SEOUL: South Korea has announced an ambitious plan to invest more than 1 quadrillion won (about $650 billion) in building artificial intelligence (AI) data centers by 2035, marking one of the largest technology infrastructure projects in the country’s history.
The announcement was made Monday by Science Minister Bae Kyung-hoon during a national investment briefing chaired by President Lee Jae Myung at the presidential office in Cheong Wa Dae.
The government said the plan is aimed at strengthening South Korea’s position in the global artificial intelligence race, particularly in the emerging field of “physical AI.”
Bae described the next three years as a critical window for global leadership in the sector.
“The next three years will be the golden time to become No. 1 in the area of physical AI,” he said. “The government will lead the physical AI sector by designating it as a national strategic industry.”
Under the strategy, the government plans to invest 550 trillion won in an initial phase to construct 8.4 gigawatts of AI data center capacity by 2029. This will be followed by an additional expansion of 10 gigawatts by 2035, bringing the total capacity to a major global scale.
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Officials said the development will be concentrated in non-capital regions in an effort to promote balanced regional growth and reduce economic disparity across the country.
The plan comes as global demand for data centers surges due to rapid advances in artificial intelligence, cloud computing, and high-performance digital systems.
Bae cited global estimates suggesting that worldwide investment in data centers could reach $5.5 trillion over the next five years, or roughly 8.4 quadrillion won. He also referenced comments from Nvidia CEO Jensen Huang, who has described the current AI expansion as the “largest infrastructure build-up in human history.”
South Korea’s government said it aims to position the country as a key player in this global transformation by rapidly expanding domestic infrastructure and technology capacity.
As part of the plan, the Ministry of Science and ICT said it will prioritize localization of AI-related equipment and solutions used in data centers. The government will also introduce tax incentives and support programs to encourage private sector participation.
In addition, authorities plan to develop large-scale AI test facilities and industrial clusters designed to support the development and validation of advanced AI models.
The goal is to reduce dependence on foreign technology while building a strong domestic ecosystem for AI innovation.
Once core infrastructure is established, South Korea plans to develop a general-purpose foundation model for physical AI within the next three years. The model will be based on a “world model” concept, enabling AI systems to better understand and interact with real-world environments.
Officials said this technology could be applied across multiple industries, including manufacturing, logistics, healthcare, and advanced robotics.
The government stated that the long-term objective of the initiative is to boost productivity across key industries by up to 20% through AI integration.
Officials described the strategy as a major step toward transforming South Korea into a global leader in AI-driven economic growth, positioning the country at the forefront of the next wave of technological innovation.
