Samsung's IT services unit, Samsung SDS, has acquired the Gumi Plant One site from Samsung Electronics and intends to develop it into a data center.
Samsung SDS will purchase the land and auxiliary buildings at 244 1st Industrial Complex-ro, Gumi-si, Gyeongsangbuk-do, South Korea, for 21.5 billion won ($15.4 million).
Gumi One is a manufacturing plant that opened in 1983. However, since the company moved its production functions to other locations, its utility has declined, leading to the sale.
Samsung SDS will subsequently use the land to expand its data center business in the country.
In addition, Samsung SDS has appointed Lee Jun-hee, the former VP of Samsung Electronics, as its new CEO and president. Lee joined Samsung in 2006 and has worked across various divisions.
In the coming months, Samsung SDS plans to finalize and announce its regular executive personnel changes for 2025, including vice presidents and below.
Samsung SDS operates data centers in 18 locations. The company also operates five data centers in South Korea in Sangam, Suwon, Gumi, Chuncheon, and Dongtan.
The expansion is part of Samsung SDS's broader strategy to expand its cloud business.
In March 2023, it opened a new data center in South Korea as part of plans to expand its cloud offering. Located in Dongtan, Gyeonggi Province, the company said the facility is the country’s first high-performance computing dedicated data center focusing on AI and extensive data analysis operations.
Founded as Samsung Data Systems in 1985, Samsung SDS is an IT service provider that offers consulting, technical, and outsourcing services. The company also does a lot of R&D in technologies, including AI, Blockchain, and the IoT.
