South Korea companies have just signed an agreement to build a data center park with a commitment to spend approximately 4 trillion won ($3.6 billion).

The consortium of State-owned companies includes land developer Korea Land & Housing Corp. (LH) and Korea Data Center Council (KDCC), an organization that promotes the local data center industry.

According to the signed memorandum of understanding (MoU), the data center park or campus will be powered by green energy sources. To this end, LH and KDCC will collaborate with local power generator Korea Hydro & Nuclear Power in the development of a green energy-based data center facility integrated with energy recycling systems. The partners will also jointly initiate support measures to grow the data and alternative energy sectors.

The 968,000 square foot campus will consist of three data centers, and Korea Land & Housing Corp. plans to secure a competitive edge in the global data center market by attracting investment through issuance of public real estate investment trusts and advancing the infrastructure of the data center facilities nearby.

Korea Land & Housing Corp. and Korea Hydro & Nuclear Power also plan to jointly handle projects to install renewable energy systems in smart cities built by the government-owned company.

In June, Digital Realty Trust also announced the development of its first data center facility Digital Seoul 1 (ICN10) in South Korea, which is scheduled to be ready in Q4 2021. This facility is designed to provide 12MW of IT load capacity and will encompass about 162,000 square feet, spanning twelve floors, and located in the newly developed urban planning zone Sangam Digital Media City in northwest Seoul.

Last year, Oracle moved on to officially open its cloud region in Seoul, South Korea. This Oracle facility was launched with customers such as KEB Hana Bank, SK Stoa and the Samsung Genome Institute.