APAC real estate firm ESR is developing a data center in Seoul, South Korea, that will be leased to Princeton Digital Group.

ESR partners with Wide Creek for Incheon facility

The company this week said it was developing an 80MW data center in South Korea, in partnership with Seoul-based Wide Creek Asset Management.

Construction of the nine-story KR1 facility, located in Incheon’s Bupyeong district, will start this week. KR1 will be operational in 2028.

The facility is set to be leased to APAC data center operator Princeton Digital Group (PDG).

KR1 is designed by ESR as development manager, with ESR and Wide Creek AMC jointly undertaking the construction of its core and shell. PDG will subsequently manage the internal fit-out and operations.

Stuart Gibson, co-founder and co-CEO, ESR, said: “South Korea stands out as one of Asia’s most dynamic and rapidly expanding digital economies, and we are pleased to develop KR1 – our first data center in the country. Strategically located in Incheon, a key business hub with world-class infrastructure, KR1 will position our customers and partners at the center of this growth. This marks a major milestone for ESR in advancing our pan APAC data center strategy and unlocking value across our significant pipeline of developments in high-demand markets throughout the region.”

ESR said the facility will incorporate building-integrated photovoltaics and fuel cells.

Diarmid Massey, CEO of data centers at ESR, added: “Data centers are the backbone of the digital ecosystem. KR1 will play a pivotal role in enabling seamless data flow and AI-driven innovation in South Korea and across APAC. This development reflects ESR’s blueprint for building next-generation digital infrastructure and our expertise in designing and delivering hyperscale facilities that are efficient, sustainable, and future-ready – empowering the region’s rapid digital transformation.”

ESR has traditionally been focused on logistics real estate and claims to be the largest logistics real estate company in APAC. The company has made a number of investments in the data center space since 2021, and said this week that KR1 forms part of a 3.2GW+ pipeline of secured land and power across APAC.

The press release says this is ESR’s first data center in South Korea. In 2022, ESR partnered with Stack for a planned 48MW development in Seoul, but it's unclear if this ever came to fruition. ESR also sold a data center and logistics facility in Goyang in 2023.

Founded in 2020, South Korean real estate investor Wide Creek has previously partnered with Warburg Pincus, forming a joint venture in 2023 to invest in logistics, data centers, life sciences, and business parks. To date, the JV has acquired two warehouse buildings.

PDG enters South Korea

In its own announcement, PDG said it plans to develop multiple campuses totaling up to 500MW to serve AI and cloud customers in South Korea, starting with a 48MW campus in Greater Seoul.

PDG SE1, located in Incheon, will offer 48MW across 11,000 sqm (118,403 sq ft). The $700 million facility will be ready for service in early 2028. Further details weren't shared.

“South Korea is one of Asia Pacific’s most advanced digital economies and a critical market for cloud and AI hyperscalers. Our entry is part of a long-term plan to be a significant provider of AI and cloud data center capacity in the country,” said Rangu Salgame, chairman, CEO, and co-founder of PDG. “With this expansion, PDG continues to strengthen its position as one of the top pan-Asia operators serving the world’s largest technology customers.”

With SE1, PDG’s portfolio now exceeds 1.2GW of IT capacity across seven countries and more than 20 campuses. Founded in 2017, the company has facilities in operation or development across Singapore, Japan, India, Indonesia, China, and Malaysia. Mubadala is also an investor, while Stonepeak invested in the company earlier this year.

Warburg Pincus, which is a major investor in both PDG and ESR, in September announced a partnership with Wide Creek to develop an 80MW facility outside Seoul in Yongin City.

Construction on that 58,000 sqm (624,305 sq ft) facility has commenced, and is targeted to be ready for service by 2027. That project is in partnership with DC Connects, another data center firm backed by Warburg.