What is Korea's plan for AI data center investment by 2035?

Korea plans to invest over a quadrillion won, or about $650 billion, in AI data centers by 2035. The first phase calls for 550 trillion won to build 8.4 GW of capacity by 2029, followed by an additional 10 GW expansion by 2035.

Why does the science ministry want to expand physical AI infrastructure now?

Bae Kyung-hoon said ample data is important for Korea to secure a leading position in the global physical AI race. He said the next three years will be a golden time to become No. 1 in physical AI and that the government will lead the sector by designating it a national strategic industry.

How will Korea support the AI data center and physical AI project?

The ministry said it will encourage localizing equipment and solutions used in the data centers. It also plans tax breaks, cluster development, and ultra-large test labs, and later wants to build a general-purpose foundation model for physical AI based on a world model.

Science ministry vows $650 bil. investment in AI data centers

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Summary

Korea will push for more than a quadrillion won in AI data center investment by 2035, Science Minister Bae Kyung-hoon said Monday. He announced the plan at a national investment briefing chaired by President Lee Jae Myung at Cheong Wa Dae. The ministry aims to make physical AI a national strategic industry, with 550 trillion won for 8.4 GW of data centers by 2029 and another 10 GW by 2035.

Key Facts

The ministry said infrastructure will be concentrated in non-capital areas for balanced regional development.
Bae quoted Nvidia CEO Jensen Huang as saying the current AI boom is the largest infrastructure build-up in human history.
The ministry plans to support the sector with tax breaks, a cluster ecosystem, and ultra-large test labs to optimize and validate AI models.
Once the data infrastructure is in place, the ministry plans to develop a general-purpose foundation model for physical AI in the next three years based on a world model.

By Yonhap

Published Jun 29, 2026 5:17 pm KST

Science Minister Bae Kyung-hoon speaks at a national investment briefing chaired by President Lee Jae Myung at Cheong Wa Dae, Monday. Yonhap

Korea will push for the investment of over a quadrillion won ($650 billion) in the construction of artificial intelligence (AI) data centers by 2035, the science minister said Monday.

Minister Bae Kyung-hoon unveiled the plan during a national investment briefing chaired by President Lee Jae Myung at Cheong Wa Dae, emphasizing that ample data is important for Korea to secure a leading position in the global physical AI race.

"The next three years will be the golden time to become the No. 1 in the area of physical AI," Bae said. "The government will lead the physical AI sector, by designating it as a national strategic industry."

Under the plan, an initial investment of 550 trillion won will be spent to build 8.4 gigawatts (GW) of AI data centers by 2029. The ministry will gradually expand the infrastructure by 10 GW until 2035, Bae said.

Infrastructure will be concentrated in non-capital areas for balanced regional development, he added.

"Global investment earmarked for data centers over the next five years is $5.5 trillion, or 8.4 quadrillion in Korean won," Bae said, quoting Nvidia's chief Jensen Huang, that the current AI boom is the "largest infrastructure build up in human history."

The minister also stressed the importance of localizing equipment and solutions used in the data centers, as he vowed to support the sector through tax breaks and the formation of a cluster ecosystem, as well as ultra-large test labs, used to optimize and validate AI models.

Once the data infrastructure is in place, the science ministry plans to develop a general-purpose foundation model for physical AI in the next three years, based on a world model, or AI tools that understand the dynamics of the real world.

"We will develop a sustainable growth strategy for Korea by using Physical AI to boost productivity in key industries by 20 percent and create a significant competitive edge," Bae said.

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