The partnership aims to position South Korea as a leading AI hub in Asia while driving large-scale investment in AI and renewable energy infrastructure.
South Korea is partnering with US investment firm BlackRock to build a large-scale “hyperscale” artificial intelligence (AI) data center hub, aiming to make the country a leading AI center in the Asia-Pacific region. The agreement, formalized on Monday through a memorandum of understanding (MOU) signed by Science
The announcement coincided with South Korean President Lee Jae-myung’s visit to New York for the United Nations General Assembly, where he met Fink to discuss strategic cooperation in AI and renewable energy.
Key Figures and Strategic Goals
The New York meeting also included Adebayo Ogunlesi, chair of BlackRock-owned Global Infrastructure Partners, former World Bank President Jim Yong Kim, and Democratic Party Rep. Cha Ji-ho. According to Ha Jung-woo, senior presidential secretary for AI policy and future planning, the initiative aims to:
- Attract capital and advanced technology projects requiring high-end infrastructure.
- Support domestic AI computing needs while accommodating regional demand.
- Establish South Korea as a regional hub for AI services in the Asia-Pacific.
President Lee emphasized South Korea’s readiness for rapid technological adoption, citing its science-savvy population and openness to innovation. Fink highlighted that AI innovation and decarbonization are inseparable global priorities, pledging to channel global capital into the nation’s AI ambitions.
Investment and Infrastructure Plans
The MOU outlines a three-pronged approach:
- Develop AI-focused data center infrastructure.
- Establish South Korea as a hub for regional AI services.
- Enable participation in international AI infrastructure projects.
Both sides plan large-scale investments over the next five years to support AI-driven renewable energy initiatives. While specific locations and capacities for the data centers were not disclosed, Rep. Cha Ji-ho suggested that initial investments could amount to several trillion won, with total potential investment scaling to tens of trillions of won after the task force finalizes joint investment portfolios.
Financial Model and Strategic Implications
BlackRock will focus on financial investment (FI), as opposed to strategic investments (SI) used by other foreign companies in Korea. This approach allows both parties to benefit from the growth of South Korea’s AI and renewable energy sectors, providing BlackRock with potential returns while strengthening the nation’s technological and energy infrastructure.
The collaboration also signals to global investors that South Korea is open to large-scale foreign investment in AI and green technology. Analysts view the move as a significant step in integrating Korea’s domestic AI development with global capital flows and emerging technological standards.
Global Context and Future Prospects
The announcement aligns with South Korea’s expanding role in global AI governance. President Lee is scheduled to chair a United Nations Security Council debate on AI as South Korea assumes the council’s rotating presidency this month. Meanwhile, Science Minister Bae and AI Senior Secretary Ha will visit IBM’s New York research facility to explore advances in quantum technology, which could further accelerate South Korea’s AI capabilities.
By combining hyperscale infrastructure, renewable energy, and global investment, the partnership could serve as a blueprint for regional AI development, reinforcing South Korea’s position as a technological and investment hub in Asia.
