South Korea unveils public-private AIDC Alliance in data center market share push
Lee Jae-Myung at the World Economic Forum - Annual Meeting of the New Champions in Tianjin, People's Republic of China 2018. (Copyright by World Economic Forum / Sikarin Thanachaiary)
- South Korea’s government and 12 major companies launched the AIDC Alliance to build 18.4GW of AI data centers.
- Seoul is trying to convert its semiconductor strength into a data-center export industry within a self-imposed three-to-five-year window.
- The country’s ambitions are backed by a state fund set to reach 200 trillion won.
South Korea’s government and 12 of its largest tech, power, and cooling companies have launched a public-private body called the AIDC Alliance.
The aim of the group is to build 18.4 gigawatts of AI data centers and turn the country into an exporter of “intelligence tokens.”
What is the AIDC Alliance?
The Ministry of Science and ICT (MSIT) hosted the launch of the newly formed AIDC Alliance at Lotte Hotel Seoul with roughly 400 people from industry, academia, and four government ministries.
The alliance is the result of a coalition between South Korea’s government and 12 major companies. The public-private group aims to build 18.4 gigawatts (GW) of AI data centers and turn the country into an exporter of “intelligence tokens,” which are the raw output of AI computation.
Its first private co-chair is Jeong Jae-heon, the chief executive of SK Telecom (KRX: 017670) and the chairman of the Korea Information and Communication Industry Association.
Alongside SK Telecom (KRX: 017670), the leadership group names Naver Cloud, Samsung SDS (KRX: 018260), NHN Cloud, LS Electric, LG Uplus (KRX: 032640), LG Electronics (KRX: 066570), GS (KRX: 078930), Kakao (KRX: 035720), KT (KRX: 030200), KT NF, and the chip designer FuriosaAI.
Work is divided into three subcommittees and an export task force. Naver Cloud tests domestic data-center technology and helps local firms build delivery records they can show foreign buyers.
LG Electronics (KRX: 066570) focuses on localizing power, cooling, and IT equipment. Kakao (KRX: 035720) tackles permits and siting and workforce training, with the state-run IITP acting as secretariat.
The alliance exists to carry out the “AI Data Center National Strategy Industrialization” plan, which Seoul unveiled on June 29 as one of three megaprojects.
Beyond the 18.4GW build target, the plan covers clusters, large testbeds, and exports of the upstream and downstream industries that feed data centers.
The AIDC’s subcommittees and the task force will draw up roadmaps in the third quarter of 2026, while the fourth quarter will bring the first leadership meeting, next year’s budget, draft enforcement rules for the AIDC Special Act, and cluster plans.
In the first quarter of 2027, a dedicated project group will launch, and the designation of cluster special zones will begin.
How will the AIDC project be funded?
The Vice Chairman of the Financial Services Commission, Kwon Dae-young, said the current 150 trillion won National Growth Fund (roughly $127 billion) will grow to 200 trillion won (about $133-134 billion) next year.
Kwon said 30% to 40% of that money should be directed into AI, semiconductors, and power, and he directed that the funds should reach mid-sized, small, and venture firms and regional areas, not only large conglomerates.
The National Growth Fund was launched late last year to foster strategic high-tech industries, including AI, semiconductors, and renewable energy. The government had initially planned to raise up to 150 trillion won over five years, but now plans to scale it up by 50 trillion won.
The FSC also plans to establish the Korea Strategic Technology Partners (KSTP), a new investment management company focused on long-term capital for breakthrough technologies, targeting areas like quantum supercomputing and AI semiconductors.
Nvidia (NASDAQ: NVDA) recently said it would invest about $1 billion in Naver (KRX: 035420) and help expand its GAK Sejong data center from 55 megawatts to 200 megawatts by 2028, with Brookfield proposing up to $9 billion.
The combined semiconductor and data-center deals announced by Samsung, SK Group, and Nvidia during President Lee Jae-myung’s July trip to San Francisco amounted to roughly $700 billion.
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FAQs
What is the AIDC Alliance?
It is a public-private body launched by South Korea's Ministry of Science and ICT and 12 companies, including SK Telecom, Naver Cloud and LG Electronics, to build 18.4 gigawatts of AI data centers and export the industry overseas.
Who is leading the alliance?
It runs under a co-chair system between MSIT and the private sector, with SK Telecom CEO Jeong Jae-heon serving as the first private co-chair, and it splits work across demand, supply and foundation subcommittees led by Naver Cloud, LG Electronics and Kakao.
How will South Korea fund the AI data center push?
Financial Services Commission Vice Chairman Kwon Dae-young said the 150 trillion won National Growth Fund will expand to 200 trillion won next year, with 30% to 40% channeled into AI, semiconductors and power.
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Hannah Collymore
Hannah is a writer and editor with nearly a decade of blog writing and event reporting experience in the crypto space. At Cryptopolitan, Hannah contributes to the news page, reporting and analyzing the latest developments in DeFi, RWA, crypto regulation, AI and frontier tech industries. She graduated from Arcadia university with a degree in Business Administration.
