Sejong, South Korea - Naver (KRX: 035420) launched its new hyper-scale data center operation, 'Datacenter GAK Sejong.'
Why It Matters:
As demand for big tech agendas like AI and ML explode, so does interest in the IT infrastructure that can power them.
NAVER's move to expand globally from its base in South Korea is notable in this tech landscape.
The Key Points
- With 294,000 square meters of space and infrastructure for 600,000 servers, the GAK Sejong data center is Naver's largest data center. Its storage capacity of 65 exabytes is one million times larger than the total data of South Korea's National Library. The data center has a power capacity of 270 megawatts, which enables computationally intensive tasks such as AI model training.
- The facility uses Naver's latest technology developments to improve operational efficiency, including a robotic automation system to track assets and self-driving shuttles. AI systems reportedly optimize the movements and tasks of robots throughout the large campus.
- As with Naver's first data center, GAK Chuncheon, sustainability is a focus for Sejong. Naver's natural air cooling system and recycling of server heat are designed to minimize environmental impact. Sejong aims for LEED Platinum certification, surpassing Chuncheon's leading green building score.
- Sejong is also applying lessons learned from Chuncheon's decade of uninterrupted uptime. Earthquake resiliency measures are in place to ensure continued service in the event of a disaster.
What They Say:
"The GAK Sejong data center is designed to be an innovation engine for the next decade and beyond," said Naver CEO Choi Soo-yeon.
Naver Cloud CEO Kim Yoo-won cited global interest in Naver's "sovereign AI" and "sovereign cloud" capabilities.
What Comes Next?
During Naver's Q3 FY2023 earnings call last week, Naver's CFO revealed that completing the first phase of the GAK Sejong investment has reduced investment costs by nearly KRW 100 billion.
In that earnings call, Naver's CFO guided that the company would increase its investment in GPUs but that the total investment cost would remain within 7% of total revenue.
By building a state-of-the-art data center, NAVER has laid the groundwork for expanding its AI services and other new technologies.
With its massive scale and advanced technology, the Sejong Data Center represents Naver's goal to be an innovation leader and provide world-class infrastructure.
Observers are eager to see the impact "Datacenter GAK Sejong" will have on the tech industry and how it will shape Naver's development in the AI and cloud sectors, primarily since the facility has only utilized 1/6th of its total capacity, which means enormous potential for future expansion.
