SGC Energy builds public-private partnership for AI data center project

SGC Energy, a comprehensive eco-friendly energy company, announced Wednesday that its AI data center subsidiary SGC AI Infrastructure has established a public-private cooperation framework ahead of a planned groundbreaking in the fourth quarter of this year.

With a site and tenants already secured, the addition of financial and administrative support is expected to accelerate the project's progress.

SGC AI Infrastructure signed an investment agreement Tuesday at the North Jeolla Province government office in Jeonju with North Jeolla Province, Gunsan and the Korea Industrial Complex Corp. for the AI data center project. Korea Investment & Securities participated in the signing as a financial investor and lead arranger.

The ceremony was attended by North Jeolla Province Governor Lee Won-taek, Gunsan Mayor Kim Jae-jun, Korea Industrial Complex Corp. North Jeolla regional head Moon Moon-cheol, SGC Energy CEO Lee Woo-sung and Korea Investment & Securities CEO Kim Sung-hwan.

North Jeolla Province, Gunsan and the Korea Industrial Complex Corp. will actively support the permitting and administrative procedures required for data center construction. Korea Investment & Securities will participate as a financial investor and lead arranger, contributing equity to the project's dedicated entity and arranging project financing.

SGC Energy plans to build the data center in a modular format on a site it has already secured. The company aims to complete building permits and groundbreaking notifications for a 60 MW AI data center by the third quarter of this year, with full construction set to begin in the fourth quarter.

SGC Energy plans to start with a 60 MW facility and expand it in stages to a maximum of 300 MW. The company said it will work closely with its partners to generate synergies throughout the scale-up process.

"We expect this public-private cooperation framework to mark the start of full-scale execution of the AI data center project," SGC Energy CEO Lee Woo-sung said. "We will push ahead with the project on schedule, develop AI infrastructure as a new growth pillar for the future, and take the lead in advancing regional industry and transforming its fundamentals."