The city of Pohang in North Gyeongsang Province held a groundbreaking ceremony for its 'Global AI Data Center' at Gwangmyeong General Industrial Complex on July 20, launching what is set to become Korea's largest data center cluster. With a total private investment of 2 trillion won, the first phase will build a 40MW-class data center capable of housing 20,000 high-performance GPUs. According to the city, once the second phase—adding roughly 260MW—is completed, this will become the largest AI data center cluster in Korea. The investor is NeoAI Cloud, and Hyundai Engineering & Construction is handling construction.
Why a Steel City Is Building a Data Center
What stands out is that this cluster is being developed not in the greater Seoul metropolitan area or a typical IT hub, but in a traditional manufacturing city. Pohang has research institutions including the 4th-generation synchrotron radiation accelerator, a strong manufacturing base, and accumulated industrial data. The rationale behind this investment is the judgment that success in AI competition depends less on the models themselves and more on securing computing infrastructure, industrial data, testbeds, and specialized talent. Industry-specific AI applications—such as real-time process data analysis or predictive maintenance—only become realistic options when large-scale computing resources are located close to the field.
More Than Just Infrastructure
Alongside the data center, Pohang is also laying the groundwork for practical implementation. The city has launched a steel industry AI platform and plans to cultivate industry-tailored master's and doctoral talent centered on POSTECH, which has been designated an