Establishment of National AI Computing Center Accelerated through Public-Private Cooperation
The government is actively promoting the establishment of a national AI computing center with a scale of up to 2 trillion won to strengthen artificial intelligence (AI) technology competitiveness and expand the use of domestic AI semiconductors.
This project has garnered significant interest from domestic and international companies and local governments, with over 100 companies and institutions submitting letters of intent to participate.
In particular, since data centers are expected to be installed outside the capital region, several local governments, such as Daegu, Gyeongbuk, Gwangju, Jeonnam, and Busan, are competing to attract them. This movement is anticipated to positively impact the revitalization of the local economy.
Building Key Infrastructure in the Era of AI Transformation
The Ministry of Science and ICT announced the 'Execution Plan for Establishing the National AI Computing Center (SPC establishment)' through the Cabinet meeting on January 22. The main goal of this project is to secure key infrastructure to leap into the global top three AI countries (G3).
The government plans to establish a special purpose corporation (SPC) based on public-private cooperation to build the national AI computing center. The equity structure of the SPC will allocate 51% to the public and 49% to the private sector, reflecting both policy objectives and private expertise.
The AI computing center will provide high-performance AI computational resources based on advanced semiconductors, focusing on supporting domestic research and development (R&D) and corporate innovation. In particular, the government aims to create initial demand for domestic AI semiconductors by promoting the introduction of neural processing units (NPU) and processing-in-memory (PIM).
This plan is expected to contribute to Korea establishing global competitiveness in the AI field.
Over 100 Companies and Institutions Submit Letters of Intent
As of February 28, the deadline for submitting letters of intent to participate in the national AI computing center project, it has been confirmed that over 100 domestic and international companies and institutions have submitted documents.
The companies that expressed their intention to participate span various industries, including cloud, software, data center operations, telecommunications, and construction, and also include local governments and investors. However, some companies are contemplating participation in the bidding due to uncertainties surrounding profit models.
In relation to this, the Ministry of Science and ICT and the National IT Industry Promotion Agency (NIPA) plan to hold unofficial briefings to respond to inquiries from companies and discuss concrete plans for promotion. They hope this process will help in motivating companies to participate.
Local Government Competition to Attract AI Computing Center
The AI computing center is expected to be established in one location outside the capital region, leading major local governments such as Daegu, Gyeongbuk, Gwangju, Jeonnam, and Busan to compete for its attraction.
Daegu City is consulting with related companies to attract the AI computing center to the area where the Daegu-Gyeongbuk Integrated New Airport and the Suseong Alpha City will be located. Gyeongbuk Province is leveraging the stable power network secured through the operation of the 13th nuclear power plant as a strong point in the competition.
Busan City is highlighting its advantages as an international data center hub, conducting negotiations with LG CNS, KT, MS, and BNK Financial Group. In particular, they emphasize that 90% of domestic optical cables pass through Busan.
Gwangju City plans to position itself as the largest AI infrastructure center in the country by utilizing companies and supply chains associated with existing AI data centers. Jeonnam Province has joined the competition by leveraging its abundant renewable energy resources and established location.
Each local government expects to gather related companies and research institutions through attracting the AI computing center, thereby invigorating the local economy and anticipating an economic ripple effect of over 2.5 trillion won. This competition will be an important opportunity to drive development and innovation in each region.
Concerns of Companies: Uncertainty of Profit Models
This project is being conducted under a structure where private companies will invest 400 billion won to establish an SPC with the government. Afterward, a total of 2 trillion won will be invested through policy financing to operate the AI computing center and secure additional computation resources.
However, some companies are hesitating to participate in the bidding due to maintenance costs, reinvestment burdens, and difficulties in forecasting domestic market demand. In light of these circumstances, the Ministry of Science and ICT stated that, "If additional discussions are necessary, we will review them through the Special Committee on AI Computing Infrastructure," and expressed its intention to devise policy support measures that can alleviate the burdens of companies.
It remains to be seen whether these policy responses can lead to increased participation from companies.
Future Schedule and Expected Effects
The government will accept business proposals until May and will finalize the selection of companies and locations in August. Afterward, they plan to establish the AI computing center by 2027, and from November this year, they intend to provide some AI computing services early.
Once the national AI computing center is completed, it is expected to greatly improve the domestic AI research and development environment. In addition, this center is also likely to contribute to the growth of the domestic AI semiconductor, cloud, and AI service industries.
This project is an important initiative to lay the foundation for Korea to leap into a global AI powerhouse. It is anticipated that cooperation between the government, companies, and research institutions will further strengthen the competitiveness of the future AI industry.
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