Signing of Memorandum of Understanding for Investment Worth '3.6 Trillion Won' ... Busan City and Four Data Center Specialized Companies

10 AM on the 6th at City Hall, Signing of Memorandum of Understanding with Eco Delta City Resident Companies

3.6313 Trillion KRW Investment and 1,022 Jobs Including Green Data Center Construction and Operation

Busan City's investment attraction strategy based on selection and concentration has once again shone.

On the 6th at 10 a.m., the city will sign a 'Memorandum of Understanding (MOU) for Data Center Industry Development Investment' worth 3.6 trillion KRW with four tenant companies of the Eco Delta City Green Data Center cluster at the City Hall video conference room.

The four tenant companies are data center specialists: ▲Busan Eco Delta Green Data Center PFV ▲Empyrion DC Consortium ▲BEP & Mirae Asset Consortium ▲Ellis Group.

A 'data center' is an essential infrastructure for providing and using information (IT) services. Most information (IT) services such as artificial intelligence, cloud, Internet of Things, big data, and autonomous driving are provided through these centers. The Green Data Center is a facility that integrates eco-friendly technologies to reduce carbon emissions in data centers, which typically have low energy efficiency due to large-scale power consumption.

This MOU signing follows the city's final selection of tenant companies in September last year and the confirmation of their attraction through processes such as signing land sale contracts with Korea Water Resources Corporation, the project implementer of Eco Delta City.

Starting with the public announcement for the selection of priority buyers for industrial facility land (177,080㎡) in the data industry zone within Eco Delta City in July last year, the city held business briefings, received applications, conducted tenant company evaluation committee assessments, and selected tenant companies.

Currently, land contracts have been completed with ▲Busan Eco Delta Green Data Center PFV and ▲Ellis Group, and contracts with the remaining companies are expected to be finalized soon.

At the signing ceremony, Mayor Park, representatives of the four tenant companies, and the director of the Busan Information Industry Promotion Agency will attend and directly sign the MOU.

Upon signing this MOU, the four companies plan to invest a total of 3.6313 trillion KRW in building and operating the Green Data Center according to the investment plans submitted during the tenant company evaluation, creating 1,022 direct jobs.

The additional production inducement effect is expected to be 8.2982 trillion KRW, the value-added inducement effect 3.4552 trillion KRW, and the employment inducement effect 55,449 people. Along with this, local tax revenues such as acquisition tax, registration tax, and local income tax are also expected to increase.

In particular, the four companies have pledged to prioritize hiring local residents for new personnel required to operate the data centers and actively utilize local companies during the construction and equipment installation of the data centers, promising mutual cooperation to create jobs and revitalize the local economy through fostering the regional data industry.

These companies plan to complete administrative procedures such as design and building permits within this year and begin construction of the Green Data Center early next year, with full-scale operations expected to start in the second half of 2027.

This investment achievement is regarded as a successful outcome realized through the city's customized investment attraction strategy and active cooperation among related organizations (departments). The signing of the investment MOU worth 3.6313 trillion KRW is the largest single project investment attraction since Mayor Park took office.

Since forming the Eco Delta City (EDC) Corporate Attraction Council in 2021 and designating 177,080㎡ within Eco Delta City as a data industry zone, the city has actively engaged in investment attraction activities with related organizations (departments), including changing permitted building uses, lifting various regulations that hinder companies, and coordinating with central government ministries.

In particular, the Green Data Center construction will also achieve an eco-friendly transition of data centers, and it is expected to have an even greater impact on upstream and downstream industries such as eco-friendly construction, high-efficiency information technology (IT) equipment development, and renewable energy utilization.

Furthermore, Busan has abundant advantages as a location for data centers, and significant synergistic effects related to this are expected.

Ninety percent of submarine optical cables connecting overseas networks pass through Busan, facilitating global service provision, and stable power supply is available from the Kori Nuclear Power Plant.

It is also easy to utilize specialized talent produced annually by 22 local universities.

Additionally, the city will launch and operate a Green Data Center (DC) council to continuously listen to and resolve difficulties faced by tenant companies, such as electricity reception, to ensure smooth construction of the data centers.

After signing the MOU, the first meeting of the council will be held in the 26th-floor conference room of City Hall, attended by related organizations including the city, Waterworks Headquarters, Gangseo District, Korea Water Resources Corporation, Korea Electric Power Corporation, Busan Urban Gas, and tenant company representatives.

Mayor Park Hyung-jun said, “We have attracted four optimal companies to establish and operate Green Data Centers that apply nature-friendly designs harmonizing with the surrounding landscape and excellent technology, rather than conventional factory-type data centers, which will have significant economic ripple effects such as job creation in the local industry.” He added, “With these companies investing about 3.6 trillion KRW to build and operate the Green Data Centers, it has become possible to attract various upstream and downstream companies related to artificial intelligence, semiconductors, cooling devices, and server equipment. We expect this to realize digital innovation across the regional industry and the creation of a data center industry ecosystem.”

Aerial view of Busan Eco Delta City. [Image source=Asia Economy DB]

This content was produced with the assistance of AI translation services.