Hyundai E&C kicks off construction of Korea's first AI-dedicated data center, accelerating its efforts to secure a leading position in the core AI infrastructure market.

Hyundai E&C announced on the 21st that it had recently finalized the main contract for the construction of the “Pohang AI Data Center,” commissioned by AI Factory Pohang PFV, and commenced installation of precast concrete (hereinafter “PC”) components.

The Pohang AI Data Center project involves the construction of a dedicated AI data center with a 40 MW power receiving capacity and a 32 MW IT load at the Gwangmyeong General Industrial Complex in Ocheon-eup, Nam-gu, Pohang, North Gyeongsang Province. Unlike conventional data centers designed primarily for general-purpose computing, the facility will be a GPU-based high-performance data center optimized for AI workloads that require real-time analysis and processing of large volumes of data. Construction began in June, with operations targeted to commence in the second half of 2027. The total construction period is 16.5 months.

The project developer, Neo AI Cloud, plans to build the Pohang AI Data Center as a scalable infrastructure capable of stably accommodating next-generation GPUs. The company envisions supporting both domestic and international enterprises from AI model development to service operation by integrating future GPU-as-a-Service (GPUaaS) and AI platform services.

The Pohang AI Data Center is a project that brings together Hyundai E&C’s advanced technological capabilities, backed by its track record of constructing the largest number of data centers in Korea. To support GPU servers based on NVIDIA’s latest AI chip, “Vera Rubin,” the facility is designed with an ultra-high-density environment featuring approximately 10 times the power density of conventional cloud data centers. It will also introduce Korea’s first liquid cooling system to address the cooling requirements of high-heat-generating AI servers. The facility is designed to achieve a Power Usage Effectiveness (PUE) of 1.25, minimizing energy loss and delivering one of the highest levels of power efficiency in Korea.


Another notable feature is the short construction period for this high-performance AI data center. To meet the tight 16.5-month construction schedule, Hyundai E&C fully adopted the precast concrete (PC) method. While there have previously been cases in Korea where certain components, such as beams and columns, were prefabricated for commercial data centers, this is the first time that the entire concrete structure (including slabs, walls, and staircases) has been prefabricated and installed. As a result, the structural work, which would have taken about a year using conventional cast-in-place methods, has been dramatically shortened to just two months, while safety and quality are also expected to be maximized.

In addition, Hyundai E&C shortened the overall project schedule by utilizing Pre-construction Services (PCS), which involve reviewing the optimal project structure and execution approach even before groundbreaking, along with a fast-track approach that advances design, permits & approval, and construction preparations simultaneously. As a result, the Pohang AI Data Center achieved the rare feat of breaking ground just about one month after Hyundai E&C joined the project.

Meanwhile, since constructing the Korea Financial Telecommunications & Clearings Institute’s Bundang Center in 2004, Hyundai E&C has built 19 data centers, the largest number among Korean construction companies, including the KT Mokdong IDC, Yongin Pacific Sunny Data Center, and NAVER Data Center “GAK Sejong.” The company has also demonstrated global-level technological capabilities and expertise as the only Korean construction company to have built a data center for a big global tech player.

Hyundai E&C plans to leverage its strengths in the energy sector to develop data center models that integrate renewable energy and small modular reactors (SMRs), tailored to the characteristics of local energy sources. By providing differentiated, comprehensive solutions across the entire energy value chain, the company aims to simultaneously build core infrastructure for the AI era and drive energy innovation.