The government is accelerating a project to build an artificial intelligence data center (AI DC) worth 600 billion won in Pohang, Gyeongsangbuk-do Province, utilizing the Regional Revitalization Investment Fund.
The Ministry of Science and ICT announced on the morning of the 28th that it discussed the rapid advancement of "No. 9 of the Regional Revitalization Investment Fund" at a joint meeting of the Economic Ministers' Meeting and the Science and Technology Ministers' Meeting, held at the Government Seoul Complex in Seoul Sejong University, presided over by Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon, and Deputy Prime Minister and Minister of Economy and Finance Lee Hyoung-il.
The No. 9 Regional Revitalization Investment Fund is a fund established to raise capital for the "Pohang AI Dedicated Data Center Project," which has a total project cost of 600 billion won. The plan is to use the master fund created annually by the government and others as a catalyst to attract more than 10 times that amount in private investment, directing it toward regional development.
The Pohang AI DC project involves leasing a data center with a power capacity of 40 megawatts (MW) located at the Gwangmyeong General Industrial Complex in Ocheon-eup, Nam-gu District, Pohang, to AI operators and others, while providing ancillary services necessary for maintaining the data center, such as electricity supply and temperature and humidity control.
The project leverages the region's abundant power infrastructure and includes a vision to develop the eastern coast of Gyeongsangbuk-do Province into an AI industry hub in the future. Upon completion of the project, it is expected that the AI core infrastructure will support the AI transformation of regional industries and alleviate the concentration of data centers in the metropolitan area.
The government also explained that the project will contribute to regional economic revitalization through a production-inducing effect of 1.2 trillion won and an employment-inducing effect of approximately 4,000 people.
Korea Growth Investment Management, the operator of the Regional Revitalization Investment Fund, recruited sub-funds in July this year and raised capital through a project finance (PF) agreement in September. The construction period runs from June this year to December 2027, with a progress rate of 7.66% as of the end of September.
The Ministry of Science and ICT explained, "Financial institution PF loans and other funds will be invested according to the progress rate, and after completion and trial operation in November 2027, operations will begin in January 2028."
It added, "Gyeongsangbuk-do Province will contribute 4 billion won by the end of 2027 using a special purpose vehicle (SPV)." To ensure the rapid execution of the investment fund, the government decided to apply an exemption from the "Local Finance Investment Review" procedure, which is a preliminary step for local government contributions.
In his opening remarks at the meeting that day, Deputy Prime Minister Bae Kyung-hoon stated, "Recently, our country has been included in the top-tier 'AI leading countries' group alongside the United States and China, and it has recorded first place in Asia for two consecutive years and fourth place globally on the Global Innovation Index."
He added, "This is a valuable achievement brought about by the government's strategic investment and the private sector's continuous innovation and challenges. Close cooperation between ministries is important for the results of technology development to lead to the creation of new industries and markets."
in TECH
