Five companies, including GS Engineering & Construction and LG Uplus, sign MOU

Partners to jointly develop hyperscale prefabricated modular data center standard model

Representatives from five companies pose for a photo after signing an MOU to establish a PMDC Alliance on Friday at LG Uplus' Pyeongchon Mega Center in Anyang, Gyeonggi Province. From left: Xi C&A CEO Kim Uk-su, GS Engineering & Construction CEO Heo Yun-hong, LG Uplus CEO Hong Beom-sik, D&O CM CEO Lee Yeong-ho and Gansam Architects & Partners CEO Park Mu-chan. [GS Engineering & Construction]
Representatives from five companies pose for a photo after signing an MOU to establish a PMDC Alliance on Friday at LG Uplus' Pyeongchon Mega Center in Anyang, Gyeonggi Province. From left: Xi C&A CEO Kim Uk-su, GS Engineering & Construction CEO Heo Yun-hong, LG Uplus CEO Hong Beom-sik, D&O CM CEO Lee Yeong-ho and Gansam Architects & Partners CEO Park Mu-chan. [GS Engineering & Construction]

GS Engineering & Construction announced Monday it will develop a standard model for prefabricated modular data centers, or PMDCs, incorporating modular construction technology to meet surging demand for AI data centers.

The company signed a "PMDC Alliance" memorandum of understanding Friday at LG Uplus' Pyeongchon Mega Center in Anyang, Gyeonggi Province. GS Engineering & Construction CEO Heo Yun-hong, LG Uplus CEO Hong Beom-sik, Xi C&A CEO Kim Uk-su, Gansam Architects & Partners CEO Park Mu-chan and D&O CM CEO Lee Yeong-ho attended the signing ceremony.

In the AI data center market, the rapid spread of generative AI services and growing demand for GPU-based high-performance computing have made "time to market," or TTM — the ability to deliver infrastructure precisely when customers need it — a key competitive differentiator.

The PMDC standard model to be developed under the agreement uses a modular approach in which structural components and major systems such as power and cooling are prefabricated off-site and then assembled on location, optimizing the process for faster construction. Through the partnership, each participating company will draw on its own area of expertise to jointly develop and commercialize a hyperscale PMDC standard model applicable to large-scale AI data centers.

GS Engineering & Construction will review the PMDC model's architectural structure, construction methods, schedule-reduction strategies and cost appropriateness. Through the collaboration, the company plans to sharpen its PMDC execution capabilities by applying standardization, modularization and schedule-compression measures from the design stage onward — enabling faster and more flexible responses to customer requirements in future AI data center projects and reinforcing its competitiveness in large-scale data center engineering, procurement and construction.

"In the AI data center market, the ability to build a data center reliably and quickly — exactly when customers need it — is becoming a critical competitive edge," a GS Engineering & Construction official said. "Through this PMDC collaboration framework, we will continue to strengthen our competitiveness in building AI data centers optimized for the domestic environment."

Meanwhile, GS Engineering & Construction recently reported preliminary second-quarter revenue of 2.78 trillion won ($2.04 billion) and operating profit of 91.4 billion won.


hope@heraldcorp.com