South Korea Begins Review of Hyundai Motor Group’s $6.5 Billion AI Data Center Plan

South Korea Begins Review of Hyundai Motor Group’s $6.5 Billion AI Data Center Plan

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Review begins for major Saemangeum project

The Saemangeum Development and Investment Agency said on the 24th that it has begun reviewing Hyundai Motor Group’s construction plan for an artificial intelligence data center in Saemangeum, a large industrial development area on South Korea’s west coast.

The facility is planned for Section 7 of Saemangeum Industrial Complex 1, with construction scheduled to begin in March 2027. The agency expects the written review to conclude in October and plans to complete the industrial occupancy agreement and building permit process by the end of the year.

A 30-member building committee will conduct the review, including 25 private-sector experts and five government-appointed members. The panel covers architecture, structural safety, urban planning, landscape design, construction, disaster prevention and transportation. Seven members specialize in transportation, reflecting concerns about access routes and congestion at the large facility.

AI computing for autonomous vehicles and robots

Hyundai Motor Group announced in February that it would invest about 9 trillion won, or roughly $6.5 billion, in Saemangeum. Of that amount, 5.8 trillion won is designated for the AI data center, which is expected to use 50,000 graphics processing units to train autonomous driving systems and robots.

The two-story building would be classified as a broadcasting and communications facility. It would occupy a site of 150,312 square meters, or about 37 acres, and have a total floor area of 101,950 square meters, or nearly 1.1 million square feet. The center is intended to support “physical AI,” a term for artificial intelligence systems that operate in machines interacting with the real world, including vehicles and robots.

Saemangeum agency chief Moon Seong-yo described the review as the first visible step toward carrying out Hyundai’s investment and said the agency would provide administrative support to help ensure the building is safe and efficient.

Hydrogen and solar plans face infrastructure questions

Construction of related solar power and hydrogen production facilities is scheduled to begin in phases from late 2027. Hyundai is investing about 1 trillion won in a water electrolysis plant, with the first phase targeted for completion in 2029. A separate solar power project costing 1.3 trillion won is planned to supply electricity to the data center, an AI-focused hydrogen city and the electrolysis plant.

Under the government’s plan, Saemangeum would produce about 80 metric tons of green hydrogen per day beginning in 2029 and supply nearby industrial areas, including Jeonju and Wanju. Green hydrogen is produced using electricity from renewable sources.

Key details of the distribution network remain unresolved. Government bodies are still discussing the pipeline route, length, construction schedule, cost-sharing arrangements and which organization would lead the project. Officials also have not determined how much hydrogen would be used within Saemangeum and how much would be sent elsewhere. Tube trailers are being considered as an initial transportation option while agencies continue negotiations.

Source: Original Korean article - Trendy News Korea

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