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AI Data Center to be built in Busan with investment of KRW 1.8 tn, creating 7,570 jobs
On June 17, Busan-si announced that it signed a memorandum of understanding (MOU) with IGIS Asset Management to activate the artificial intelligence (AI) data center industry, with an investment of KRW 1.8 trillion.
Under this MOU, IGIS Asset Management will invest a total of KRW 1.8 trillion to build two large-scale AI data centers in the Myeongji-Noksan National Industrial Complex, creating approximately 300 jobs.
The additional economic impacts are estimated to include a production inducement effect of KRW 3.492 trillion, a value-added inducement effect of KRW 1.332 trillion, and an employment inducement effect of around 7,570 jobs. The city also expects an increase in local tax revenues, such as acquisition and registration taxes and local income taxes.
IGIS Asset Management has promised to prioritize the hiring of local talent for new positions required for data center operations and to provide business opportunities to local construction companies.
The administrative procedures, including design and construction approval, will be completed, with construction expected to begin in the second half of next year and operations to start in the second half of 2029.
Busan's mayor stated, "This large-scale investment will strengthen the foundation of the AI and digital industry ecosystem and create high-quality local job."
wink@yna.co.kr
Source Text
** This article was translated from Korean.
Date
2025.06.19
Views
17
According to Yonhap News,
On June 17, Busan-si announced that it signed a memorandum of understanding (MOU) with IGIS Asset Management to activate the artificial intelligence (AI) data center industry, with an investment of KRW 1.8 trillion.
Under this MOU, IGIS Asset Management will invest a total of KRW 1.8 trillion to build two large-scale AI data centers in the Myeongji-Noksan National Industrial Complex, creating approximately 300 jobs.
The additional economic impacts are estimated to include a production inducement effect of KRW 3.492 trillion, a value-added inducement effect of KRW 1.332 trillion, and an employment inducement effect of around 7,570 jobs. The city also expects an increase in local tax revenues, such as acquisition and registration taxes and local income taxes.
IGIS Asset Management has promised to prioritize the hiring of local talent for new positions required for data center operations and to provide business opportunities to local construction companies.
The administrative procedures, including design and construction approval, will be completed, with construction expected to begin in the second half of next year and operations to start in the second half of 2029.
Busan's mayor stated, "This large-scale investment will strengthen the foundation of the AI and digital industry ecosystem and create high-quality local job."
wink@yna.co.kr
Source Text
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Source: Yonhap News (June 17, 2024)
** This article was translated from Korean.