Hyundai Engineering wins W870b Gunsan AI data center contract

Hyundai Engineering announced Monday it has won the contract to build the Gunsan SGC AI Data Center.

The win comes about six months after the company announced in March that it would develop advanced industrial construction — including data centers — as a key pillar of future growth. Since then, Hyundai Engineering has established a dedicated data center unit and focused on recruiting specialists and strengthening technical capabilities.

The project involves constructing a data center on a 115,702-square-meter site in Bieungdo-dong, Gunsan, North Jeolla Province. Valued at about 870 billion won ($640 million), the facility will have a capacity of 60 MW, with groundbreaking scheduled within October.

The project is the first phase of a 300 MW AI data center cluster being developed by client SGC Group. Hyundai Engineering said it expects to secure preferred negotiating rights for the subsequent 240 MW phase.

In the first phase, Hyundai Engineering will carry out architectural, civil, mechanical, landscaping and telecommunications work. For the mechanical, electrical and plumbing systems — the core infrastructure of any data center — the company will handle cooling and power supply equipment, including cooling towers, chillers and switchboards.

The Gunsan SGC AI Data Center is set to be equipped with Nvidia's next-generation AI chip, the Vera Rubin. It will also adopt the modular skid solution from Vertiv, a global provider of AI infrastructure and cooling solutions.

Hyundai Engineering is accelerating its push into the data center sector. The company has already been named preferred negotiating partner for data center projects in Incheon and Gumi, North Gyeongsang Province, and is targeting contract signings by year-end. Combined with the Gunsan deal, its total data center orders for the year are forecast to reach about 1.9 trillion won.

The company believes its experience in advanced industrial construction and accumulated technical expertise will give it a competitive edge in the data center market. It points in particular to its deep understanding of large-scale industrial facilities and the capabilities it has built in constructing major power and mechanical systems — skills that align closely with what AI data center projects demand.

Hyundai Engineering also brings building information modeling capabilities for construction optimization, along with heavy-load structural technology designed to safely accommodate high-weight equipment such as high-performance AI servers.

The company plans to expand beyond construction into operations, maintenance and investment participation, broadening its role across the full data center business cycle.

Hyundai Engineering also intends to develop an energy procurement model for data centers linked to its existing renewable energy projects — including solar power — as well as its next-generation energy initiatives in small modular reactors and hydrogen. The strategy is to address the power supply and carbon reduction challenges that have emerged as central issues in the global data center market, while building a differentiated business model.

"Superior infrastructure in the data center industry translates directly into stable digital service competitiveness," a Hyundai Engineering official said. "We will continue to deliver data centers equipped with the reliable power supply and operating environment that the AI era demands, using the best technology available."

Meanwhile, Hyundai Engineering recently signed a project implementation agreement with KazMunayGas, Kazakhstan's state gas company, to advance the Karachaganak gas processing facility project, further demonstrating its world-class technical and project execution capabilities in the gas processing plant sector.