SGC Energy said on the 11th it decided to set up a private equity fund (PEF) with Korea Investment & Securities Co.
SGC Energy held a board meeting that day and approved an investment agenda for the tentatively named "SGC-KIS No. 1 Private Equity Fund." SGC Energy will participate as a limited partner (LP) through an investment of 86.9 billion won. As co-general partners (Co-GP), fund managers SGC Partners, Korea Investment & Securities Co., and Harvest Equity Partners—three firms—will participate to form a core management team of five.
SGC-KIS No. 1 Private Equity Fund will promote a 60-megawatt (MW) AI data center project in Gunsan together with SGC Energy's subsidiary "SGC AI Infra." The AI data center is set to break ground in Oct., with pilot operations in the third quarter of 2027 and a target for commercial operation in the first quarter of 2028.
SGC-KIS No. 1 Private Equity Fund will design the project financing structure and handle a PF loan agreement under favorable financial terms as well as a construction contract. SGC AI Infra is expected to oversee the project, including establishing the optimal business model and strategy.
As SGC Energy has presented an on-site AI data center business model that directly supplies power from its own power plant to the AI data center as a new growth pillar, it plans to put full drive into a power-plant-integrated AI data center business.
The first goal is to have a 240 MW AI data center in commercial operation by 2030, and then build a liquefied natural gas (LNG) power plant to offer Korea's first AI energy infrastructure solution that combines an AI data center with power infrastructure.
SGC Energy has completed an application for a power system impact assessment for 240 MW and plans to pass the final review by Sept. 2028 and start construction in 2029. SGC Energy is also considering expanding its AI data center business by purchasing additional land in the Saemangeum area.
Lee Woo-sung, CEO of SGC Energy, said, "We will make every effort to build an AI data center with unrivaled quality competitiveness based on the optimal business model and financing structure," adding, "We will establish ourselves as a leading company that drives the AI energy infrastructure market by commercializing an on-site power generation-type AI data center for the first time in Korea, backed by stable cash generation and ample capital capacity."