Posco and GS Group plan to pursue AI data center construction, starting with major projects in South Korea as demand for the computing infrastructure drives new work, The Korea Herald reported Wednesday.
Posco said the firms signed a memorandum of understanding Wednesday in Gangnam, Seoul. Posco President Lee Hee-geun attended alongside Hong Soon-ki, GS Group vice chairman, the company said.
The arrangement would move Posco from its conventional late-stage supplier role into an earlier design phase through its early vendor involvement program. Under the program, Posco plans to provide custom steel solutions as projects are being designed. Proposed supplies include corrosion-resistant PosMAC alloy plates, electromagnetic shielding material intended to reduce data-processing errors and high-efficiency electrical steel. Posco also plans to apply its power generation experience and heating, ventilation and air conditioning expertise to data center operations.
GS Group will lead the wider infrastructure effort. GS E&C is slated to take on project planning, power supply, engineering and construction; GS Caltex will provide liquid-cooling solutions.
The commercial case rests on delivery speed and operating efficiency, according to The Korea Herald. The paper reported that quicker construction can let operators bring computing equipment into service sooner and begin generating revenue earlier, while power use and cooling are central to project returns. Posco argued that combining its materials role with construction and cooling could support operating stability and project profitability, the outlet reported. Lee said data center development could become an important future source of demand for Posco’s steel and materials.
The companies plan to start with large projects in South Korea led by GS Group, then seek work overseas. For those efforts, they intend to draw on Posco’s international steel network and GS Global’s overseas channels, with North America and Asia among their target regions. They expect to form a joint working group shortly to prepare implementation plans covering construction efficiency and international expansion.
