Floating data centers emerge as new frontier for Korean shipbuilders, with HD Hyundai joining Samsung Heavy

As AI drives an explosive surge in power demand, floating data centers are emerging as a new growth frontier for Korean shipbuilders. Land-based data centers are struggling to keep up with demand, and floating data centers — large-scale facilities built on vessels and moored at sea — are gaining traction as a viable alternative. The high profit margins these projects promise have already drawn Samsung Heavy Industries into the space, and HD Hyundai is now moving in earnest as well.

According to Sangsangin Investment & Securities, HD Hyundai said at a recent non-deal roadshow that it had received inquiries from customers about floating data center orders and that a contract award this year was possible. At the event, HD Hyundai emphasized its competitive edge: the group can secure orders covering not only the construction of the data center vessel but also the power-supply engines in a single package.

HD Hyundai has also recently established a dedicated internal team for floating data centers. HD Hyundai Marine Solution, the group's ship-engineering affiliate, said at its earnings conference call last month that it had formed a dedicated floating data center unit to review the business and was building a collaborative framework with HD Korea Shipbuilding & Offshore Engineering.

Among Korean shipbuilders, Samsung Heavy Industries has been the most aggressive in pursuing floating data center business. After signing an MOU with US data center developer Mousterian in April, Samsung Heavy concluded a contract with the company in July covering basic and detailed design as well as production of a floating data center.

Industry watchers expect Samsung Heavy to be the most likely candidate to win the full Mousterian order. "Samsung Heavy could potentially build 10 floating data centers in series for Mousterian's ZEUS project, which is planning a 500 MW facility," said Choi Gwang-sik, an analyst at Daol Investment & Securities. "If demand is strong enough, the work could expand to all three of Korea's major shipbuilders."

Samsung Heavy has also recently obtained approval in principle from the American Bureau of Shipping for a 200 MW floating data center — the first such approval secured by a Korean shipbuilder.

Floating data centers place large-scale computing infrastructure on the ocean rather than on land, making them an increasingly attractive future business for shipbuilders amid the AI-fueled infrastructure investment boom. The projects suit shipbuilders better than the construction companies that have traditionally dominated the data center market, because building the offshore platform capable of supporting a massive data center requires marine engineering expertise. Samsung Heavy Industries has long been a leader in offshore plant construction, and HD Hyundai Heavy Industries also has extensive experience winning offshore plant contracts.

Floating data centers are drawing particular attention because they address the limitations of conventional facilities while also offering cost efficiencies. "Compared with traditional data centers, floating data centers offer advantages including relief from large land requirements, better cooling efficiency, the ability to use standardized modular construction, asset flexibility and scalability," said Han Seung-han, an analyst at SK Securities.

Only one floating data center project has been commercialized in the global market so far. Several others are expected to begin operation next year — among them a 25 MW facility by Singapore infrastructure investor Keppel, and a floating data center being jointly developed by Japanese shipping company Mitsui O.S.K. Lines and infrastructure investor Hitachi using a converted secondhand vessel.

"We expect floating data center orders to start flowing in earnest from the second half of this year," an industry official said. "Shipbuilders will continue to receive inquiries because these facilities overcome the limitations of current power supply infrastructure while remaining cost-efficient."