Pohang AI Center Secures Power and Tenants; SC Capital Partners Invests [fn Market Watch]

[The Financial News]  Singaporean real estate private equity manager SC Capital Partners has invested in South Korea’s artificial intelligence (AI) data center market. The move expands its investment focus from traditional real estate into digital infrastructure for operating high-performance graphics processing units (GPUs). In particular, a 260MW follow-on development is being pursued after the initial 40MW project, drawing attention to whether the company will make additional investments.
According to investment banking (IB) industry sources on the 12th, SC Capital Partners invested in a development project for a 40MW-class AI data center in Pohang, North Gyeongsang Province, being pursued by South Korean AI infrastructure company Neo AI Cloud. The specific investment amount and equity structure have not been disclosed. Government- and local-government-linked funding also participated in the project as an investor.
Notably, the project has substantially reduced key development risks. The data center has secured power approval and a building permit, and construction is underway. It has also secured an anchor tenant, its key tenant, at an early stage. Additional leasing demand continues for the remaining capacity as well.
AI data centers have higher power density than conventional data centers, making power availability and cooling systems decisive to a project’s viability. This project will have liquid-cooling infrastructure capable of accommodating Rubin, NVIDIA Corporation’s next-generation GPU, and others. Completion is targeted for the end of 2027.
The business model will also expand beyond colocation, which has traditionally focused on leasing server space. Neo AI Cloud plans to combine GPUaaS, which provides GPU computing resources as a service, with an AI platform to meet AI demand from companies in South Korea and abroad.
An IB industry source familiar with the matter said, “The key factors determining the viability of AI data center investments are power availability, permits and approvals, and whether pre-leasing agreements are in place.” The source added, “With foreign capital participating from the development stage of South Korea’s AI infrastructure, follow-on investment activity is also worth watching.”
SC Capital Partners is an Asia-Pacific real estate specialist manager with approximately $9.7 billion in assets under management (AUM). It manages opportunistic real estate funds such as RECAP and core-plus funds such as SCORE.
SC Capital Partners Chairman Suchad Chiaranussati said, “Government policy support for AI and digital infrastructure is creating a favorable investment environment in South Korea. We will continue to identify high-quality investment opportunities with local partners.”
Neo AI Cloud CEO Jo Yong-wan also stressed, “We will pursue not only the initial 40MW project but also a 260MW second-stage follow-on project.”
IB industry sources are watching to see whether this investment will lead to follow-on development projects. If the project expands as planned, Pohang is expected to emerge as a hub for AI data center development with a total capacity of 300MW.


[email protected] Kim Gyeong-a Reporter