A rendering of the Pohang Global AI Data Center [Pohang City]
A rendering of the Pohang Global AI Data Center [Pohang City]

The government has selected an AI-dedicated data center in Pohang, North Gyeongsang Province, and a battery energy storage system (BESS) project in Yeonggwang-gun, South Jeolla Province, as the ninth and tenth projects under its Regional Revitalization Investment Fund, a program that backs large-scale, locally driven investment initiatives. The two projects represent a combined investment of 779.8 billion won ($547 million) aimed at building advanced-industry infrastructure and strengthening regional growth engines.

The Ministry of Planning and Budget announced Thursday that it had designated the Pohang AI Data Center as the fund's ninth project and the Yeonggwang Battery Energy Storage System as its tenth.

Under the fund's structure, local governments and private entities identify projects suited to regional needs, and a mother fund — seeded with government fiscal resources and other public capital — acts as a catalyst to attract private investment and expand locally led development.

The Pohang AI Data Center will receive 600 billion won in total project costs to build a GPU-based, water-cooled AI-dedicated data center with a power capacity of 40 megawatts (32 MW IT load) at the Gwangmyeong General Industrial Complex in Pohang. Unlike conventional general-purpose data centers, the facility is purpose-built for AI computing workloads. With major permits secured and power supply arrangements in place, the project targets a ground-breaking in the second half of this year and the start of operations in the first half of 2028.

The government expects the project to generate roughly 4,300 jobs during construction and produce 1.2 trillion won in output-inducing effects, while also drawing additional investment through partnerships with global technology companies.

The Yeonggwang BESS project will deploy 179.8 billion won to build a battery energy storage system with a maximum discharge capacity of 80 MW and a storage capacity of 480 MWh in Yeonggwang-gun. The facility will store surplus electricity generated during peak renewable energy production hours and release it during periods of high demand, improving grid stability. Construction began in the first half of this year, with completion targeted for December and operations set to begin in early 2027.

The government expects the Yeonggwang project to boost renewable energy utilization in the Honam region while establishing a stable power supply base that supports the development of advanced industries.

An overview of the Regional Revitalization Investment Fund [Ministry of Planning and Budget]
An overview of the Regional Revitalization Investment Fund [Ministry of Planning and Budget]

The Regional Revitalization Investment Fund is a policy fund introduced in 2024 that operates through a mother fund capitalized by government fiscal resources, the Local Extinction Response Fund and Korea Development Bank, among others.

The fund is structured to attract private capital of at least 10 times the mother fund's investment. To date, the mother fund has reached 800 billion won in total, with 10 projects selected representing combined project costs of 4.4 trillion won. The government plans to support project execution through a range of incentives, including expedited or waived fiscal investment reviews and special guarantee programs through the Korea Housing Finance Corp.


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