Daewoo Engineering & Construction (Daewoo E&C) announced on the 16th that it will join forces with South Jeolla Province to develop AI data centers with a total receiving capacity of 500MW.

On the same day, Daewoo E&C signed a “Memorandum of Understanding (MOU) for the Establishment of AI Data Centers” at the South Jeolla Provincial Government building with 11 public and private organizations, including South Jeolla Province, Jangseong County, Gangjin County, Benefos, KT, and Top Solar. Under the agreement, a plan will be pursued to build AI data centers with capacities of 200MW and 300MW in the areas of Jangseong County and Gangjin County in South Jeolla Province, respectively.

As the spread of AI services rapidly increases demand for data processing, securing sites that can supply large-scale power stably has emerged as a key condition for building data centers. South Jeolla Province has been under consideration as a candidate location for the project because it has conditions capable of supporting the power demand of data centers, with high levels of renewable energy production such as solar and wind power.

In this project, Daewoo E&C will participate as the consortium’s construction partner and will be responsible for the entire process of design, procurement, and construction. The company has been increasing the share of its non-residential business, including data centers, to hedge against fluctuations in the housing market, and this agreement has been promoted as an extension of that strategy.

Daewoo E&C previously took part in the “Empyrean Digital AI Campus” project in the Gangnam area and in the Jangseong Pine Data Center project in South Jeolla Province. At the Jangseong Pine Data Center, it participated both as an equity investor and as the construction contractor, building up project experience.

South Jeolla Province and the consortium participants also plan to promote local hiring and expand the participation of companies within the province during the data center construction process. They intend to cooperate so that employment and related industry demand generated by the construction and operation of the data centers will flow into the region.

Benefos CEO Lee Hyun-ho, who is responsible for project implementation, said, “We will establish stable AI infrastructure in the South Jeolla region by leveraging the technologies and supply chains of the participating companies.”

A Daewoo E&C official said, “AI data centers are facilities that require power, equipment, and construction capabilities altogether,” adding, “We will carry out the project without disruption based on South Jeolla’s power environment and Daewoo E&C’s construction experience.”

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