"Samsung Heavy Industries Expected to See Structural Growth from 'Data Centers at Sea': SK Securities"

[Financial News] Following floating liquefied natural gas production facilities (FLNGs), floating data centers (FDCs) are expected to emerge as a new growth pillar for Samsung Heavy Industries. The company could secure an additional growth engine by expanding its expertise in floating facilities, built through its shipbuilding and offshore plant businesses, into the data center market.
Han Seung-han, a researcher at SK Securities, said on the 18th that Samsung Heavy Industries is "the company moving most aggressively in the FDC business."
Samsung Heavy Industries signed a letter of intent (LOI) with OpenAI last year to jointly develop FDCs. It subsequently received Approval in Principle (AiP) for the conceptual design of a 50 MW-class FDC from the American Bureau of Shipping (ABS) and Lloyd's Register. The company also began developing a power system with ABB and signed a memorandum of understanding and an engineering contract with U.S. data center developer Mousterian (M3) to develop FDCs in the United States. More recently, it secured AiP for a 200 MW-class FDC conceptual design.
The commercialization of the business is also coming into view. Han said, "Two 50 MW-class FDCs from Samsung Heavy Industries are scheduled to be delivered for Project Zeus, with M3 serving as the developer," adding, "We expect the main EPC contract to be signed in the fourth quarter of this year." He further explained, "If the FDC order is secured, the two units will be built in parallel at Dock 2, which offers the highest efficiency."
Follow-up projects are also drawing attention. Han expects multiple Samsung Heavy Industries FDCs to be supplied for the 860 MW Project Sandpiper as well, saying, "We expect structural growth through higher performance than commercial vessels, driven by the benefits of serial production."
FLNGs, the company's existing mainstay, are also expected to support growth. Samsung Heavy Industries has secured $11.7 billion of its $13.9 billion shipbuilding and offshore order target for this year, achieving 84% of the goal. Han said, "The order target for commercial vessels has already been comfortably exceeded," adding, "With a strong possibility of securing orders for the second U.S. Delfin FLNG and the first Canadian Western FLNG within the fourth quarter, we also expect the offshore order target to be exceeded." He added, "As the company is signing contracts for high-value-added vessel types at high prices, stable earnings growth is expected to continue through at least 2028."
[email protected] Jung Won-il Reporter