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Samsung SDS and Samsung C&T Partner to Build Modular AI Data Center in Chuncheon

Region: East Asia

Samsung SDS is joining forces with Samsung C&T to develop a modular artificial intelligence data center (AIDC) in Chuncheon, Gangwon Province, marking the latest move by South Korea’s tech conglomerate to expand its AI infrastructure footprint. The project comes amid surging demand for AI computing capacity across the region, driven by the rapid adoption of large language models and generative AI applications.

According to industry sources, Samsung C&T has filed a construction permit application for the facility, which will be built on a 37,475-square-meter plot adjacent to Samsung SDS’ existing data center in Chiljeon-dong, Chuncheon. Samsung SDS has operated a data center at the site since 2019, and the new AIDC will occupy idle land within the same campus. Samsung C&T will oversee construction, while Samsung SDS will manage operations once the facility is live.

The initial phase of the new AIDC is expected to deliver approximately 2.4 megawatts (MW) of capacity, with plans to scale up as demand increases. The modular design of the facility will allow for easier expansion, enabling flexible responses to shifting market conditions. The companies are also reportedly considering deploying NVIDIA’s latest Blackwell graphics processing units (GPUs) to power the site’s AI workloads. Earlier this month, Samsung C&T was found recruiting on-site construction management personnel, with employment contracts set for 18 months, indicating that construction is expected to begin this summer and reach completion by next fall.

The Chuncheon project is part of a broader strategy by Samsung SDS to establish a second AI data center hub in the Gangwon region. The company is already a key participant in a consortium with Naver Cloud, Samsung C&T, Samsung Electronics, Kakao, and KT to build the National AI Computing Center in Haenam, South Jeolla Province—a project with a total investment of approximately 2.5 trillion won, scheduled for completion and opening in October 2028. Industry observers view the Chuncheon AIDC as a complementary initiative that will help Samsung SDS meet rapidly growing demand for AI data center capacity in the region.

A Samsung SDS spokesperson said the Chuncheon data center is being pursued as a pilot project with Samsung C&T and that no details beyond the construction permit application have been finalized.

Source: thelec