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Data Center Boom Raises Value of Chuncheon Hydrothermal Energy


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[Anchor]

The hot topic in Gangwon State these days is AI data centers. Active efforts are underway to attract data centers, mainly along the east coast in cities like Donghae and Gangneung. Thanks to this trend, the value of the Chuncheon Hydrothermal Energy Cluster is also rising.

Park Myung-won from G1 Broadcasting reports.

[Reporter]

The site for the Chuncheon Hydrothermal Energy Convergence Cluster spans a business area of over 810,000 square meters.

The project has been pushed forward for several years with the goal of fostering new industries and driving regional development by attracting eco-friendly data centers that utilize the cold deep water of the Soyanggang Dam.

With the recent surge in demand for AI data centers, both major domestic conglomerates and multinational corporations are hoping to move into the site.

It is reported that seven companies, including SK, Shinsegae, Alibaba, and Blackstone, are currently in discussions with Chuncheon City.

Because the hydrothermal energy convergence cluster utilizes deep water from the Soyanggang Dam, it offers significant savings in data center cooling costs, making it a spotlighted location for data centers.

Chuncheon City is reviewing plans to change the method of allocating land to determine which companies will receive plots.

Currently, the supply relies on a lottery system, where companies are selected through a draw as long as they meet simple eligibility requirements.

This structure makes it impossible to more specifically verify business capabilities such as a company's financial status and long-term investment commitment.

Because of this, Chuncheon Mayor Yook Dong-han and lawmaker Huh Young met with Minister of Land, Infrastructure and Transport Kim Yoon-deok last week to propose changing the business method.

[Yook Dong-han / Mayor of Chuncheon : We are currently in discussions with the Ministry of Land, Infrastructure and Transport. When we sell the plots here, we have requested that they actively review a private contract system within the regulations held by the ministry so that we can sell them in bulk….]

[Huh Young / Member of the National Assembly : It is a structure where we are practically forced to rely on a lucky draw without evaluating various aspects such as the scale of the companies and the credibility of their investment funds.]

Believing that land must be allocated to high-quality enterprises to guarantee business sustainability and achieve the goal of revitalizing the local economy, Chuncheon City plans to continue consultations with the government to change the business method.

As leading domestic companies as well as multinational corporations show interest in the hydrothermal energy cluster, Chuncheon City also intends to use this as a stepping stone to accelerate the cultivation of the AI industry.

(Video Reported by Shin Hyun-gul, Shim Deok-heon / G1 Broadcasting, Design by Lee Min-seok / G1 Broadcasting) Park Myung-won, G1

※ Please note: This article was translated by AI and may contain errors.
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