Full Breakdown
Gwangju and South Jeolla Province Compete for National AI Computing Center
10/22/2025, 11:23:44 AM
Overview of the National AI Computing Center Project
The South Korean government is advancing its efforts to establish a National AI Computing Center, a significant initiative aimed at enhancing the country's artificial intelligence infrastructure. The project, valued at 2.5 trillion won (approximately $1.8 billion), is designed to create one of Asia's largest AI infrastructure complexes by 2030. The Ministry of Science and ICT has confirmed that the Samsung SDS consortium is the sole bidder for this project, with the site expected to be located in Haenam, South Jeolla Province.
Gwangju's Aggressive Bid
Gwangju City has launched a competitive campaign to attract the National AI Computing Center, with Mayor Kang Ki-jung announcing four key support measures. These include a commitment to purchase GPUs in bulk, significant reductions in land prices, initiatives to lower electricity costs, and an investment attraction promise of up to 100 billion won. Mayor Kang emphasized that Gwangju is prepared to implement these measures, stating, "AI competition is a battle of speed and accumulation."
South Jeolla's Strategic Advantages
In contrast, South Jeolla Province is positioning itself as a frontrunner due to its abundant renewable energy resources and favorable land conditions. The Haenam Solar City, where the center is likely to be built, already hosts a substantial solar capacity of 98 megawatts, making it an attractive site for energy-intensive data centers. The provincial government is offering tax incentives and fast-tracked power grid approvals to further entice private partners. A provincial official noted that the selection of Haenam was based on site conditions and energy availability rather than political factors.
Implications for the AI Industry
The establishment of the National AI Computing Center is expected to significantly bolster South Korea's AI capabilities. The project aims to deploy over 15,000 high-performance GPUs by 2028, with plans to increase this number to 50,000 by 2030. This infrastructure is critical for AI training and model deployment, which are essential for maintaining competitiveness in the global AI landscape.
Criticism and Opposition
Despite the enthusiasm surrounding the project, there are concerns regarding the concentration of resources in South Jeolla. Critics argue that Gwangju's proposals, which include substantial financial incentives and support measures, should not be overlooked. They contend that Gwangju's existing AI data center and its commitment to creating a complete ecosystem could provide a more balanced approach to AI development across the region.
Official Statements
The Ministry of Science and ICT has indicated that the evaluation of Samsung SDS's eligibility and business participation plan will occur in two stages, with technical and policy evaluations in November and financial evaluations in December. Following these assessments, a special purpose corporation will be established, and construction is expected to begin in earnest.
What's Next
As the bidding process concludes, the Ministry of Science and ICT will finalize the location and participants for the National AI Computing Center. If the project proceeds smoothly, completion is anticipated by the end of 2028, marking a significant milestone in South Korea's ambition to become a leader in AI infrastructure.
Verbatim Quotes
“AI competition is a battle of speed and accumulation, and the only city to complete it is Gwangju.” — Kang Ki-jung, Mayor of Gwangju
“Samsung SDS’s selection appears to have been based purely on site conditions and energy availability,” — Provincial Official, South Jeolla Province
