Hyundai Engineering Wins 870 Billion Won AI Data Center Deal in Gunsan

First Win Comes Six Months After Creating Dedicated Data Center Unit; Priority Rights Expected on Follow-Up 240 MW Phase Picked as Preferred Bidder for Incheon and Gumi Projects; Annual Orders Could Reach 1.9 Trillion Won

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By Kim Kwang-soobright@sedaily.com
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Rendering of the new SGC AI data center project in Gunsan. Photo courtesy of Hyundai Engineering - Seoul Economic Daily Finance News from South Korea
Rendering of the new SGC AI data center project in Gunsan. Photo courtesy of Hyundai Engineering

Hyundai Engineering said on the 28th that it has won a contract to build a 60-megawatt artificial intelligence data center in Gunsan, Jeonbuk State. It is the company's first order since it set up a dedicated data center unit in March, about six months ago.

The Gunsan SGC AI Data Center project will build a data center on a 115,702-square-meter site in Bieungdo-dong, Gunsan. The total project value is about 870 billion won ($625 million), with groundbreaking planned for October.

The project is the first phase of a 300 MW AI data center cluster being developed by client SGC Group. Hyundai Engineering said it expects the work to secure priority negotiating rights for a planned 240 MW phase.

In the first phase, Hyundai Engineering will handle construction, civil engineering, equipment installation, landscaping and telecommunications work. For the mechanical, electrical and plumbing systems at the core of the facility, it will be responsible for cooling and power supply equipment including cooling towers, chillers and switchgear, while KT Cloud will handle uninterruptible power supplies, batteries and automated controls.

The Gunsan center will run on Nvidia's next-generation AI chip, Vera Rubin. The company said power density and heat output per rack are expected to rise sharply with the new chips, making the ability to build power and cooling infrastructure that can handle those loads a critical capability.

The project will also use modular and skid solutions from power and cooling equipment maker Vertiv. Under that approach, power and cooling systems including liquid cooling are prefabricated at a factory and then assembled and installed on site, which helps standardize quality and shorten build times.

Hyundai Engineering plans to use the order as a starting point to accelerate its expansion in the data center business. It has been selected as the preferred bidder for data center projects underway in Incheon and Gumi, North Gyeongsang Province, and is targeting contract signings within the year. The company said that if those projects proceed as planned, its data center orders this year would reach about 1.9 trillion won.

The company cited its experience building large-scale power and mechanical systems for industrial facilities such as auto plants, electric vehicle battery factories and shipyards. It also said it has construction optimization using building information modeling, high-load structural technology for heavy equipment, modular construction methods and precise temperature and humidity control.

The company plans to expand beyond construction into operations and maintenance and investment participation across the data center business. It will also develop energy procurement models for data centers tied to renewable energy such as solar power, small modular reactors and hydrogen.

"In the data center industry, superior infrastructure translates directly into competitive, stable digital services," a Hyundai Engineering official said. "We will use our best technology to build data centers with the stable power supply base and operating environment that the AI era demands."

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Original reporting by Kim Kwang-soo for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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