Companies sign MOU Wednesday on AI data center cooperation

Posco to supply Posmac, electromagnetic shielding materials and electrical steel

Steelmaker to join projects from early design stage to cut construction time

Partnership to start domestically, then target North America and Asia

Posco President Lee Hee-geun (left) and GS Group Vice Chairman Hong Soon-ki pose for a photo after signing a memorandum of understanding on strategic cooperation in the AI data center business at GS Tower in Gangnam-gu, Seoul, on Wednesday. The two companies plan to combine steel materials and technology from the design stage to collaborate on AI infrastructure projects at home and abroad. [Posco]
Posco President Lee Hee-geun (left) and GS Group Vice Chairman Hong Soon-ki pose for a photo after signing a memorandum of understanding on strategic cooperation in the AI data center business at GS Tower in Gangnam-gu, Seoul, on Wednesday. The two companies plan to combine steel materials and technology from the design stage to collaborate on AI infrastructure projects at home and abroad. [Posco]

Posco is teaming up with GS Group to push into the AI data center market — not merely as a steel supplier, but as a partner involved from the earliest stages of design to provide customized materials and technology.

The two companies signed a memorandum of understanding on strategic cooperation in the AI data center business at GS Tower in Gangnam-gu, Seoul, on Wednesday. Posco President Lee Hee-geun and GS Group Vice Chairman Hong Soon-ki led the signing ceremony, which was attended by about 10 executives from key affiliates of both groups.

The companies agreed to combine Posco's steel materials with GS Group's data center construction and operating technology to collaborate on AI infrastructure projects in South Korea and abroad.

Posco will supply high-value steel for structural components, power systems and cooling equipment, and provide technical support. GS Group will handle project planning and power supply, drawing on GS Engineering & Construction's design and construction capabilities and GS Caltex's liquid-cooling technology to build and operate the data centers.

A key feature of the partnership is Posco's plan to apply its "EVI" model, under which it proposes customized steel solutions from the earliest stage of design. Unlike the conventional approach — where steel is delivered only after design work is complete — the EVI model brings the materials supplier into the project from the outset.

Through this approach, Posco will recommend steel specifications and processing methods suited to each structure and facility, and jointly review performance testing and procurement schedules. The aim is to reduce delays in equipment supply and design changes, shortening construction timelines and lowering building costs.

AI data centers concentrate large-scale servers, power systems and cooling equipment in a single facility, making speed of construction as important as stable operation. Every delay in construction pushes back the point at which investment can be recouped.

With that in mind, Posco plans to deploy Posmac — its ultra-high-corrosion-resistant coated steel — alongside electromagnetic shielding materials and high-efficiency electrical steel.

Posmac's strong corrosion resistance makes it suitable for exterior cladding, cooling equipment and cable trays, improving durability. Electromagnetic shielding materials will support the stable operation of servers and IT equipment, while high-efficiency electrical steel used in transformers and similar components will help cut power losses.

The two companies will also explore ways to link these material technologies with data-center-specific design and cooling solutions to lower operating costs and improve space efficiency. Posco also plans to examine how it can apply energy-efficiency technology accumulated through running large-scale power generation and heating and cooling systems at its steelworks.

This year, Posco established a Future Demand Development Division to identify steel demand in new industries such as AI data centers and power grids. The company's strategy is to expand its supply range beyond conventional structural steel to include high-value materials for power and cooling systems.

GS Group is already developing a large-scale AI data center in Donghae, Gangwon Province. Through its dedicated subsidiary GS AI Infrastructure, the group plans to complete facilities totaling 1.2 GW at the Bukpyeong Second General Industrial Complex in phases from 2028, with a long-term target of expanding capacity to 2.4 GW.

The two companies intend to first build a cooperative model through large domestic AI data center projects, then expand into overseas markets including North America and Asia.

To that end, they will form a working-level consultative body to flesh out plans for building a supply chain, joint technology development and responses to overseas projects. They will also use Posco's global steel business network and GS Global's overseas connections to identify new business opportunities.

As investment in AI data centers grows, demand is expected to rise across related industries including power systems, cooling equipment and construction materials. The government has also announced plans to foster AI data centers as a national strategic industry and support the localization and technological advancement of key equipment such as power and cooling systems.

Beyond AI data centers, Posco is working to secure steel demand in advanced industries including power infrastructure and humanoid robots. The company plans to expand its high-value materials business in line with the group's "Triple Core" strategy, which designates industrial resources, strategic resources and energy resources as three pillars of growth.

"The explosively growing AI data center market is a key future market that will drive new global demand for steel and materials," Posco President Lee said. "By combining GS Group's infrastructure value chain with Posco's next-generation steel solution capabilities, we will secure a firm lead in the global AI data center market."

GS Group Vice Chairman Hong said: "AI data centers require the convergence of capabilities from diverse industries to ensure stable power supply, rapid construction and efficient operation. Through this partnership, we will combine GS Group's data center development capabilities with Posco's world-class steel materials and solutions to strengthen our competitiveness, and we will seek new growth opportunities in the global AI infrastructure market."


kwater@heraldcorp.com
yeongdai@heraldcorp.com