Company aims to strengthen position in Korea’s fast-growing digital infrastructure market
Hyosung Group has officially entered South Korea’s rapidly expanding data center market through a strategic partnership with Singapore-based data center operator ST Telemedia Global Data Centres (STT GDC), marking a significant step in its long-term artificial intelligence (AI) and digital infrastructure strategy.
The two companies recently established a joint venture, Hyosung-STT GDC, and inaugurated “STT Seoul 1,” a 30-megawatt hyperscale data center located in Seoul’s Gasan district. The facility combines Hyosung’s expertise in power infrastructure with STT GDC’s global standards in data center design and operations.
The launch comes as demand for AI computing power, cloud services, and high-capacity digital infrastructure continues to surge worldwide. Industry analysts expect South Korea’s data center market to grow significantly over the coming years, driven by increasing adoption of AI technologies and digital transformation initiatives across industries.
Unlike many newly developed data centers that are being built in suburban areas due to power supply constraints, STT Seoul 1 is strategically located within the Seoul metropolitan area. Its proximity to major business districts such as Gangnam and Yeouido is expected to help reduce data transmission latency and improve service responsiveness for enterprise customers.
The facility has also obtained Tier III certification from the Uptime Institute, demonstrating a high level of operational reliability and redundancy. The certification indicates that maintenance activities can be performed without disrupting ongoing services, a key requirement for mission-critical digital infrastructure.
Hyosung plans to leverage capabilities across its business portfolio to support the new venture. Hyosung Heavy Industries will provide advanced power equipment and energy-efficiency technologies, including ultra-high-voltage transformers and circuit breakers, while also strengthening its expertise in data center construction.
Meanwhile, Hyosung ITX will contribute nearly three decades of experience in cloud services, content delivery networks (CDN), and digital transformation solutions to enhance traffic management, operational efficiency, and cybersecurity systems.
According to industry observers, the project reflects Hyosung Chairman Cho Hyun-joon’s broader vision of positioning data centers as one of the group’s future growth engines. Hyosung began exploring opportunities in the sector as early as 2017 and accelerated discussions with STT GDC after meetings between Cho and STT GDC executives.
The partnership aligns with growing global investment in AI infrastructure, where data centers have become a critical foundation for advanced computing, cloud platforms, and next-generation digital services.
Industry experts note that as AI adoption accelerates, demand for reliable, high-capacity data centers is expected to rise sharply. Companies with strengths in power infrastructure and digital operations are increasingly viewed as well positioned to capture opportunities in this evolving market.
With the opening of STT Seoul 1, Hyosung is expected to expand its presence in Korea’s AI infrastructure sector while exploring additional opportunities in the broader global digital ecosystem. The company views data centers as a strategic platform that connects its strengths in energy, engineering, and information technology, supporting its ambition to become a key player in the AI era.
