Sacheon City Launches Full-Scale Aerospace-AI Convergence Industry Initiative... Transforming the Landscape of Future Industries

by Choi Sungkyung

Published 30 Mar.2026 15:14(KST)

Securing Global Competitiveness Through Completion of Data Center Construction and MRO Industrial Complex

Sacheon City in South Gyeongsang Province is establishing an advanced industrial ecosystem that combines aerospace and artificial intelligence (AI), positioning itself as a future hub for Korea's industries.

On March 30, the city announced that, following the completion of the aviation MRO (Maintenance, Repair, and Overhaul) industrial complex on March 18 and the rollout of the first KF-21 mass production unit on March 25, it has now completed the architectural committee review for the construction of an AI data center and is awaiting final building permits. This marks a full-scale effort to lay the foundation for an aerospace-AI convergence industry.

The National Aerospace Industrial Complex will feature a cluster that brings together administrative, R&D, corporate support, and talent development functions, centered around the planned headquarters of the Korea Aerospace Administration.

In addition, core infrastructure such as the Knowledge Industry Center, Satellite Development Innovation Center, and Startup Incubation Center are being expanded in stages, while related companies including Doowon Heavy Industries, Camp, and Leaderin Aviation are actively moving in.

Sichuan City, AI Data Center Rendering Photo

In particular, major aviation companies such as Korea Aerospace Industries (KAI) and Korea Aviation Engineering & Maintenance Service (KAEMS), as well as the Gyeongnam Provincial Police Agency Aviation Unit, will be located within the Sacheon Aviation MRO Industrial Complex, forming an industrial ecosystem that spans the entire aircraft development, production, and maintenance cycle.

This is expected to strengthen both civilian and military MRO capabilities and create high-value-added jobs, with the MRO industry at its core.

The 'Sacheon Sky City AI Data Center,' which is being developed alongside these initiatives, will have a total project budget of approximately 1.5 trillion won. The facility will be built on a site area of 49,682 square meters, with a building area of 27,896 square meters and a total floor area of 71,334 square meters. It will be located at 1121 Sadari, Chukdong-myeon, within the Sacheon IC Integrated Distribution Industrial Complex.

This project passed the 80MW power system impact assessment under the Special Act on Distributed Energy Activation in May 2025, securing stable power supply potential from the Ministry of Trade, Industry and Energy, and is now proceeding with subsequent administrative procedures such as building permits.

Tae Wang D&D will lead the project, with Hyundai Engineering & Construction participating as the builder under the PCS (Procurement Construction System) model. Strategic investors include the Local Revitalization Fund, National Growth Fund, LS ELECTRIC, and MSPs (Managed Service Providers).

Tae Wang G&D Co., Ltd. ranks 54th nationwide in construction capability (with 685 billion won in projects), and its largest shareholder is Tae Wang E&C.

Negotiations are underway with companies such as Hyundai Glovis, Megazone Cloud, Digital Edge, LG CNS, KT, and NHN to become users of the data center.

Currently, the main procedures related to the construction of the AI data center, including the traffic impact assessment, landscape committee review, and architectural committee review, have been completed. The project aims to obtain building permits by April 2025 and break ground in May 2025.

Looking ahead, Sacheon City intends to further accelerate corporate investment attraction and revitalize the local economy by building an industrial ecosystem where R&D, production, maintenance, and AI data processing are organically connected. The city also plans to continuously enhance the global competitiveness of Korea’s aerospace and AI industries.

A city official stated, "The AI data center is a key piece of infrastructure linking the aerospace cluster and the aviation MRO industrial complex. By integrating AI and big data into aerospace manufacturing and maintenance, we aim to establish a global supply chain and create high-value-added jobs, positioning Sacheon as the core city for future industries."