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SK ecoplant constructing the biggest commercial data center in South Korea
SK ecoplant has teamed up with Singapore’s Digital Edge, a newly formed data center company focused on high-growth markets across the Asia Pacific, to build the largest commercial data center in South Korea.
SK ecoplant’s partnership with the said data center company signals its official entrance into the commercial data center business. It is looking to develop and expand its expertise in data center development with the more than 1 trillion won or around $800.3 million investment with Digital Edge.
As per The Korea Economic Daily, SK ecoplant and the Singapore-based firm signed a joint venture agreement on April 22. They will be setting up and develop a data center in Incheon, South Korea.
Digital Edge reportedly entered the Korean market last year when it acquired the local Sejong Telecom Inc., a data center assets with bases in Seoul and Busan. The company purchased it for $120 million. Moreover, Digital Edge also has data centers in the Philippines, Japan, and Indonesia.
SK ecoplant was previously doing business under the brand name SK Engineering & Construction Co. The company’s name has been changed in line with its goal to be an eco-friendly firm and participate in the worldwide net-zero emissions campaign.
To build the commercial data center, SK ecoplant will be participating in all phases of its construction including procurement, engineering, and construction. In any case, under the deal, the SK Group’s construction arm and Digital Edge will build two buildings of data centers in Bupyeong National Industrial Complex in Incheon.
These buildings will have a capacity of 120 megawatts. The companies will start the construction of one of the two buildings soon and it is expected to be completed in 2024.
“Through this project, we have successfully entered the data center development business, will be expanded,” SK Ecoplant Ecospace BU’s chief executive officer, Song Young Gyu, said in a press release.
Samuel Lee, Digital Edge’s chief, further said, “With this project, SK Ecoplant’s business development know-how and Digital Edge’s operating experience will be combined to provide next-generation digital infrastructure services to the Korean market, one of the fastest-growing data center markets in the world. We will provide it.”