Google has decided to build a data center in Korea this year and is discussing a collaboration model with LG Uplus, a domestic mobile carrier, according to confirmations. Google, which had taken a cautious stance on building its own data center in Korea, has shifted toward investing in local infrastructure.
According to reporting compiled by ChosunBiz on the 5th, Google has internally decided to build a data center in Korea to use high-precision Korean map data and to advance its cloud and artificial intelligence (AI) services. Talks are underway with LG Uplus over specific collaboration models and terms. The DBO (Design, Build, Operate) model, under which LG Uplus would handle the data center's design, construction, and operations end to end, is seen as likely. Under DBO, the client outsources not only design and construction but also operations to an external provider.
Google operates data centers in three Asian countries—Japan, Taiwan and Singapore—and new data center builds are being pursued in Thailand, India and Malaysia. The industry expects that adding a Korean site would make it the seventh data center in Asia. An industry official said, "To deliver large-scale services from generative AI like Gemini, YouTube search and ads, and Google Cloud with low latency, a local data center is essential," adding, "Google building a data center in Korea sends a clear message that it views Korea as a key infrastructure hub in Northeast Asia."
Observers say Google's push for a data center in Korea is tied to the government's shift in policy on high-precision map data. The government has emphasized masking security facilities such as military bases and the need to manage core data domestically. The logic is that to expand the use of map data, there must be a foundation to carry out data processing and security measures within the country. Google is said to be finding a solution that meets the government's demands by agreeing to build a data center in Korea.
If the talks succeed, LG Uplus is expected to strengthen its position beyond a telecom operator to an AI infrastructure provider. On the 13th of last month, LG Uplus held a board meeting and passed an agenda item adding investments and grants related to data center DBO projects to its articles of incorporation as a new business purpose. The industry viewed the articles change as largely a pre-arrangement ahead of a major contract. LG Uplus currently operates seven in-house internet data centers (IDCs).
Inside and outside the industry, there is an expectation that if Google builds a data center in Korea, investment will reach the trillion-won level. In 2024, Google released plans to build data center and cloud infrastructure in Thailand and disclosed a $1 billion (about 1.4725 trillion won) investment, and later the same year proposed $2 billion (about 2.9454 trillion won) in Malaysia. In India, it announced an investment plan last year totaling $15 billion (about 22 trillion won).
However, variables remain before a final contract. Final-stage negotiations are reportedly continuing over the data center site selection, scope of design, operational responsibilities and security requirements, and pricing terms. A source familiar with LG Uplus said, "A final contract has not yet been confirmed. It is true we are in discussions with Google over pricing terms and more." A Google representative said, "It is difficult to confirm the details." An LG Uplus representative said, "That is not true. No concrete discussions are underway at this time."