KB Kookmin Bank and Woori Bank have been selected as financial arrangers for the Pohang Neo AI Data Center development project, with each bank arranging 2.25 trillion KRW in funding, according to investment banking industry sources on the 13th. Hyundai Motor Securities will participate as financial advisor, while Ecopro Group is pursuing equity investment in the artificial intelligence data center project led by OpenAI, Samsung Group, and Neo AI Cloud. The total project cost is 6 trillion KRW, with 4.5 trillion KRW to be arranged by the two banks and 1.5 trillion KRW raised through regional revitalization funds. The financial arrangers aim to finalize the financial agreement in September after organizing the financing structure, construction contracts, investor negotiations, and fund investment decisions. The project represents a collaboration between global AI leader OpenAI, Samsung Group's infrastructure capabilities through Samsung SDS, and Neo AI Cloud's project management, with the data center to be built in Pohang's Gwangmyeong General Industrial Complex.
Banks Arrange 4.5 Trillion KRW Financing with Regional Fund Support
KB Kookmin Bank and Woori Bank will each arrange 2.25 trillion KRW, totaling 4.5 trillion KRW for the Pohang Neo AI Data Center project. The remaining 1.5 trillion KRW will be raised through regional revitalization funds. Forest Partners is forming a regional revitalization fund with Korea Growth Finance Investment Management to conduct equity investment of 1.2 trillion to 1.5 trillion KRW through the project fund. The financial arrangers will organize the financing structure, construction contracts, investor negotiations, and fund investment decisions before finalizing the financial agreement in September. Following the financial agreement, investors will be recruited through syndication. A Woori Bank official stated that the bank is reviewing participation in the project in the form of financial arrangement, but specific details such as participation scale and conditions have not yet been confirmed as internal review is ongoing. A KB Kookmin Bank official confirmed the bank's participation as financial arranger in the Pohang Neo AI Data Center development project.
Pohang Data Center to Start with 40MW Capacity, Expand to 200MW+
The AI data center will be built in the Gwangmyeong General Industrial Complex in Ocheon-eup, Nam-gu, Pohang City. Phase 1 will develop approximately 47,000㎡ of the total 100,000㎡ site, operating at 40MW capacity initially. The project plans to expand to over 200MW in the future. Construction will begin in the first half of this year, with operations targeted to start in the first half of next year. Neo AI Cloud will lead the project, with Samsung SDS providing core infrastructure technology and operations, while OpenAI connects internal computational demand and the global ecosystem.
OpenAI, Samsung SDS, and Neo AI Cloud Lead Development with Ecopro Investment
The Pohang Neo AI Data Center development is led by OpenAI, Samsung Group, and Neo AI Cloud. Neo AI Cloud manages the project, Samsung SDS handles core infrastructure technology and operations, and OpenAI connects internal computational demand and the global ecosystem. Ecopro Group is also pursuing investment in the data center, focusing on the energy storage system (ESS) market growth following AI data center expansion. Park Seong-bin, co-CEO of TransLink Capital and eldest son of the late Park Tae-joon (former honorary chairman of POSCO and founding chairman), played a key role in the project by continuously explaining Pohang's advantages to OpenAI while the company searched for AI data center candidate sites in Korea.
FAQ
What is the total funding amount for the Pohang Neo AI Data Center project?
The total project cost is 6 trillion KRW. KB Kookmin Bank and Woori Bank will each arrange 2.25 trillion KRW, totaling 4.5 trillion KRW, while the remaining 1.5 trillion KRW will be raised through regional revitalization funds formed by Forest Partners and Korea Growth Finance Investment Management.
When will the Pohang AI data center begin operations?
Construction will begin in the first half of this year, with operations targeted to start in the first half of next year. The financial arrangers aim to finalize the financial agreement in September, followed by investor recruitment through syndication.
What is the initial capacity of the Pohang AI data center?
Phase 1 will develop approximately 47,000㎡ of the total 100,000㎡ site in Gwangmyeong General Industrial Complex, operating at 40MW capacity initially, with plans to expand to over 200MW in the future.
