Hyundai Motor Group launches SPCs for Saemangeum AI data center, targets W9tr investment

Hyundai Motor, Kia, Mobis, E&C, Autoever all on board

Ground-breaking set for March 2027, service launch in early 2030

Infrastructure and GPU service arms to operate as separate entities

'HMG Saemangeum Office' opens as investment hub

The Yangjae headquarters of Hyundai Motor and Kia. [Hyundai Motor Group]

Hyundai Motor Group announced Friday that it has finalized group-wide participation in building an AI data center at Saemangeum in North Jeolla Province, and will launch two special purpose companies in November to lead the project. Construction is set to begin in March 2027, with full commercial service targeted for early 2030.

The affiliates joining the investment are Hyundai Motor, Kia, Hyundai Mobis, Hyundai Engineering & Construction and Hyundai Autoever. The group had already established a 200-megawatt solar power SPC in September and begun the architectural review process for the data center. With the launch of the two new entities, Hyundai Motor Group is moving to accelerate its roughly 9 trillion won ($6.74 billion) Saemangeum AI Valley investment.

A 24-hour learning hub for autonomous driving, robot training and vehicle development

The two new entities will be structured separately: a "data center SPC" responsible for constructing the hyperscale facility and building out its infrastructure, and a "GPU service SPC" tasked with securing high-performance GPUs and delivering computing services. The split is designed to separate infrastructure construction from computing resource and software operations, boosting both specialization and execution speed.

Hyundai Autoever, the group's IT and software affiliate, will join the GPU service SPC following board approval. Drawing on its accumulated technology capabilities and expertise in managing high-performance computing resources, Hyundai Autoever is expected to support the group's broader AI transformation.

Hyundai Motor Group Executive Chair Euisun Chung delivers a welcoming address at the groundbreaking ceremony for HPLS in Donaldsonville, Louisiana, on Nov. 4 (local time). [Hyundai Steel]

The AI data center will be used to advance the group's physical AI capabilities — spanning autonomous driving, robotics and manufacturing AI — as well as its broader research and development. Its primary role will be as a supercomputing hub for around-the-clock training and validation of end-to-end autonomous driving algorithms. Hyundai Motor Group says that achieving Level 4 or higher autonomy requires continuous learning not only from real-world driving data but also from synthetic simulation data replicating hazardous conditions such as severe weather and sudden obstacles.

In robotics, the center will train advanced robot behavior models within a data center-based digital twin environment. The group plans to refine intelligence technologies that allow robots to perceive visual and language inputs and act autonomously, as well as service and mobile robotics capable of handling unstructured environments and joint-control technologies for precise movement.

The facility will also support vehicle development. High-performance AI will be applied at every engineering stage — from early design concepts through virtual crash testing, aerodynamic analysis and battery thermal management — to reduce repetitive tasks for engineers and improve both development efficiency and quality.

Hyundai Motor Group is in discussions with global companies on technology cooperation for infrastructure buildout and large-scale cloud integration. The group is also coordinating financial support arrangements based on MOUs signed with Korea Development Bank and other institutions.

'HMG Saemangeum Office' in Gunsan to provide one-stop permitting and project support

Hyundai Motor Group held an opening ceremony Friday for the HMG Saemangeum Office at the Future Mobility Tech Center of the Automotive Technology Institute in Gunsan, North Jeolla Province. Dedicated staff will be permanently stationed at the office to handle site permitting, ground-breaking preparations, issue management and real-time coordination with relevant government agencies — all under one roof.

The ceremony was attended by about 30 people, including Saemangeum Development Agency Commissioner Moon Seong-yo, North Jeolla Province Governor Lee Won-taek and Gunsan Mayor Kim Jae-jun. From Hyundai Motor Group, Senior Vice President Shin Seung-gyu, head of the RH PMO division, was among those present.

In remarks at the ceremony, Shin said the group plans to break ground first at Saemangeum on an AI data center capable of large-scale data accumulation and training, in order to internalize autonomous driving and physical AI technologies and sharpen its capabilities. "The HMG Saemangeum Office is a symbol of our resolve to push this project forward without wavering," Shin added.

The Saemangeum AI Valley that Hyundai Motor Group is developing is a multi-component project encompassing an AI data center, a robot manufacturing cluster, solar power generation, a water electrolysis plant for clean hydrogen production and an AI hydrogen city. The group signed an investment agreement with the central government and North Jeolla Province in February at the Gunsan Saemangeum Convention Center, pledging roughly 9 trillion won for a 1.124 million-square-meter site at Saemangeum.

Of that total, the largest share — 5.8 trillion won — is earmarked for the AI data center, with 1.3 trillion won allocated to solar power, 1 trillion won to the water electrolysis plant, and 400 billion won each to the robot manufacturing and parts cluster and the AI hydrogen city. Hyundai Motor Group said it will strengthen communication with North Jeolla Province, the Saemangeum Development Agency and other relevant bodies through the new office.

"The establishment of the AI data center SPC is the starting gun signaling that the Saemangeum AI Valley investment has entered full swing," a Hyundai Motor Group official said. "Centered on the HMG Saemangeum Office, we will push ahead without disruption not only on the AI data center but on all related projects as well."

eyre@heraldcorp.com