Hyundai Engineering has commenced construction on Korea's first dedicated AI data center. The project aims to complete construction in approximately 16 months using precast concrete methods and a fast-track approach.
On September 21, Hyundai Engineering announced that it has finalized the main contract for the 'Pohang AI Data Center Construction Project' commissioned by AI Factory Pohang PFV and has begun installing precast concrete, known as PC.
The Pohang AI Data Center is being built in the Gwangmyeong General Industrial Complex in Ocheon-eup, Nam-gu, Pohang, with a power capacity of 40 MW and an IT load of 32 MW. Construction began in June, with operations targeted for the second half of 2027.
This data center is designed specifically for AI tasks, focusing on real-time analysis and processing of large-scale data, utilizing GPU-based high-performance computing. The project developer, Neo AI Cloud, plans to establish an expandable infrastructure capable of accommodating next-generation GPUs.
Hyundai Engineering has implemented a highly concentrated environment of 100 kW per rack to support NVIDIA's latest AI chip, 'Vera Rubin,' based GPU servers. To address the cooling needs of high-heat AI servers, the company has introduced Korea's first water-cooling system and designed the energy efficiency indicator, PUE, to be 1.25, enhancing power efficiency.
To shorten the construction period, Hyundai Engineering is applying construction methods that reduce the timeline. The company plans to use the PC method extensively to meet the 16.5-month construction deadline. Instead of constructing all concrete structures on-site, major components such as slabs, walls, and stairs will be prefabricated and assembled on-site.
This approach is expected to reduce the framing construction process, which typically takes about a year, to just two months, while also improving safety and quality, according to Hyundai Engineering.
Before construction began, Hyundai Engineering utilized preconstruction services to review optimal project structures and methods, along with a fast-track approach for design, permitting, and construction preparation. This allowed the company to start construction about a month after project participation.
Since 2004, Hyundai Engineering has constructed 19 data centers, the most among domestic construction companies, starting with the Financial Settlement Center in Bundang, followed by KT Mokdong IDC, Yongin Pacific Sunny Data Center, and Naver Data Center 'Gak Sejong.' The company also has experience building data centers for global tech giants.
As the demand for generative AI grows, the competitiveness of the data center market is shifting from mere construction scale to capabilities in power supply, cooling technology, and construction speed, indicating an intensifying competition among construction firms for AI infrastructure contracts.
A Hyundai Engineering official stated, “With the recent expansion of generative AI and ultra-large AI models, the competitiveness of the data center market is shifting from scale to speed of service launch. We aim to successfully complete the Pohang AI Data Center on schedule, demonstrating our superior construction capabilities while ensuring business performance, timeline, and quality.”
Additionally, Hyundai Engineering plans to leverage its energy business capabilities to develop renewable and SMR-linked data center models tailored to regional energy characteristics, providing a total solution that encompasses power generation and data centers.
* This article has been translated by AI.
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