NHN is accelerating its GPU business expansion by enhancing its artificial intelligence (AI) data center infrastructure. The rapid growth in related revenue is attributed to increasing demand for AI computing, which has spread beyond the public sector into private enterprises. The company aims to expand its data center operations to approximately 100MW by the end of next year and broaden its GPU supply base to sustain growth in its technology business.
During a conference call on November 10, NHN reported that its AI GPU business is achieving success in both public and private sectors. The 'FactoryX' facility established in Yangpyeong, Seoul, has sold out its GPU supply for the next five years, and revenue from the private sector, including a GPU cluster project with Krafton, has begun to be recognized.
The growth of the technology sector is evident in NHN's third-quarter performance. Revenue from the technology division reached 171.7 billion won, marking a 53.6% increase year-over-year and a 7.5% rise from the previous quarter. NHN Cloud, the company's core business, saw its consolidated revenue increase by 75.5% compared to the same period last year, while NHN Techorus, which oversees the cloud business in Japan, reported a 20.8% revenue increase. NHN Cloud maintained a stable profit structure despite the expansion of its AI GPU business.
To meet the growing demand for GPUs, the company is rapidly expanding its data center infrastructure. By the end of next year, NHN plans to operate data centers with a total capacity of approximately 100MW, including existing infrastructure. In August, the company announced plans to secure an additional 30MW, signing a lease agreement for a 20MW data center in Pohang, while the remaining 10MW will be built in the Gwangju Research and Development Special Zone, with completion targeted for the end of next year.
Additionally, NHN plans to lease a 26MW AI data center in Jangseong, Jeollanam-do, to enhance operational efficiency by consolidating infrastructure near the existing national AI data center in Gwangju.
Expansion efforts are also underway in the metropolitan area. NHN Cloud is securing additional data centers in the Seoul Gasan area and plans to deploy over 1,700 B300 GPUs in that region. Agreements with clients are nearing completion, with services expected to roll out sequentially starting in January, allowing for revenue recognition. The company aims to enhance the infrastructure of the new data centers to accommodate demand for next-generation GPUs.
NHN CEO Jung Woo-jin explained during the Q&A session of the conference call that the GPU business has been generating profits close to 30% based on past experiences. However, he noted that due to various factors such as customer demand and supply volume, it is challenging to forecast specific revenue figures from the data center expansion.
In addition to the technology sector, the payment and gaming divisions are also showing growth, supporting overall performance. NHN's consolidated revenue for the third quarter reached 758.3 billion won, a 21.2% increase year-over-year, while operating profit surged by 112.6% to 58.8 billion won, marking the highest figures for both revenue and operating profit in any quarter.
Revenue from the payment sector rose to 397.6 billion won, up 21.5% from the previous year. NHN KCP's total transaction volume for the third quarter reached 17.3 trillion won, a 30.5% increase. Notably, transaction volume from overseas merchants surged by 75.4%, accounting for a record 25.3% of total transaction volume. The gaming sector also saw revenue rise to 131 billion won, a 10.7% increase year-over-year, driven by a 16.2% increase in web board game revenue due to the Chuseok holiday and successful offline tournaments.
NHN is preparing new initiatives in the payment sector, including stablecoin and AI agent-based payment solutions. NHN KCP is participating in Google's agent payment protocol AP2 and has joined the Agentic AI Foundation under the Linux Foundation to strengthen its collaboration within the related technology ecosystem. The gaming division will focus on live operations for domestic web board games and Japanese mobile games while restructuring less profitable ventures to enhance overall profitability.
CEO Jung stated, "The balanced growth across our core businesses and the continued profitability allowed us to achieve record quarterly results in the third quarter. We aim to establish ourselves as a leading player in future growth drivers such as stablecoins, AI agent payments, and GPU services."
* This article has been translated by AI.
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