GS Group Unveils $11 Billion First-Phase AI Data Center Plan in South Korea

GS Group Chairman Huh Tae-soo is accelerating efforts to position artificial intelligence data centers as a new growth engine for the South Korean conglomerate, unveiling details of a 15 trillion won ($11 billion) first-stage project while simultaneously courting outside startups for cutting-edge technologies.

The Seoul-based group plans to develop a 1.2-gigawatt data center complex in Donghae, Gangwon Province, as the first stage of a broader 2.4-gigawatt plan, according to a revised business plan filed Monday with South Korea's Financial Supervisory Service. The filing designates GS AI Infrastructure as the project developer, a significant step forward from July when GS said it was still considering the 2.4-gigawatt concept without having determined the investment size, timetable or project entity.

Under the revised plan, GS aims to begin completing sections of the 1.2-gigawatt complex from 2028, contingent on customer contracts. Land acquisition, permitting and power procurement procedures are scheduled to commence this year. The first stage is expected to require approximately 15 trillion won, to be financed through a combination of project financing and equity. About 20% — roughly 3 trillion won ($2.2 billion) — is currently expected to come from equity, according to company filings.

GS will make an additional 200 billion won ($146 million) investment in GS AI Infrastructure, consisting of 80 billion won ($59 million) this month and 120 billion won ($88 million) in the fourth quarter. That will raise GS's cumulative investment in the subsidiary to 224 billion won ($164 million). The funds are expected to be used for land, permits, transmission infrastructure and other preparations before full-scale construction begins.

On Tuesday, Huh attended the 2026 GS Ventures Tech Day at GS Tower in Seoul, where seven startups specializing in power, memory, cooling and data center operations participated in an event focused on AI data center technologies. "Innovative technologies from startups can provide clues to resolving technological bottlenecks in AI data centers," Huh said. GS AI Infrastructure Chief Executive Do Hyun-soo and other company officials discussed potential business applications involving power efficiency, next-generation memory, liquid and immersion cooling, and GPU cloud services. GS said it plans to conduct follow-up discussions to determine whether the technologies can be validated and applied to its projects.

The group is seeking to combine its existing energy and construction capabilities with external technologies. GS energy affiliates GS Power, GS EPS and GS E&R have experience supplying electricity, while GS E&C, Xi C&A and DC Bridge have experience building and operating data centers. Huh aims to expand the group's role from energy supply to data center construction and operations — a strategic pivot that reflects the broader industry trend of conglomerates integrating vertically across the AI infrastructure value chain.

Major challenges remain, however, including attracting large customers, arranging project financing and securing land, permits and electricity. Because construction beginning in 2028 depends on customer contracts, demand from large customers is expected to affect both the pace of investment and financing. Industry officials said the speed at which customer contracts and financing materialize will be critical in determining whether Huh's AI data center vision develops into a sustainable new growth business for GS Group.