Naver to build AI hub in Morocco, targeting GDPR-bound markets

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Naver to build AI hub in Morocco, targeting GDPR-bound markets

Published: 13 Jun. 2025, 14:15 Updated: 13 Jun. 2025, 14:35

Audio report: written by reporters, read by AI

A data center operated by Naver in Sejong is pictured on Nov. 8, 2023. [NAVER CLOUD]

Naver is expanding its business footprint to Europe, positioning itself as an alternative to U.S. tech giants amid rising demand for sovereign cloud infrastructure.

What’s going on?

Naver announced on Friday that it has formed a consortium with Nvidia and AI infrastructure company Nexus Core Systems to build a next-generation AI data center in Morocco with a total planned capacity of 500 megawatts.

The project aims to leverage Morocco’s multiple undersea cable connections and low electricity costs to supply efficient AI infrastructure to the European market. Phase one of the project, a 40-megawatt facility equipped with Nvidia’s GB200, will begin construction in the fourth quarter and be completed within the year.

Naver Cloud will manage the platform operations of the data center. The entire process — from data storage to processing and operation — will be performed independently in Morocco, under a sovereign cloud and AI framework.

Naver, which is already running operations in the Middle East through its Saudi subsidiary, aims to use the Morocco project as a gateway into Europe.

“Providing sovereign AI computing services across Europe, the Middle East and Africa is our goal,” said a Naver representative.

From left, Naver Labs CEO Seok Sang-ok, TAQA Morocco CEO and Chairman Abdelmajid Iraqui Houssaini, Naver Chief Strategy Officer Chae Sun-joo, Naver Cloud CEO Kim Yu-won and founder of Lloyd Group Khalid Arab pose for a photo at GTC Paris in Paris on June 12. [NAVER CLOUD]

Why does this matter?

Europe, which places a premium on data sovereignty, has become a strategic target for Naver’s sovereign cloud services. Under the European Union’s General Data Protection Regulation, local data must be processed and stored within its borders.

U.S. providers, such as Amazon Web Services, Microsoft and Google cannot fully comply with these regulations due to the U.S. Cloud Act, which allows U.S. authorities to access data held by U.S. firms even when it’s stored abroad.

Germany, France and the European Commission have all shown efforts to reduce reliance on U.S. cloud services. A total of 37 percent of European companies have already invested in sovereign cloud infrastructure, and 44 percent plan to do so by the end of the year, according to a report by Accenture.

With the European market seeking a truly independent cloud solution, industry watchers are paying close attention to whether Naver can emerge as a viable alternative.

“Our capabilities and execution in Saudi Arabia led to this global collaboration,” said Chae Sun-joo, Naver’s chief strategy officer. “We aim to play a meaningful role in the European market based on our cloud and AI.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KWEN YU-JIN [[email protected]]