Jung Yong-jin, chairman of Shinsegae Group, has identified Chuncheon, Gangwon Province, as a strong candidate for its future artificial intelligence (AI) data center business. This comes as Gangwon Province confirmed ongoing investment discussions with Shinsegae and initiated efforts to expand the power grid, a key requirement for the data center. However, Shinsegae has not yet finalized the site, meaning further steps, including selecting a business operator and negotiating power supply, remain.
According to industry sources, Gangwon Province and Korea Electric Power Corporation (KEPCO) signed a memorandum of understanding on September 9 to promote the 'Gangwon AI Data Center.' The two parties agreed to collaborate on building a national power grid to enhance the data center's power infrastructure and ensure stable electricity supply. In March, Shinsegae entered into an agreement with the U.S. AI company ReflectionAI to construct a 250 MW AI data center in South Korea, aiming to establish a 'full-stack AI factory' that provides cloud services and customized AI solutions.
One of the most discussed potential sites is the Chuncheon Energy Cluster. Governor Woo Sang-ho stated at a press conference on September 7, "Shinsegae is exploring investment opportunities in the Chuncheon energy district, and we are meeting regularly to discuss this." However, he cautioned that no final decision has been made yet.
Previously, Shinsegae and ReflectionAI reportedly submitted a letter of intent to invest in the Chuncheon Energy Cluster, which is designed to accommodate up to 300 MW of power demand across eight data center plots. This aligns with Shinsegae's plan for a 250 MW data center.
Utilizing deep water from the Soyanggang Dam for cooling the data center is also seen as an advantage. This could reduce the power needed to cool servers and GPUs, making it a favorable condition for an AI data center that must consider both power supply and cooling costs.
Internally, the significance of the data center project is growing within Shinsegae. Shinsegae Property is responsible for site acquisition, and Jung Yong-jin was appointed as co-CEO of Shinsegae Property in June. The company plans to integrate AI transformation across its retail operations, including product sourcing, logistics, inventory, and customer management, alongside the data center development.
However, some voices caution against assuming Chuncheon as the final choice. Other companies have also expressed interest in investing in the energy cluster, and the selection process for operators is still pending. A Shinsegae Group official stated, "We are considering several locations for the AI data center, including Chuncheon, and discussions are ongoing with relevant local governments."
* This article has been translated by AI.
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