South Korean internet giant Kakao announced Friday that it would build a 600 billion won ($438.9 million) data center in Namyangju, Gyeonggi Province, marking a major investment aimed at expanding its AI infrastructure.
The agreement was formalized during a memorandum of understanding signing ceremony held at the Gyeonggi Provincial Government office, attended by Kakao CEO Chung Shin-a, Gyeonggi Province Gov. Kim Dong-yeon and other officials. Under the MOU, Kakao will invest approximately 600 billion won to construct the AI-based data center, dubbed "Digital Hub" within the Wangsuk New Town.
The project marks the company's second data center following its first facility in Ansan, Gyeonggi Province, which was completed last year.
Spanning a planned floor area of 92,000 square meters, the Digital Hub will feature high-density server infrastructure optimized for artificial intelligence and next-generation technologies. Construction is scheduled to begin in 2026 with completion targeted for 2029. The facility will incorporate renewable energy sources and environmentally friendly design principles to maximize energy efficiency.
Kakao emphasized that the project will strengthen service stability and support the nationwide rollout of AI services accessible to all users. The company also plans to engage in community partnerships by prioritizing local hiring and launching initiatives that assist small businesses in digital transformation and market expansion.
“This ‘Digital Hub’ will be the backbone of our vision to make AI part of everyday life,” said Kakao CEO Chung Shin-a. “We’re committed to growing together with the Namyangju community through sustainable and inclusive innovation.”
hyelimchung@heraldcorp.com
