South Korean Contractors Expand AI Data Center Capabilities

Major South Korean construction companies are stepping up their focus on the AI data center market, according to industry reporting, as they seek growth beyond the weakening profitability of residential construction.

Samsung C&T, Hyundai Engineering & Construction, GS Engineering & Construction and DL E&C are expanding technical capabilities and staffing for data center delivery. Their focus extends beyond conventional construction into cooling, energy efficiency and wider project integration.

The companies are seeking to move from one-off contractor roles toward a development-led model that can cover site selection, permitting, design and operations. For data center customers, this could broaden the pool of providers able to coordinate the interdependent requirements of power supply, heat rejection, cooling and facility delivery.

Samsung C&T has obtained a patent for an immersion cooling system for data centers, according to the source. The company has previously participated in the construction of more than 10 data center projects, including Hanam Data Center and the Samsung Electronics Supercomputer Center. The reported project count is not accompanied by a full project list or delivery dates.

Hyundai Engineering & Construction’s data center construction experience dates from 2004, beginning with the Financial Clearing Service Bundang Center, according to the source. Its cited delivery record also includes the NH·KB Integrated IT Center and Naver Data Center Gak Sejong.

For AI data center development, high electricity consumption and heat generation remain central engineering constraints. The contractors’ increased attention to advanced cooling and energy-efficiency systems indicates that engineering readiness—particularly around power and thermal management—could become a more significant competitive factor in South Korea’s AI data center market.

The report describes a strategic expansion of contractor activity rather than the award of new contracts or the launch of new facilities. No capacity, CAPEX, construction timetable or commissioning information for specific new projects was provided.