Busan Emerges as the Optimal Location for the National AI Computing Center: Introduction of Key Candidates in the Competition to Attract Data Centers Outside the Capital Region.

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The National AI Computing Center: Busan is the Optimal Location

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The government has decided to establish a national AI computing center costing up to 2.5 trillion won in non-capital areas to enhance the competitiveness of AI technology and expand domestic AI semiconductors.

This computing center is a key infrastructure for AI research and development, which is essential to jump to a global AI power. Domestic and international cloud, data center, communication, and AI company consortiums will participate in this project, and a preferred bidder will be selected in July.

Currently, various regions such as Busan, Gyeongbuk, Daegu, Gwangju, and Jeonnam are competing to attract the center, each showcasing various strengths such as power infrastructure, corporate aggregation, and data center operation experience.

For more detailed information about the national AI computing center project, please refer to the link below.

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Large Scale Participation for the Construction of the AI Computing Center: Submission of Letters of Intent by Over 100 Companies and Institutions and Competition for Attracting Non-Capital Data Centers

Comprehensive analysis of various factors leads to the conclusion that Busan is the most suitable place for the establishment of the national AI computing center.

In particular, the green data center complex project within the 강서 Eco Delta City (EDC) promoted by Busan City has been selected as the final candidate for the Ministry of Science and ICT’s project to 'Revitalize the Eco-Friendly Green Data Center Industry in 2024'. As a result, data centers from five companies are expected to settle in this area.

It is a time when the potential for Busan’s development is looking even more promising.

Strengths of Busan in Attracting the AI Computing Center

1. Strong Data Center Infrastructure

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Busan is currently a city where large data centers are operating, equipped with stable infrastructure.

LG CNS has been operating a large-scale data center in the Mieum Industrial Complex since 2013, and additional center construction is feasible. Additionally, the Hong Kong-based data center company One Asia is investing 660 billion won to build a data center in the Mieum Industrial Complex. SK Broadband and KT are also considering constructing large-scale data centers in Busan, which is expected to further expand the region's data center industry.

Busan City is creating a green data center cluster within the Eco Delta City (EDC) and is actively supporting the development of eco-friendly, high-efficiency data center technologies and the cultivation of specialized personnel. Furthermore, Cheonghae Development in Yeongdo-gu, Busan, is pushing to establish the country’s first AI-customized marine data center in collaboration with CCGI and KT.

Thus, Busan is establishing itself as a hub of the data center industry and is expected to see further growth.

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Busan Yeongdo, beginning construction of a 1 trillion won scale AI-customized marine data center - collaboration between CCGI and Cheonghae Development

Busan has a concentration of data centers operated by global companies. This indicates that the capabilities for data storage and processing, which are essential for operating an AI computing center, are already in place. This infrastructure plays a significant role in the growth of Busan's digital economy.

2. Excellent Power and Communication Infrastructure

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The AI computing center consumes huge amounts of power, making a stable power supply vital. Busan has private substations and alternative power sources, allowing for relatively cheap and stable power supply.

Moreover, 90% of the submarine optical cables pass through Busan, providing a very strong global network infrastructure. This enables Busan to establish itself as a region capable of smooth data transmission between domestic and international AI research institutes and companies. This infrastructure offers an optimal environment for AI research and development.

3. Excellent Human Resource Supply and Research Environment

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Busan is home to 22 universities that produce more than 10,000 engineering graduates annually. In particular, departments related to AI and software are active, and if an AI computing center is established in Busan, it will provide a foundation for these engineering talents to grow and settle in the region.

Additionally, Busan City promises various administrative support to foster the AI industry. Comprehensive support will include providing land, simplifying approvals, and policy support to enable companies to establish AI computing centers in Busan. These efforts are expected to make a significant contribution to the development of Busan's AI industry.

4. Potential for Collaboration with Global AI Companies

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Busan is strategically located for easy expansion of AI services into the Japanese and Southeast Asian markets. Establishing an AI computing center in Busan will enable it to act as a global data hub, increasing opportunities for collaboration with foreign companies.

In particular, the development of smart logistics and marine AI technologies linked to Busan Port is expected to significantly contribute to the economic growth of Busan.

Conclusion: Busan is the Optimal Location

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Busan has a strong data center infrastructure, stable power and communication networks, excellent human resource supply, and the potential for global AI collaboration. Due to these characteristics, Busan is evaluated as the optimal location for establishing an AI computing center.

If Busan succeeds in attracting the national AI computing center, this city will grow into a global center for the AI industry, playing a pivotal role in the development of the domestic AI ecosystem.

Therefore, for Busan to be selected as a final candidate in the future AI computing center attraction competition, active cooperation among the local community, businesses, and government is essential.

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