Kakao to build $438M second data center in Namyangju

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Kakao to build $438M second data center in Namyangju

Published: 13 Jun. 2025, 15:32

Audio report: written by reporters, read by AI

From left: Namyangju Mayor Joo Kwang-deok, Gyeonggi Gov. Kim Dong-yeon, Kakao CEO Chung Shin-a and Korea Land and Housing CEO Lee Han-joon pose for a photo during a signing ceremony for Kakao's investment in a new digital hub at the Gyeonggi provincial government office on June 13. [KAKAO]

Kakao, the operator of Korea's most-used mobile messenger, signed an agreement with state agencies to invest 600 billion won ($438 million) to build its second proprietary data center in Namyangju, Gyeonggi, the tech firm said Friday.

Kakao said it had signed a memorandum of understanding with the provincial and city governments of Gyeonggi and Namyangju and Korea Land and Housing Corporation (LH) to establish a “Digital Hub” at the Gyeonggi provincial government office on Friday.

Gyeonggi Gov. Kim Dong-yeon, Namyangju Mayor Joo Kwang-deok, LH CEO Lee Han-joon and Kakao CEO Chung Shin-a attended the signing ceremony.

Under the agreement, Kakao plans to build the digital hub on a 92,000-square-meter (23-acre) site within the Wangsuk Urban Advanced Industrial Complex in Namyangju. This will be Kakao’s second proprietary data center, following the one in Ansan.

The company aims to complete the project by 2029, starting construction next year after completing administrative procedures such as securing building permits.

“The goal of this initiative is to ensure service stability across Kakao’s platforms and to prepare for the era of AI for everyone,” the company said.

The new data center will host high-density servers specifically designed for AI and future technology applications. It will also use renewable energy, aiming for high energy efficiency.

Kakao also committed to contributing to the surrounding economy through the construction and operation of the facility. The company plans to prioritize hiring local labor and sourcing nearby materials during the building process.

“Our goal in the age of AI for all is to enable every citizen to use AI services easily and conveniently in their daily lives,” Chung said.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY KIM NAM-YOUNG [[email protected]]