Kakao Corp., a major South Korean tech company best known for its mobile messaging app KakaoTalk, plans to invest $437 million to build a large-scale artificial intelligence (AI) hub in Namyangju, a city located in the Gyeonggi Province near Seoul.
Several industry sources confirmed on June 12 that Kakao has reached an agreement with Gyeonggi Province and the Korea Land and Housing Corporation (LH), a state-run agency responsible for urban development and public housing, to acquire land in the Wangsuk District, a key site within South Korea’s third-phase new town development.
The company aims to begin construction as early as next year, with operations scheduled to begin by 2030.
The development will include a hyperscale data center as part of a broader AI digital complex designed to position the area as a core national AI hub.
Government officials and Kakao are reportedly aligned in their vision to transform the Wangsuk Advanced Industrial Complex into a centerpiece for Korea’s AI ecosystem.
The project also marks a key strategic move for Kakao following the 2022 data center fire in Pangyo, which caused major disruptions to services like KakaoTalk.
In January 2024, the company launched a new data center in Ansan, and the upcoming Namyangju facility will serve as its second major data infrastructure site.
This investment is expected to be the first major corporate commitment since President Lee Jae-myung took office.
During his campaign, President Lee pledged to designate the Namyangju area as a national strategic industrial zone, making this development a potential milestone in his administration’s early economic agenda.
