The US data center market is growing explosively, but Korean companies' interest in US investment remains concentrated in shipbuilding, autos, and home appliances, prompting a suggestion that they should use data centers as a new growth engine.
"Korean conglomerates are expanding their US investments, such as Hanwha's investment in a Philadelphia shipyard, but I don't see anything related to data centers," Jimmy Lee, former Secretary of Maryland's Department of Special Industries, said in an interview with Seoul Economic Daily on Monday.
According to global market research firm Grand View Research, the US artificial intelligence (AI) data center market is projected to grow at an annual average of 21.7%, from $35 billion (about 53.8 trillion won) last year to $167 billion (about 256.9 trillion won) by 2033.
"The key to building data centers is land with secured power," Lee said. "US companies have secured this land, but they lack the technical capabilities for construction and development, so they are looking for companies to form consortiums with. They are particularly interested in Korean companies." He noted that Korean companies possess capital strength, technical expertise, and construction capabilities. Above all, with US policy increasingly linking AI to national security, the US is prioritizing cooperation with its ally, Korea, he said.
"US companies seeking Korean firms want to expand data center construction not only in the US but worldwide, and they expect collaboration with Korean companies that have a global reputation to meet those goals," Lee stressed.
"The US is the country that designed the global standard for nuclear power generation," Lee said. "The US is also designing the world standard for AI and data centers, and collaborating with such a US would be a great help for Korean companies when they expand their business worldwide, including to Southeast Asia."
Lee said data center construction in the US could also be an opportunity for Korea's small and mid-sized enterprises. "Data center development requires various equipment such as batteries, cables, transformers, and cooling systems," he said. "Korean small businesses with the technology and delivery capabilities will also have opportunities to participate in the supply chain."
