Gangwon Province Governor Woo Sang-ho pledged Monday to support large conglomerate investment in the province "at an astonishing speed," presiding over a three-way agreement signing among GS Group, Donghae city and Gangwon Province for an AI data center project at the Bukpyeong Industrial Complex in Donghae. The project carries an investment scale of 30 trillion to 120 trillion won ($77.9 billion).
Attendees at the signing ceremony included Governor Woo, Donghae Mayor Lee Jeong-hak, GS Group Vice Chairman Hong Sun-gi, GS E&R CEO Hwang Byeong-so, GS AI Infrastructure CEO Do Hyeon-su and Korea Electric Power Corp.'s Gangwon branch chief Lee Cheol-hyu.
"AI data centers are the core infrastructure of the AI industry and the growth foundation driving future industrial competitiveness," Woo said. "The Donghae AI data center campus will be the first project in Gangwon Province's AI industry and the starting point for building an AI industrial ecosystem."
He added that the provincial government would take full responsibility for administrative matters so that companies could focus entirely on investment, and vowed to develop Gangwon Province into a hub for the AI industry by fostering an ecosystem in which AI companies and related industries grow together.
When GS representatives stressed that speed was critical, Woo said he would support GS Group on all administrative matters "at a surprisingly fast pace," and urged both sides to work together so that local Gangwon talent could grow by working at major conglomerates.
Lee Cheol-hyu, head of Korea Electric Power's Gangwon branch and the key figure controlling the power supply central to any AI data center, said Gangwon Province had long exported its surplus energy to the Greater Seoul and Chungcheong areas due to a lack of local industry, but that the utility would now actively support power-related needs given the scale of investment by major companies.
Should Korea Electric Power move aggressively in support of President Lee Jae-myung's mega-project agenda, the specifics of SK Group's AI data center construction in the Gangneung area — currently stalled over substation siting issues — are also expected to be resolved before long.
The agreement was drawn up in line with government policies to strengthen AI industry competitiveness and promote balanced regional development, with the aim of establishing an AI data center campus at the Donghae Bukpyeong Second General Industrial Complex and building a cooperative framework to foster the AI infrastructure industry and revitalize the local economy.
Under the agreement, Gangwon Province, Donghae city and GS Group will cooperate on attracting businesses and fostering the AI infrastructure industry for the successful development of the Donghae AI data center campus, providing swift administrative support including fast-track permitting, and forming and operating a working-level consultative body.
The Donghae AI data center campus is planned for a site of approximately 70,000 pyeong (1 pyeong equals 3.3 square meters) within the Donghae Bukpyeong Second General Industrial Complex, with a target capacity of 1.2 gigawatts by 2028, to be expanded by an additional 1.2 gigawatts by 2029 for a total of 2.4 gigawatts.
The project will leverage GS Group's power generation infrastructure and the locational advantages of the Bukpyeong Second General Industrial Complex, and is expected to serve as the starting point for an industrial ecosystem in which AI companies and related industries grow together around the data center.
Gangwon Province plans to actively pursue fast-track permitting and support for infrastructure including power and water supply so that companies can focus on investment, with the goal of creating quality jobs and driving local economic growth through an AI industrial ecosystem where AI companies and related industries develop side by side.
abc@heraldcorp.com
