SGC Energy seen posting 79% jump in operating profit this year, eyes AI data center push

SGC Energy is on track for strong earnings this year and plans to sustain its momentum through a new AI data center business.

Shinhan Securities forecasts SGC Energy's operating profit this year at 171.4 billion won ($129 million), up 78.9 percent from last year. The power generation unit alone is expected to more than double its contribution, reaching 107.9 billion won.

Shinhan Securities attributed the strong performance to rising system marginal prices driven by higher oil and LNG prices, which more than offset the increased fuel cost burden. The brokerage added that profit growth centered on the power generation business is expected to continue next year.

Building on its stable earnings base, SGC Energy plans to accelerate its push into AI data centers as a key future growth driver.

SGC Energy and KT Corp's cloud unit are jointly developing an AI data center in Gunsan, North Jeolla Province, on a 115,702-square-meter site. The first phase of the Gunsan AI data center is planned at 60 MW, with total project costs estimated at 872 billion won. KT Corp's cloud unit is set to lease the facility for up to 10 years, with commercial operations targeted for the first quarter of 2028.

The Gunsan AI data center is slated for expansion to 300 MW in line with global market trends. For the second phase, SGC Energy is reviewing a direct power supply model linked to new generation facilities.