Hyundai Engineering has secured a contract worth approximately Won870bn ($625m) to construct a 60MW AI data centre in Gunsan, South Korea for SGC Group.
The project occupies a 115,702m2 site in Bieungdo-dong, Gunsan, Jeollabuk-do, and represents the opening phase of a broader 300MW AI data centre cluster that SGC Group is developing. The groundbreaking is expected to be held next month.
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Under the first-phase scope, Hyundai Engineering will deliver building, civil engineering, equipment installation, landscaping and telecommunications work. The company will also take responsibility for cooling and power distribution systems, encompassing cooling towers, chillers and switchgear.
KT Cloud will separately oversee uninterruptible power supplies, batteries and automated controls.
The data centre is expected to deploy Nvidia’s next-generation Vera Rubin AI chip. Hyundai Engineering noted that the transition to advanced AI processors will substantially increase power density and thermal output per rack, placing a premium on robust power and cooling infrastructure.
Prefabricated modular and skid-mounted equipment from Vertiv, including liquid cooling systems, will be assembled on site to help standardise quality and compress construction schedules.
The contract arrives six months after Hyundai Engineering established a dedicated organisation for high-tech industrial architecture in March, positioning data centres as a future growth pillar. The company said it anticipates the Gunsan award will give it priority negotiating rights for a planned 240MW subsequent phase.
Beyond Gunsan, Hyundai Engineering has been named preferred bidder on separate data centre developments in Incheon and Gumi, North Gyeongsang Province. If those contracts are finalised this year, the company expects its cumulative data centre orders to reach roughly Won1.9tn.
Looking ahead, Hyundai Engineering intends to broaden its data centre involvement beyond construction to encompass operations, maintenance and equity participation.
A Hyundai Engineering official said: “In the data centre industry, superior infrastructure translates directly into competitiveness in stable digital services.
“We will use the best available technology to build data centers with the reliable power supply base and operating environment that the AI era demands.”
