GS Group and POSCO are collaborating on an artificial intelligence (AI) data center project. By combining GS's data center construction and operational capabilities with POSCO's steel materials and technology, the partnership aims to reduce construction time and costs while using the domestic project as a springboard for international expansion.
The two companies announced on November 11 that they signed a memorandum of understanding (MOU) for strategic cooperation in the AI Data Center (AIDC) sector at GS Tower in Gangnam, Seoul, with GS Group Vice Chairman Hong Soon-ki and POSCO CEO Lee Hee-keun in attendance.
GS Group will oversee the entire data center construction and operation, including project planning, power supply, design and construction by GS Engineering & Construction, and liquid cooling from GS Caltex. POSCO will provide the necessary steel materials and technological solutions for the data center's construction and power and cooling facilities.
Notably, POSCO plans to implement an Early Vendor Involvement (EVI) model, participating from the project's initial stages. This approach will involve reviewing suitable steel specifications and processing methods for structures and materials during the design phase, as well as supporting procurement plans aligned with performance testing and construction schedules.
The collaboration aims to minimize delays in material supply, shorten construction periods, and reduce costs. In the rapidly evolving AI data center sector, reducing construction time is crucial for timely deployment of the latest computing environments and early revenue generation, which are key factors for business profitability.
After establishing a track record in constructing and operating large domestic AI data centers, the companies plan to leverage POSCO's global steel network and GS Global's overseas connections to explore markets in North America and Asia. They will form a working-level consultative body to detail tasks such as building supply chains, developing technologies, and jointly responding to overseas projects.
Hong Soon-ki, Vice Chairman of GS Group, stated, "AI data centers require the convergence of various industrial capabilities for stable power supply, rapid construction, and efficient operation. By combining GS Group's data center development capabilities with POSCO's world-class steel materials and solutions, we will enhance our business competitiveness and uncover new growth opportunities in the global AI infrastructure market."
Lee Hee-keun, CEO of POSCO, remarked, "The rapidly growing AI data center sector will drive new demand for global steel and materials in the future. By integrating POSCO's next-generation steel solution capabilities into GS Group's infrastructure value chain, we will secure a strong leadership position in the global AIDC market."
* This article has been translated by AI.
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