Seoul commits $919B to build 18.4GW of AI data centers by 2035
South Korea announced an 18-year sovereign AI initiative targeting 18.4 gigawatts of data-center capacity by 2035, with $919 billion in planned investment. The first phase allocates capacity among SK Group, GS Group, and Naver, while a government tournament will select a national foundation-model champion.
South Korea's plan represents one of the largest national commitments to AI infrastructure ever announced, pairing a 2035 deadline with a staggering $919 billion price tag. The 18.4 gigawatts of data-center capacity would place the country among the world's leading hosts of AI computing power, a strategic move to reduce reliance on foreign cloud providers.
The initiative's structure reveals a deliberate industrial policy: SK Group, GS Group, and Naver anchor the first phase, while a government-run tournament will crown a single national foundation-model developer. This competitive selection process signals Seoul's intent to consolidate domestic AI expertise rather than fragment it across multiple contenders.
This initiative could reshape South Korea's digital economy and national security posture, as sovereign AI capacity becomes a strategic asset akin to energy infrastructure. Businesses may gain faster access to domestic computing resources, while citizens could see AI-driven public services expand. However, the concentration of investment among a few conglomerates may raise competition concerns, and the environmental footprint of 18.4 gigawatts of data centers could strain energy grids and climate commitments.