Power supply and cooling equipment are major components of artificial intelligence (AI) data center construction. These projects require not only buildings to house servers but also power supply equipment and thermal management facilities. Hyundai Engineering & Construction, Hyundai Engineering, DL E&C and DL Construction are participating in related construction, while Samsung C&T's construction division is developing immersion cooling technology. SK ecoplant is also participating in the Ulsan AI data center project.
Construction scope varies by company, from power supply to cooling equipment
According to industry sources on October 27, data centers contain not only servers and network equipment but also power distribution equipment and emergency power systems, as well as chillers and cooling towers to handle heat generated by servers. The equipment required and the scope of construction vary depending on server scale, facility power capacity and cooling method.
Hyundai Engineering & Construction built Naver's Gak Sejong data center and is also participating in construction of the Pohang AI data center. Samsung C&T's construction division has developed immersion cooling technology that removes heat by submerging servers in cooling liquid and holds related patents. It is participating in data center-related business by developing server thermal management technology separately from building construction.
SK ecoplant has taken responsibility for power, telecommunications and cooling construction at the Ulsan AI data center project. Because data centers require power supplies, communications networks and cooling equipment to be built together for server operation, the construction scope of each system and coordination between work processes are important.
DL E&C completed the Gasan data center, while DL Construction won the contract to build the Bucheon AI data center. Daewoo E&C has also formed a dedicated data center task force to pursue related business. Hyundai Engineering won the contract to build the SGC AI data center in Gunsan, North Jeolla Province. The contract is worth about 870 billion won, and the facility has a capacity of 60 MW. The work includes building construction, civil engineering, equipment, landscaping and telecommunications, as well as the installation of cooling towers, chillers and power distribution switchboards.
Building permits and contract awards represent different project stages
Data center development proceeds through steps including securing land, permits and approvals, procurement and construction contracts. Industry sources explain that even if a building permit has been obtained, the entire project cannot be treated as a construction company's confirmed order value if no construction contract has been signed. The investment scale presented in a business plan is also distinct from the actual construction contract value.
A data center project being pursued by GS Group in Donghae, Gangwon Province, is understood to have received a building permit for a 100 MW first-phase facility. However, project plans and the permitting stage alone cannot establish whether a construction company will participate or the size of its contract.
The burden on construction companies also varies with their form of participation. Under a construction contract, the contractor receives payment for construction in accordance with the agreement. By contrast, participation in project development or investment can add risks associated with financing and business operations. Consequently, even large data center-related projects can affect construction companies differently depending on contract terms and the scope of participation.
While housing business is affected by sales performance and property market conditions, data center construction is affected by clients' investment plans, electricity supply conditions, permits and approvals, and contract schedules. Construction costs, equipment procurement costs and construction duration also determine profitability.
An industry representative said, "For AI data centers, it is important to reliably implement the power supply and cooling systems needed to operate servers," adding, "Ensuring technical quality during system integration and commissioning also affects actual facility operations."
Original Korean article: Polinews
English brief by Korea Wind Intelligence, koreawindintel.com
