The South Korean internet giant Kakao has announced an investment of 600 billion won (approximately $438.9 million) for the construction of a new state-of-the-art data center in Namyangju, Gyeonggi Province. This strategic move aims to consolidate the company’s artificial intelligence (AI) infrastructure and accelerate the deployment of digital services nationwide.
A “Digital Hub” to Lead the New Era of Artificial Intelligence
The agreement for the establishment of the data center, named “Digital Hub,” was formalized last Friday at a ceremony held at the Gyeonggi Provincial Government headquarters. The event was attended by Kakao’s CEO, Chung Shin-a, provincial governor Kim Dong-yeon, and other officials.
This project marks Kakao’s second major infrastructure of this kind, following the data center opened in Ansan last year. With a built-up area of 92,000 square meters, the new center will feature high-density server infrastructure optimized specifically for AI applications and next-generation technologies.
Sustainability and Local Commitment
Construction of the “Digital Hub” is set to begin in 2026, with completion expected in 2029. Kakao has emphasized that the design of the center will incorporate renewable energy sources and environmental sustainability criteria to maximize energy efficiency. This approach responds to both growing regulatory demands and the global trend toward decarbonization in the ICT sector.
Additionally, the company has announced initiatives to promote local employment and support small businesses, facilitating their digital transformation and market expansion.
A Driver of National Innovation
With this data center, Kakao aims to bolster the stability of its services and enable the extension of AI-based solutions for users across the country. According to Kakao CEO Chung Shin-a, “This ‘Digital Hub’ will be the backbone of our vision to integrate artificial intelligence into people’s daily lives. We are committed to growing alongside the Namyangju community through sustainable and inclusive innovation.”
Kakao’s investment is part of the intense competition among major South Korean tech players—such as Naver and SK Telecom—to lead in AI infrastructure, a key sector for the digital future of the country and the Asia-Pacific region. The arrival of this new data center strengthens South Korea’s position as a leader in digital transformation, sustainability, and advanced artificial intelligence services.
Source: Korea Herald