Key facts
- Nvidia will invest $1 billion in Naver by acquiring newly issued shares.
- The investment aims to build a new AI data center in South Korea.
- Naver's facility is planned to expand to 200 megawatts.
- Brookfield is considering funding up to $9 billion for the project.
- Nvidia also formed a commercial partnership with SK Group valued at over $500 billion.
Nvidia is investing $1 billion in South Korean internet company Naver by acquiring newly issued shares to help finance the construction of an AI data center. This investment is part of a broader partnership aimed at building out AI infrastructure in South Korea.
Naver stated that its Gak Sejong data center will be the initial site for the Nvidia DSX partnership, beginning with 55 megawatts of AI infrastructure in the first half of 2027. The company has a roadmap to expand this capacity to 100 megawatts by the end of 2027 and reach 200 megawatts in 2028, with long-term plans for gigawatt-scale operations. US private equity firm Brookfield has agreed to a nonbinding term sheet to potentially fund up to $9 billion for the project.
In parallel, Nvidia has announced a long-term commercial partnership with SK Group, valued at over $500 billion. This includes Nvidia's purchases of high-bandwidth memory chips from SK Hynix, a leading supplier, and SK Group's acquisition of Nvidia's supercomputers. SK Telecom, another SK Group affiliate, plans to construct more than 2 gigawatts of AI data centers on the Korean Peninsula, with the first facility expected to launch in 2027.
Nvidia CEO Jensen Huang described South Korea as being in a "golden age" for investment due to its strong semiconductor and industrial sectors. The partnerships also aim to secure SK Hynix's advanced memory chip production for Nvidia's AI infrastructure, addressing a component currently in high demand globally.