Samsung SDS to Build $295 Million Data Center in Gumi, South Korea

Samsung SDS to Build $295 Million Data Center in Gumi, South Korea

January 06, 2026

Samsung SDS, the IT services arm of the South Korean conglomerate, announced a significant investment in domestic digital infrastructure with plans to construct a new data center in the city of Gumi. This move underscores the intensifying focus on artificial intelligence and cloud computing capabilities within the country's leading industrial groups, as they seek to secure the foundational compute power required for future growth.

The company confirmed on Friday that it will invest 427.3 billion won, equivalent to approximately $295 million, to build the facility in North Gyeongsang Province. The data center will be constructed on the site of the former Samsung Electronics Gumi Plant 1, a location specifically acquired by Samsung SDS for this purpose in 2024. According to local reports, the facility is slated to become operational by 2029 and is expected to attract up to an additional 4 trillion won ($2.7 billion) in follow-on investment.

While specific details regarding the facility's capacity and physical size were not disclosed, the project represents a major expansion of Samsung SDS's national footprint. The company currently operates data centers across 18 locations in South Korea. This new build aligns with a broader strategic push by the parent Samsung Group, which last November unveiled a massive 450 trillion won ($308 billion) domestic investment plan targeting AI and semiconductor-related industries.

The announcement carries particular weight within the context of recent geopolitical economic arrangements. It comes amid domestic concerns that a major tariff and investment deal with the United States, which commits South Korea to channel $350 billion into American industries, might divert critical capital away from local infrastructure projects. Samsung's commitment to the Gumi data center is therefore viewed as a counterbalance, signaling a sustained dedication to strengthening South Korea's own technological backbone and ensuring it remains competitive in the global AI race.

Source: datacenterdynamics