Samsung will build a 427.3 billion won ($295 million) data center in eastern South Korea.

The conglomerate announced on Friday that its IT services unit, Samsung SDS, is set to build a facility in Gumi, a city in North Gyeongsang Province.

Local outlets have reported that the facility will become operational by 2029 with up to 4 trillion won ($2.7bn) worth of expected additional investment.

The data center will be built on the site of Samsung Electronics’ Gumi Plant 1, which was acquired by Samsung SDS in 2024 for this express purpose.

Details about capacity and size were not made available.

The South Korean conglomerate has been big on the AI industry, and Samsung SDS currently operates data centers in 18 locations across the country.

Last November, the conglomerate announced around 450 trillion won ($308bn) worth of investment into domestic industries related to AI and semiconductors.

The announcement was made amidst concerns that a controversial and costly tariff deal with the US, which would see South Korea invest $350bn into various American industries, could lead to domestic under-investment.