Kakao announced on the 13th that it will invest about 600 billion won to build a data center in the 3rd new town of Wangsub, Namyangju, Gyeonggi Province. This will be its second self-owned data center, with construction aimed to commence in 2026 after obtaining administrative procedures like building permits, and is expected to be completed in 2029. Kakao had previously completed its first self-owned data center at Hanyang University Erica Campus in Ansan, Gyeonggi Province, in September 2023.
On the same day, Kakao signed a memorandum of understanding for investment to establish a 'digital hub' (tentative name) at the Gyeonggi Provincial Office, attended by Kim Dong-yeon, Governor of Gyeonggi Province, Joo Kwang-deok, Mayor of Namyangju, Lee Han-jun, President of the Korea Land and Housing Corporation (LH), and Chung Shina, CEO of Kakao.
According to the agreement, Kakao will establish a 'digital hub' with a total floor area of about 92,000 square meters within the Wangsub urban advanced industrial complex in Namyangju. Kakao noted, "We are promoting the establishment of this 'digital hub' to prepare for the era of artificial intelligence (AI) popularization and to ensure the operational stability of Kakao services closely connected to the lives of all citizens," adding that "the digital hub will be developed as an AI data center capable of housing high-density servers for AI and will be designed and constructed as an eco-friendly data center that can maximize energy efficiency in addition to using renewable energy."
Kakao will also develop various win-win activities and stimulate the local economy with the construction of the digital hub. Starting from the construction stage, it will prioritize the use of local personnel and resources, and create a local win-win fund to support the digital transformation of small businesses. It also plans to operate programs to solve local issues.
Joo Kwang-deok, Mayor of Namyangju, said, "I am very pleased that this large-scale investment attraction from Kakao will allow us to launch the huge project for the transformation of the industrial ecosystem in Namyangju, which was announced last January," and added, "I will do my best to ensure that Kakao's decision to choose the Wangsub urban advanced industrial complex returns the maximum results."
Chung Shina, CEO of Kakao, stated, "Our goal is to enable all citizens to easily and conveniently use AI services in their daily lives in the era of AI popularization," and asserted, "The Kakao 'digital hub' will be established as a core infrastructure for AI popularization, and we will continue to cooperate for the development and win-win initiatives in the Namyangju area."