week later, signals the group's swift move to act on the initiative.
GS Group said it aims to complete 1.2 gigawatts of AI data center capacity by 2028 in the first phase, followed by an additional 1.2 gigawatts by 2029, bringing the total to 2.4 gigawatts. The group said construction would generate a cumulative workforce of 70,000, with about 2,000 permanent jobs at the data center once operational.
Residents of Gangwon Province and Donghae City have welcomed GS Group's investment plan, viewing it as a major turning point for regional development.
GS Group subsidiaries GS Power, GS EPS and GS E&R bring extensive expertise in delivering large-scale, stable power supply for AI data centers. GS Engineering & Construction, along with Xi C&A and DC Bridge, have accumulated broad experience building and operating data centers, including the Epoch Anyang Center and the Goyang Magna Center.
Governor Woo said Sunday he was grateful to GS Group for committing to a large-scale investment in Gangwon Province. "This is the first MOU signed between a major conglomerate and a local government since President Lee announced the three mega-projects with the business community, and Gangwon Province is moving faster than anyone on these future mega-projects," he said.
He added that the province would "prepare a meticulous support strategy and help GS Group at a pace that will surprise everyone," and called on both sides to work together so that "Gangwon Province grows significantly and its talent can work and advance at a major company."
GS Group Vice Chairman Hong said the group had designated AI data centers as a core future business and had been preparing steadily. "What matters is speed — if we move quickly and make this project a success, it will have a major ripple effect on regional economic vitalization, job creation and the development of a related ecosystem, and it will be an important catalyst for reshaping South Korea's future industrial map," he said.
Donghae Mayor Lee said he and the city's residents "sincerely welcome" GS Group's AI data center project coming to Donghae, and expressed gratitude to both GS Group and Governor Woo for their efforts to attract the investment. "This will be the core engine of Donghae's future growth, and the city will mobilize every resource it has to support GS Group," he said.
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