Naver has signed a $9 billion contract with global asset management firm Brookfield to secure computing infrastructure, fulfilling a prerequisite for Nvidia's strategic investment of approximately $1 billion.
This agreement allows Naver to finalize a third-party allocation capital increase for Nvidia and to actively pursue its global artificial intelligence (AI) factory project.
Naver announced the completion of the computing infrastructure contract with Brookfield on October 27. This contract follows the announcement of its global AI factory plan on June 8, when Naver selected Brookfield as the exclusive negotiation partner for 12 weeks to formalize the contract.
Nvidia is expected to participate in the third-party allocation capital increase of about $1 billion targeting Naver's common stock. Naver plans to expedite the related procedures and disclose specific details in the future.
Brookfield will establish a special purpose vehicle (SPV) named Asset Co. to secure and manage AI infrastructure, including graphics processing units (GPUs) and data centers. The SPV, fully funded by Brookfield, aims to develop up to $9 billion in computing infrastructure by 2028. Naver Cloud plans to utilize the computing resources secured by the SPV to provide AI data center services to customers.
Although the SPV is fully funded by Brookfield, it will be accounted for as a consolidated subsidiary of Naver. Naver intends to alleviate initial investment burdens by having Naver Cloud pay infrastructure usage fees linked to business revenue, with a payment guarantee for up to eight years.
The operation of the AI factory project will be led by Naver and Naver Cloud, while Nvidia will provide GPUs and collaborate on the next-generation infrastructure platform, DSX.
Naver plans to launch a 55-megawatt (MW) AI factory in the first half of 2027, expanding to 100MW by the end of 2027 and 200MW by 2028. The long-term goal is to establish a 1-gigawatt (GW) infrastructure.
Naver aims to expand its operations globally, starting with its hyperscale data center, Gak Sejong, targeting markets in the Asia-Pacific, Europe, and the Middle East.
Naver stated, "This contract and equity investment strengthen the strategic partnership among Naver, Nvidia, and Brookfield, establishing a long-term collaborative relationship to lead the global AI infrastructure market."
* This article has been translated by AI.
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