iM Securities said on the 14th that growth for Xi S&D(317400) will accelerate as AI data center internal (captive) volumes expand and external (non-captive) orders ramp up in earnest.
Lee Sang-heon, a researcher at iM Securities, said, "Xi S&D is engaged in the construction business through its subsidiary Xi C&A, in which it holds 60% equity," and noted, "Xi C&A has expanded into data center construction based on the technological capabilities it has accumulated in high-difficulty industrial facilities such as semiconductor clean rooms and battery production facilities."
For more than 10 years, Xi C&A has pursued group captive-based data center projects for LG CNS and LG Uplus, among others. Starting in the second half of 2024, it began to secure external orders in earnest and established itself as a specialist in engineering, procurement and construction (EPC) for data centers.
A representative example is the second and third phases of construction for Naver's second in-house data center, "Gak Sejong," which started in January this year and is underway. It is also carrying out the construction of one building at LG Uplus's Paju AI data center, which is scheduled for completion in June next year.
The researcher analyzed, "GS Group is pushing to build a 1.2 GW AI data center in Donghae, and the first 100 MW facility could break ground as early as November," adding, "Participation by Xi C&A in the construction segment is expected to become visible."
He added, "An expansion of AI data centers at existing client LG affiliates, the full-fledged ramp-up of external orders from clients such as Naver, and the addition of the Donghae AI data center project will combine to make order growth visible," and said, "Xi S&D's growth potential will also accelerate further."