Hyosung’s Cho Hyun-joon Turns Early Data Center Bet Into New AI Growth Engine
Hyosung is turning a data center strategy initiated nearly a decade ago into a new growth engine as surging artificial intelligence demand drives investment in digital and power infrastructure worldwide.At the center of the strategy is Hyosung Group Chairman Cho Hyun-joon, who identified data center
Hyosung, a South Korean conglomerate, has transformed its initial data center initiatives into a new growth engine, driven by the escalating demand for artificial intelligence. This strategic shift was first recognized by Hyosung Group Chairman Cho Hyun-joon in 2017, more than a decade before generative AI revolutionized the global pursuit of computing infrastructure.
Hyosung Heavy Industries operates STT Seoul 1, a hyperscale data center in Gasan-dong, southwestern Seoul, in collaboration with Singapore-based ST Telemedia Global Data Centres (STT GDC). With an IT capacity of up to 30MW, STT Seoul 1 is specifically designed to meet the burgeoning demand for AI, cloud computing, and other high-performance digital services.
Its strategic location near major business districts like Gangnam and Yeouido offers customers low-latency connectivity, an advantage in the digital services landscape.
The data center facility has earned Tier Certification of Design Documents (TCDD) from the Uptime Institute, a globally recognized certification organization for data center infrastructure. Hyosung's entry into this sector commenced before AI data centers became the technology industry's primary investment focus. In 2017, Cho initiated an internal task force to investigate potential opportunities in the data center business.
Subsequently, in 2019, he engaged in discussions with STT GDC CEO Bruno Lopez to explore a potential partnership. This dialogue culminated in a strategic alliance in 2021, merging STT GDC's expertise in data center development and operations with Hyosung Heavy Industries' capabilities in power infrastructure.
The synergy between Hyosung's power equipment business and its data center operations is increasingly significant as the adoption of generative AI reshapes the economics of data centers. The need for substantial electricity to power GPUs and servers 24/7 underscores the criticality of reliable power infrastructure in data center development.
Hyosung's extensive portfolio of power transformers, circuit breakers, gas-insulated switchgear, and other transmission and distribution equipment bolsters its position in this evolving sector.
Cho, during the unveiling of STT Seoul 1, emphasized that he had long perceived data as the "oil of the 21st century." He declared Hyosung's intent to evolve the data center business into a new growth engine and strengthen its role in the global AI ecosystem. This expansion of the data center sector represents a crucial transition for Hyosung, shifting its focus from planning and investment to the operational execution of digital infrastructure.
The overarching opportunity for Hyosung rests in the interdependence of two growing industries - the power supply infrastructure and the data processing infrastructure. As AI continues to fuel demand for both computing capacity and dependable electricity, Cho's data center venture, initiated nine years ago, is maturing into a pivotal pillar of Hyosung's growth strategy.
Written by urgent.news from Korea IT Times's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
