State-owned companies Korea Land & Housing (LH) and Korea Data Center Council (KDCC) have agreed to spend around $3.6bn to build a data center campus in South Korea.
The planned 90,000 sq m (968,000 sq ft) campus will consist of three data centers. LH said it would try to attract investment by issuing public offerings to real estate investment trusts.
A stimulus for green Korean data
As reported by the Korea Herald, the planned campus will be powered by green energy sources.
A memorandum of understanding was signed last Friday; it is understood LH and KDCC will collaborate with Korea Hydro & Nuclear Power (KHNP) to build the campus.
Chang-Hum Byun, president of LH, said (translated): “LH is overcoming the economic recession [with] a paradigm shift in the domestic data industry. We will make active efforts to strengthen our global competitiveness. Not only for this green energy data center but also [for] the transition to an eco-friendly energy society by building digital and green energy infrastructure. We will do our best to lead and secure sustainable urban competitiveness.”
Along with the MoU, a City Business Agreement was also signed with KHNP to provide energy to other data centers and use that as a model for future business districts created by LH.
This isn’t the first time a state agency has intervened in South Korea's data center industry. In August, the Overseas Infrastructure & Urban Development Corp (KIND) signed an MoU with South Korea’s largest telecoms provider, KT Corp.
The MoU involved a pledge by KIND to promote KT’s data center business and smart city projects internationally - with KT designing and operating data centers and KIND seeking new partnerships and investments overseas.