Elice Group to Build South Korea's First Warm-Water-Cooled AI Data Center, Unveils Coding Agent

South Korean AI infrastructure provider Elice Group is expanding on two fronts, adding enterprise AI transformation (AX) solutions while building what it says will be the country's first AI data center to use warm-water cooling above 40°C. The dual announcement signals the company's ambition to position itself as a full-stack player in the nation's rapidly growing AI economy, spanning both physical infrastructure and software enablement.

The warm-water-cooled facility marks a notable engineering departure from conventional data center designs, which typically rely on chilled water or air-based systems to manage heat loads. By operating at coolant temperatures above 40°C, the facility can significantly reduce energy consumption associated with cooling—often a major operational cost in high-density AI compute environments. Elice said the approach aligns with broader industry efforts to improve power usage effectiveness (PUE) and support the deployment of next-generation GPUs and accelerators that generate increasingly dense heat profiles.

Alongside the infrastructure play, Elice unveiled a new coding agent aimed at accelerating software development workflows for enterprises. The tool is part of the company's broader push into AX solutions, which help organizations integrate AI across their operations. By combining AI-native development tools with dedicated compute infrastructure, Elice is attempting to capture value across the AI stack—from the silicon and cooling layer up to the application layer.

The move comes as South Korea intensifies its race to build AI-ready infrastructure, with both domestic conglomerates and global cloud providers investing heavily in the region. Elice's focus on warm-water cooling could differentiate it in a market where most new projects still rely on conventional cooling technologies. Industry analysts note that warm-water cooling is gaining traction globally, particularly in Europe and North America, as operators seek to cut both energy costs and carbon footprints.

The announcement also reflects a broader trend of AI infrastructure providers diversifying into software and services to create recurring revenue streams. As competition intensifies in the data center market, offering integrated solutions—rather than just raw capacity—may become a key differentiator for companies like Elice.