KT is set to announce its plans for a hyper scale artificial intelligence data center (AIDC) within this year. Instead of establishing a separate corporation, the company is considering operating the AIDC division directly under its headquarters.
According to the IT industry on August 11, KT plans to unveil its 1-gigawatt (GW) AIDC business plan this year. Unlike competitors that have opted to create separate entities or have their group companies manage AIDC operations, KT intends to separate only the AIDC operational segment from KT Cloud. KT Cloud will continue to handle existing cloud services, while KT will directly oversee the AIDC. Construction is targeted to begin next year.
Investing directly in the AIDC without forming a separate corporation could increase financial burdens. To mitigate this, KT plans to enhance its efforts in attracting foreign investments. The company is reportedly in discussions with major overseas investors.
With KT's entry, all three major telecommunications companies in South Korea are now competing in the AIDC sector. The competition landscape, which has been stagnant for over a decade, is shifting from traditional telecommunications to cloud and now to AIDC.
KT has already accumulated significant AIDC assets and technological expertise. The Gasan AIDC has commercialized the country's first direct-to-chip (D2C) liquid cooling technology for semiconductors, and the 'AI Innovation Center' within the Mokdong 2 data center is validating next-generation technologies that enhance energy efficiency and operational stability.
KT has also laid out plans to utilize over 3,500 telecommunications offices nationwide as edge AI hubs, establishing a decentralized network alongside the central AIDC. The company's extensive network assets, including one of the largest IS networks and internet interconnection points in the country, are expected to serve as a differentiating factor in the AIDC competition.
* This article has been translated by AI.
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