Pohang breaks ground on 2-trillion-won global AI data center

Pohang, North Gyeongsang Province, has moved to build core infrastructure to lead the global AI era by attracting a large-scale data center to the city.

Pohang held a groundbreaking ceremony Monday for a global AI data center at the Gwangmyeong General Industrial Complex, marking the first step toward fostering AI-driven future industries.

About 200 people attended the ceremony, including Pohang Mayor Park Yong-seon, Pohang City Council Speaker Kim Cheol-su, local city and provincial lawmakers, representatives from investor Neo AI Cloud and contractor Hyundai E&C, as well as officials from local universities, research institutions and the surrounding community.

The project's first phase will use 2 trillion won ($1.35 billion) in private investment to build a 40-megawatt global AI data center within the Gwangmyeong General Industrial Complex, with completion targeted for 2027.

Following the first phase, the city plans a second-phase expansion to approximately 260 megawatts, which is expected to establish Pohang as a new hub for AI infrastructure in South Korea.

As the spread of generative AI makes securing high-performance computing infrastructure a key factor in national competitiveness, the government has been channeling policy support through the enactment of a special law to promote the data center industry and the designation of the project as one of three mega-projects under its national leap initiative.

Pohang has played an active role in driving the project forward through administrative support.

The city formed a fast-track task force for permits and approvals, led by the deputy mayor, and systematically guided the project through a series of complex administrative procedures — including a grid-impact assessment by Korea Electric Power Corporation, revisions to the industrial complex plan, move-in approval and building permits.

"The groundbreaking of this global AI data center is a great starting point that will transform Pohang's industrial landscape," Mayor Park said. "We will focus all our capabilities on creating an environment where companies, technology and talent grow in a virtuous cycle, so that Pohang can leap forward as South Korea's leading AI industry hub."