Seoul: South Korea will push for the investment of over a quadrillion won (US$650 billion) in the construction of artificial intelligence (AI) data centers by 2035, the science minister said Monday. Minister Bae Kyung-hoon unveiled the plan during a national investment briefing chaired by President Lee Jae Myung at Cheong Wa Dae, emphasizing that ample data is important for South Korea to secure a leading position in the global physical AI race.
According to Yonhap News Agency, Bae described the next three years as a critical period to achieve dominance in physical AI. The government aims to lead the sector by designating it as a national strategic industry. An initial investment of 550 trillion won will be allocated to build 8.4 gigawatts (GW) of AI data centers by 2029, with plans to gradually expand the infrastructure by 10 GW until 2035.
The infrastructure will focus on non-capital areas to ensure balanced regional development. Bae cited Nvidia's chief Jensen Huang, noting that the current AI boom represents the "largest infrastructure build up in human history," with global investment in data centers projected to reach US$5.5 trillion over the next five years.
The minister highlighted the necessity of localizing equipment and solutions for these data centers and pledged support through tax incentives and the formation of a cluster ecosystem. Additionally, ultra-large test labs will be established to optimize and validate AI models.
Once the data infrastructure is established, the science ministry plans to develop a general-purpose foundation model for physical AI within the next three years. This model, based on AI tools that understand real-world dynamics, aims to enhance productivity in key industries by 20 percent and provide South Korea with a competitive advantage.