The South Korean government and 12 of its largest technology, energy and refrigeration companies have launched a public-private body called the AIDC Alliance.
The group’s goal is to build 18.4 gigawatts of AI data centers and turn the country into a source of “intelligence codes.”
What is the AIDC Alliance?
The Ministry of Science and ICT (MSIT) hosted the launch of the newly formed AIDC Alliance at Lotte Seoul Hotel in the presence of nearly 400 people from industry, academia and four government ministries.
Alliance It is the result of an alliance between the South Korean government and 12 major companies. The public-private consortium aims to build 18.4 gigawatts of AI data centers and turn the country into a source of “intelligence tokens,” which represent the raw output of AI calculations.
Its first special co-chair is Jeong Jae-hyun, CEO of SK Telecom (KRX: 017670) and president of the Korea Information and Communications Industry Association.
Besides SK Telecom (KRX: 017670), the leading group includes the names Naver Cloud, Samsung SDS (KRX: 018260), NHN Cloud, LS Electric, LG Uplus (KRX: 032640), LG Electronics (KRX: 066570), GS (KRX: 078930), and Kakao. (KRX: 035720), and KT. (KRX: 030200), KT NF, and chip designer FuriosaAI.
The work is divided into three subcommittees and an export working group. Naver Cloud tests local data center technology and helps local companies build delivery records they can show to foreign buyers.
LG Electronics (KRX: 066570) focuses on the localization of power, cooling and IT equipment. Kakao (KRX: 035720) handles permitting, siting and workforce training, with the state-run IITP acting as secretariat.
Alliance It exists to implement the “National Strategic Industrialization of AI Data Center” plan, which Seoul unveiled on June 29 as one of three mega projects.
In addition to the build-out target of 18.4 GW, the plan covers clusters, large test units and upstream and downstream industry exports that feed data centres.
The AIDC subcommittees and task force will develop roadmaps in the third quarter of 2026, while the fourth quarter will see the first leadership meeting, next year’s budget, draft implementation rules for the AIDC private law, and cluster plans.
In the first quarter of 2027, a dedicated project group will be launched, and the designation of cluster special areas will begin.
How will the AIDC project be funded?
Financial Services Commission Vice Chairman Kwon Dae-young said the current 150 trillion won (about $127 billion) National Growth Fund will grow to 200 trillion won (about $133-134 billion) next year.
Kwon said that 30% to 40% of these funds should be directed to artificial intelligence, semiconductors and energy, and directed that the funds should reach medium and small companies, enterprise companies and regional regions, and not just large conglomerates.
The National Growth Fund was launched late last year to promote strategic high-tech industries, including artificial intelligence, semiconductors and renewable energy. The government had initially planned to raise up to 150 trillion won over five years, but now plans to increase the amount by 50 trillion won.
FSC also plans to establish Korea Strategic Technology Partners (KSTP), a new investment management firm focused on long-term capital for companies. Hacking techniqueswhich targets areas such as quantum supercomputing and semiconductors with artificial intelligence.
Nvidia (NASDAQ: NVDA) recently said it would invest about $1 billion in Naver (KRX: 035420) and help expand the GAK Sejong data center from 55 megawatts to 200 megawatts by 2028, with Brookfield proposing up to $9 billion.
Combined Semiconductor and data center deals It was announced by Samsung, SK Group, and Nvidia during President Lee Jae-myung’s trip in July To San Francisco it amounted to about $700 billion.
