Artificial intelligence (AI) data centers require not only servers and network equipment but also power supply and cooling systems to operate. Participation in related business spans a range of fields, from companies developing data centers to those supplying internal equipment and systems. Major South Korean groups are also pursuing AI infrastructure-related business through investments and supply contracts connected to their existing operations.
Capital investment and data center construction
Six Samsung affiliates, Samsung Electronics, Samsung C&T, Samsung SDS, Samsung SDI, Samsung Life Insurance and Samsung Fire & Marine Insurance, have agreed to invest a total of $1 billion in US-based Helix Digital Infrastructure. Samsung Electronics will contribute $500 million, with the other five affiliates investing a combined $500 million.
Helix is pursuing data center development and operations and power infrastructure business. The Samsung affiliates are participating as investors in Helix through this investment.
Equity investment and direct participation in data center construction and operations are distinct forms of business. While Samsung's investment involves providing capital to an infrastructure developer, SK Telecom is pursuing data center construction. SK Telecom is building an AI data center in Ulsan with Amazon Web Services (AWS), targeting operation in the second half of 2027.
In addition to data center construction, SK Group is pursuing capital contributions through AI-related investment entities. SK hynix's overseas investment plans and AI-related capital contributions by other SK affiliates differ in their investing entities and purposes. Committed capital contributions are also distinct from amounts actually paid.
AI-related technology is also being applied in manufacturing, beyond data centers. SK is pursuing business that uses AI in production processes and equipment management. While data center construction creates computing facilities, manufacturing applications introduce related technology into production processes.
US chiller factory construction and a North American supply contract
Alongside data center construction and AI technology applications, LG Electronics is pursuing cooling equipment business to handle heat generated by servers. It plans to invest a total of 150 billion won in building a chiller factory in Virginia in the United States and expanding production lines in Pyeongtaek and Changwon. The US factory is targeting production in the first half of 2027.
Separately from its production facility investment, the company has signed a cooling solution supply contract. LG Electronics signed an agreement with North American infrastructure company Air Control Concepts to supply AI data center cooling solutions. The 5 GW figure reported in connection with the contract refers to data center power capacity, not a monetary value.
LG affiliates are also participating in a data center project for Indonesia's Sinar Mas Group. LG Electronics, LG Energy Solution and LG CNS signed contracts to supply related equipment and systems. The products supplied, contract values and delivery schedules differ by affiliate.
Samsung is investing in a US infrastructure company, SK is pursuing data center construction and AI-related capital contributions, and LG Electronics is pursuing cooling equipment production facility investment and supply contracts. The three groups' cases show that participation in AI infrastructure business takes diverse forms, from equity investment to facility construction, equipment production and supply.
An industry representative said, "AI data centers are facilities that require the power supply and cooling equipment needed for server operation to be built together," adding, "The construction work and equipment configuration required vary depending on equipment specifications and site conditions."
Original Korean article: Polinews
English brief by Korea Wind Intelligence, koreawindintel.com
