Summary

  • Naver said it has won its first computing-services supply contract worth about $14.5 billion in the AI Factory project it is pursuing with Brookfield and Nvidia.
  • The contract covers about 20 megawatts, equal to 10% of next year's 200-megawatt AI Factory target, and the company said it is discussing contracts for the remaining 180 megawatts with more than 10 companies.
  • Naver said the possibility of tighter U.S. data-center regulation could shift demand toward overseas data centers, creating an opportunity for the company, which has secured liquid-cooled data-center infrastructure.

Forecast Trend Report by Period

Liquid-Cooled Infrastructure Helps Capture GPU Demand

Tighter U.S. Data-Center Rules Could Also Be a Tailwind

Naver has won its first computing-services supply contract worth about $14.5 billion in the artificial intelligence, or AI, Factory business it is pursuing jointly with Brookfield and Nvidia. It is also in talks on additional contracts with more than 10 companies.

The contract covers about 20 megawatts of supply, equal to 10% of the 200-megawatt target for Naver's AI Factory business next year. The customer is an overseas company, and Naver will begin providing computing services in phases from the first half of next year over four to five years. Chief Financial Officer Kim Hee-cheul said on the company's third-quarter earnings conference call that discussions are under way with more than 10 companies for the remaining 180 megawatts.

Naver's competitive advantage lies in data-center infrastructure capable of stably operating the latest AI superchip platforms. Nvidia's Vera Rubin AI platform, built on its next-generation Rubin graphics processing units, requires liquid-cooling equipment because of its high heat output. Chief Executive Officer Choi Soo-yeon said Naver has secured most of South Korea's liquid-cooled data centers, allowing it to deliver the latest platforms to global customers in a timely manner.

The possibility of tighter U.S. regulation on data centers is also a potential opportunity for Naver. A Democratic landslide in the U.S. midterm elections could lead to stricter rules on data-center power consumption and site selection. If expansion in the U.S. is delayed, demand may shift to overseas data centers with stable power and cooling infrastructure. Many of the companies in talks with Naver are also monitoring U.S. regulatory moves.

Jeong Ji-eun, Korea Economic Daily reporter [email protected]

Korea Economic Daily