GS Group is reportedly pursuing hyperscale AI data centre projects in South Korea’s Gangwon and South Chungcheong provinces, according to a Seoul Economic Daily report citing sources familiar with the matter.

GS Group is a South Korean conglomerate with businesses comprising energy and power, construction and infrastructure, retail and service, and more. 

The group recently established GS AI Infrastructure under its holding company and is in talks with the government over plans to build large-scale AI data centres in Donghae, Gangwon Province, and Dangjin, South Chungcheong Province, the report said. 

Both locations are close to existing GS power assets. GS Donghae Power, a subsidiary of GS E&R, operates a coal-fired power plant in Donghae, while GS EPS operates a liquefied natural gas combined-cycle power plant in Dangjin.

Building AI data centres near those power plants could reduce pressure on transmission infrastructure. GS Donghae Power’s coal-fired plant is understood to be operating at around 30% capacity, partly due to delays in expanding transmission links between the east coast and the Seoul metropolitan area.

A nearby AI data centre could create a large source of demand for underused generation capacity.

However, the projects have not been finalised. A GS official said consultations with the government are ongoing and that details, including site selection and project scale, have yet to be confirmed, according to Seoul Economic Daily’s report.

GS AI Infrastructure’s registered business scope covers data centre design, construction, operation and leasing.

The group could draw on several affiliates if the projects move forward. GS Power, GS EPS and GS E&R have power generation businesses, while GS E&C and Xi C&A have experience in data centre construction and operation. GS Caltex could also provide immersion cooling fluids for high-density AI data centre environments.