KT Cloud to Build 1GW AI Data Center Network Across South Korea by 2031

KT Cloud has unveiled a strategic roadmap to expand its AI Data Center (AIDC) infrastructure to a total capacity of over 1 gigawatt (GW) by 2031. The initiative marks a massive scaling of the company's physical footprint to meet the power-intensive demands of large-scale artificial intelligence.

Detailed during the 'kt cloud summit 2026' on September 15 at the Grand InterContinental Seoul Parnas, the plan involves establishing approximately 20 AI hubs across South Korea. To achieve this 1GW capacity, KT plans to invest 5 trillion KRW over the next five years. This investment is designed to secure the company's competitiveness in the AIDC market and facilitate its transition into an 'AX (AI Transformation) Platform Company.'

The Infrastructure Race

This expansion comes as global cloud and AI providers aggressively increase capital expenditure despite industry debates regarding potential over-investment. The primary driver is the critical need for power-intensive infrastructure; as AI models grow in complexity, the physical ability to provide stable, high-capacity power has become the primary limiting factor for scaling.

Why Power Capacity Matters

Securing 1GW of power capacity addresses a critical bottleneck in the AI supply chain. By distributing this capacity across 20 different hubs, KT Cloud aims to reduce latency for end-users and enterprises, ensuring that AI processing happens closer to the data source. This distributed network allows the company to position itself as a primary AX partner for Korean enterprises, leveraging its existing network backbone and operational expertise in data center management to provide a seamless transition to AI-driven operations.

The Path to AX Transformation

For KT, this is not merely a real estate play but a fundamental shift in business identity. CEO Park Yun-young emphasized that AIDC serves as the core infrastructure necessary for the company to leap forward as an AX Platform Company. By controlling the underlying power and compute layers, KT Cloud intends to move beyond simple cloud hosting to become the foundational layer for corporate AI adoption in the region.

What to Watch

As the five-year investment cycle begins, the industry will be watching how KT Cloud manages the land acquisition and power grid negotiations required to bring 20 sites online. While the 2031 target is clear, the speed of deployment will depend on regulatory approvals and the availability of high-voltage power allocations across the various South Korean provinces.