- The move follows the rapid expansion of infrastructure at Samsung SDS
- Samsung SDS appointed new CEO in November
- AI data center demands are skyrocketing
Samsung’s IT services division has announced plans to build an AI data center as the company looks to capitalize on the industry’s growing demand for AI computing.
Samsung SDS has purchased land and infrastructure at the Samsung Electronics plant site in Gumi, South Korea, for a fee believed to be around $15 million.
According to plans, the company will build the new site to complement its growing data center portfolio. The company currently operates 18 data centers worldwide, five of which are located in South Korea, including sites in Sangam, Gumi, Suwon, Dongtan and Chuncheon.
Samsung SDS’s move comes amid a period of intense demand for AI computing capabilities globally, with companies increasing adoption of the technology.
Western hyperscalers such as Microsoft, Amazon Web Services (AWS) and Google Cloud have committed to investing in infrastructure expansion.
Recent research from IDC predicts that rising AI workload requirements will drive a sharp increase in data center capacity over the next three years, with the industry projected to record a compound annual growth rate (CAGR). 40.5% by 2027.
Samsung SDS has been investing heavily in data center operations in recent years to meet this growing demand. The company offers a range of cloud-based infrastructure and managed services.
In the third quarter of 2024, the company reported a 35% increase in revenue from its cloud services segment alone, a significant increase over the previous year.
The company also recently revealed plans to launch its FabriX AI service as part of a deal with Microsoft Azure, noting in a statement at the time that the move would help expand its global user base.
Management shakeup shows focus on AI computing
Investment in infrastructure is not the only objective of Samsung SDS today. In November 2024, the company confirmed the appointment of Lee June-Hee as CEO.
June-Hee previously served as executive vice president of Samsung Electronics’ networking business and played a crucial role in driving the adoption of 5G networks for Samsung’s Galaxy series smartphones.
In her new role, June-Hee will lead the company’s ongoing AI strategy, with a specific focus on increasing infrastructure investment.
