GS, POSCO join hands for future large-scale AI data center projects
GS Group Vice Chairman Hong Soon-ki, right, poses with POSCO CEO Lee Hee-geun after signing a memorandum of understanding on the two sides' cooperation in the artificial intelligence data center sector at GS Tower in Gangnam District, Seoul, Wednesday. Courtesy of GS Group
GS Group and POSCO will form a strategic partnership in the artificial intelligence (AI) data center market, combining GS Group's expertise in data center construction and operation with POSCO's high-quality steel materials and technological solutions.
GS Group said Wednesday that it has signed a memorandum of understanding with POSCO on a strategic partnership in the AI data center business. The signing ceremony was attended by GS Group Vice Chairman Hong Soon-ki, POSCO CEO Lee Hee-geun and other executives from both companies.
Through the agreement, the two companies plan to minimize delays in the supply of equipment and materials during the construction of large-scale data centers and optimize material selection and design solutions to shorten construction periods and reduce costs. These efforts are expected to facilitate the early operation of data centers and improve their profitability, GS Group said.
The agreement also includes practical cooperation to explore ways to reduce operating costs, improve space utilization and enhance the durability of facilities and equipment to strengthen the long-term operational competitiveness of data centers.
The two sides will join efforts for global market entry as well, by leveraging the overseas business networks of GS Global and POSCO to identify data center development demands and jointly explore opportunities to supply materials and equipment for overseas projects.
“AI data centers require capabilities from various industries to enable stable power supply, rapid construction and efficient operation,” Hong said. “Through this partnership, we will combine GS Group’s data center development capabilities with POSCO’s world-class materials and solutions to explore new growth opportunities in the global AI infrastructure market.”
Lee said AI data centers represent a new growth segment that will drive global demand for steel and materials, adding that the two sides will “establish a strong leadership position in the global AI data center market.”
GS Group is currently pursuing a 2.4-gigawatt data center project in Donghae, Gangwon Province, through its subsidiary GS AI Infrastructure. In September, the group announced plans to invest approximately 15 trillion won ($11.23 billion) in the first phase of the project and obtained a construction permit for its first 100-megawatt data center in October.
POSCO established a new Future Demand Development Office this year to identify business opportunities in AI data center and power grid businesses. The company is also expanding its development of high-value-added steel materials and solutions for data center applications, ranging from structural components to power and cooling equipment.