Hyundai Engineering and Construction to Build South Korea's First AI-Dedicated Data Center in 16 Months

[Financial News] Hyundai Engineering and Construction has begun construction of South Korea's first AI-dedicated data center.
Hyundai Engineering and Construction announced on the 21st that it had completed the main contract for the Pohang AI Data Center construction project, commissioned by AI Factory Pohang PFV, and begun installing precast concrete (PC) components.
The project, located in the Gwangmyeong General Industrial Complex in Ocheon-eup, Nam-gu, Pohang, North Gyeongsang Province, involves building an AI-dedicated data center with a power receiving capacity of 40 MW and an IT load of 32 MW. Construction began in June, and the total construction period is 16.5 months, with operations targeted to begin in the second half of November 2027. Project operator Neo AI Cloud plans to build expandable infrastructure capable of reliably accommodating next-generation graphics processing units (GPUs) to support AI model development and service operations for companies in South Korea and abroad.
The Pohang AI Data Center brings together Hyundai Engineering and Construction's differentiated technological capabilities, backed by its extensive experience building data centers in South Korea. To support GPU servers based on NVIDIA's latest AI chip, Vera Rubin, the company created an ultra-high-density environment with a power density approximately 10 times higher than that of conventional cloud data centers. It also introduced a liquid cooling system for the first time in South Korea to cool high-heat-output AI servers. The facility was designed with a power usage effectiveness (PUE) of 1.25, giving it one of the highest levels of power efficiency in the country.
The company's ability to complete the project in an exceptionally short time is particularly notable. To meet the 16.5-month construction schedule, Hyundai Engineering and Construction became the first builder of a commercial data center in South Korea to apply a precast concrete construction method to the entire concrete structure, including slabs, walls and stairs. This reduced the structural frame work from approximately one year using cast-in-place construction to just two months. The company also used a fast-track approach that combined preconstruction services, which review the optimal project method before construction begins, with design. As a result, it began construction about one month after entering the project.
A Hyundai Engineering and Construction official said, "As the speed of service launch has become a key competitive factor in the data center market, we will successfully complete the Pohang AI Data Center within the scheduled construction period. This will demonstrate our differentiated competitiveness by securing not only South Korea's leading construction capabilities, but also project performance, schedule and quality at the same time."
Since 2004, when it began with the Korea Financial Telecommunications and Clearings Institute Bundang Center, Hyundai Engineering and Construction has built 19 data centers, the largest number in South Korea, including KT Mok-dong IDC and Naver Data Center GAK Sejong. It also has experience working on projects for global big tech companies. Going forward, the company plans to provide total solutions spanning the energy value chain, including the development of data center models linked to renewable energy and small modular reactors (SMRs).

[email protected] Jeon Min-kyung Reporter