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South Korea AI data centers are set for a major expansion under a new national strategy announced by the government. The country plans to invest more than 1 quadrillion won, or about $650 billion, by 2035 to strengthen artificial intelligence infrastructure and improve global competitiveness.
The announcement came during a national investment briefing held at the presidential office in Cheong Wa Dae. Science Minister Bae Kyung-hoon presented the initiative in a meeting chaired by President Lee Jae Myung.
The government described the project as one of the largest technology infrastructure programs in national history. Officials said the investment will support leadership in the rapidly developing field of physical AI.
According to Bae, the next three years represent a key period for global competition. He stated that physical AI will become a national strategic industry under government leadership.
The South Korea AI data centers strategy begins with an initial investment of 550 trillion won. This phase aims to build 8.4 gigawatts of AI data center capacity by 2029.
A second expansion phase will add another 10 gigawatts by 2035. The combined capacity is expected to place the country among major global technology hubs.
Authorities plan to build much of the infrastructure outside the capital region. The approach intends to encourage balanced development and reduce regional economic differences.
Global demand for data centers continues to increase. Artificial intelligence, cloud computing, and advanced digital systems are driving this growth.
Government officials cited estimates showing global data center investment could reach $5.5 trillion during the next five years. They also referenced comments from Nvidia CEO Jensen Huang regarding the scale of current AI infrastructure development.
The South Korea AI data centers initiative also includes domestic technology development. The Ministry of Science and ICT plans to support localization of equipment and related solutions.
Tax incentives and government programs will encourage private investment. Additional plans include large AI testing facilities and industrial clusters for model development and validation.
Officials aim to reduce dependence on foreign technologies while creating a stronger domestic innovation environment.
After establishing core infrastructure, the government plans to develop a general-purpose foundation model for physical AI within three years. This world model approach could improve interaction with real environments.
Potential applications include manufacturing, logistics, healthcare, and advanced robotics. Officials expect AI integration to increase productivity across key industries by up to 20%.
The initiative reflects South Korea’s broad technology goals and signals strong confidence in long-term AI growth and economic transformation.
