Kakao to Build AI Digital Hub in Namyangju’s New Smart City with $440 Million Investment

Reporter Kim Jisun / approved : 2025-06-13 03:21:29
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[Alpha Biz= Kim Jisun] SEOUL, South Korea – June 12, 2025 — South Korean tech giant Kakao Corp. is set to build a large-scale AI Digital Hub in the newly developed Wangsuk district of Namyangju, Gyeonggi Province — one of South Korea’s third-generation smart city projects.



According to sources in the ICT industry, Kakao has finalized negotiations with Gyeonggi Provincial Government and the Korea Land and Housing Corporation (LH) to secure land for the project. The company plans to invest up to KRW 600 billion (approx. USD 440 million) to establish a hyperscale data center complex in the area.



Construction could begin as early as 2026, with operations targeted to commence by 2030.



This will be Kakao’s second hyperscale data center, following the Ansan facility that began operations in January 2024. The move follows the company’s widely publicized service outage in 2022 caused by a fire at its Pangyo data center, prompting Kakao to reinforce its infrastructure resilience and digital capacity.



The Namyangju project also marks the first major private-sector investment under the Lee Jae-myung administration, which pledged during the presidential campaign to designate Namyangju as a National Strategic High-Tech Industry Zone in the Gyeonggi region.



The AI Digital Hub is expected to serve as a key pillar for Kakao’s next-generation cloud, machine learning, and digital service platforms.

 

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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