South Korea is rapidly overhauling its data center infrastructure to meet the surging demands of artificial intelligence, leveraging cutting-edge management systems, modular edge solutions, and massive hyperscale facilities—all backed by strategic government and corporate collaboration.
The country is transforming its data center landscape with AI-enhanced Data Center Infrastructure Management (DCIM) systems—a digital-first platform offering real-time monitoring of IT assets, power, cooling, and capacity. These AI-powered upgrades dynamically optimize energy use, reduce carbon footprints amid the national push for net-zero by 2050, and support edge deployments in smart cities like Songdo and IoT-heavy environments.
At the same time, the government and industry are investing in modular micro data centers (MDCs)—small, containerized units that incorporate compute, storage, cooling, and security into scalable modules powered by locally designed AI chips. A KRW 27.3 billion (~$19.9 million) initiative, led by the Ministry of Science and ICT, is placing these MDCs in non-metropolitan regions like Daegu and Gwangju. These centers are designed to deliver low-latency AI services to SMEs, hospitals, and public institutions, while also boosting the domestic AI chip ecosystem through companies such as Furiosa AI and Rebellions.
On a much larger scale, South Korea is embarking on world-class AI data center projects. The Ulsan AI Hub, announced in June 2025 by SK Group and AWS, represents a US $5.11 billion investment. It will house 60,000 GPUs and launch with a 100 MW capacity by 2029, with plans to scale up to a staggering 1 GW. Meanwhile, Fir Hills’ planned 3 GW AI facility in Jeollanam-do will cost between $10–$35 billion and is expected to be completed by 2028, featuring advanced cooling systems and fiber connectivity while creating more than 10,000 jobs.
These projects complement broader national efforts, including GPU procurement for the National AI Computing Centre, favorable regulatory frameworks, and public-private partnerships. Together, they are cementing South Korea’s rise as a global AI infrastructure powerhouse.
