Contributing 86.9 billion won as LP

60 MW AI data center planned in Gunsan

Fund to handle project financing, construction contracts

SGC Energy, a comprehensive clean energy company, announced Friday that it has decided to establish a private equity fund with Korea Investment & Securities.

SGC Energy held a board meeting that day and approved a capital contribution to the "SGC-KIS No. 1 Private Equity Fund" (tentative name).

SGC Energy will participate as a limited partner by contributing 86.9 billion won ($64.9 million). Three firms — SGC Partners, Korea Investment & Securities and Harvest Equity Partners — will serve as co-general partners, forming a core management team of five investment professionals.

The SGC-KIS No. 1 Private Equity Fund will work alongside SGC AI Infrastructure to advance a 60 MW AI data center project in Gunsan, with ground-breaking scheduled for October.

The fund will design the project's financing structure and take charge of securing project financing loans and construction contracts on favorable terms. SGC AI Infrastructure will focus on overall project management, including developing the optimal business model and strategy.

Exterior of SGC Songam Building. [Provided by SGC Energy]
Exterior of SGC Songam Building. [Provided by SGC Energy]

SGC Energy has positioned an on-site AI data center model — in which power generated at its own plants is supplied directly to AI data centers — as a new growth pillar, and is now pushing ahead in earnest with a power plant-integrated AI data center business.

The company's primary goal is to bring a 240 MW AI data center into commercial operation by 2030. It then plans to build an LNG power plant and become the first company in South Korea to offer an AI energy infrastructure solution combining AI data centers with dedicated power infrastructure.

To that end, SGC Energy has already filed for a grid impact assessment for the 240 MW capacity, with plans to clear the final review by September 2028 and break ground in 2029. The 240 MW expansion, like the initial 60 MW phase, will proceed on a modular basis at an already-secured site to accelerate project development.

In addition, the company is working to structure the project so that SGC E&C can participate in engineering, procurement and construction, seeking to maximize group-wide synergies. SGC Energy is also considering expanding its AI data center business through additional land acquisitions.

"We will spare no effort in building AI data centers with unrivaled quality, backed by an optimal business model and financing structure," said Lee Woo-sung, chief executive of SGC Energy. "We will leverage our stable cash generation and ample capital capacity to become the first in South Korea to commercialize an on-site power generation-type AI data center, establishing ourselves as a leading company in the AI energy infrastructure market."


keg@heraldcorp.com