By Hiroki Kato, CEO of Arches
South Korea has the capital. It has the technology. But is it moving fast enough in the global AI infrastructure race?
As demand for AI computing explodes, global data center investment is projected to reach $2.1 trillion by 2030—nearly ten times the 2023 levels, according to BCG.
Governments worldwide are moving quickly. Saudi Arabia is investing billions into AI infrastructure through Humain, a new state-backed firm supported by Nvidia and AMD. The U.S. has even eased export controls to accelerate the buildout.
In contrast, Korea is just beginning. Its first major move—a ₩7 trillion (~$5 billion) SK-AWS data center project in Ulsan—marks a step forward. SK Chairman Chey Tae-won called AI “crucial” to South Korea’s growth, with ambitions to scale the site into a global hub. He noted the project “sets a good example” for high-tech development beyond Seoul.
This isn’t just a tech trend. It’s a global shift. And investors who see data centers as just another cost may be missing the biggest opportunity of the AI era.
The AI Divide: Why Not Korea?
The world is undergoing a massive computing transformation.
Better models no longer hold back AI breakthroughs—they’re held back by infrastructure.
According to McKinsey, the global economy will need to invest over $5.2 trillion into data centers by 2030 to meet AI demand. This is not just cloud storage; it’s energy-intensive, GPU-packed hyperscale facilities that power the next generation of intelligence.
But supply isn’t keeping pace. Many companies remain cautious, held back by concerns around ROI, construction timelines, and regulatory hurdles. For example, in May 2025, Microsoft paused a $1 billion AI data center project in Ohio due to energy constraints and shifting demand.
Meanwhile, early movers are doubling down: U.S. tech giants like Google, Meta, and OpenAI are pouring $300 billion into AI infrastructure this year alone. Microsoft and G42 are expanding into Kenya, pursuing energy access and top technical talent.
Korea, despite its capital and hardware strength, is not yet part of this infrastructure-first wave.
In this era, computing is more than just technology; it’s a geopolitical lever.
How the World Is Jumping In
Around the world, governments and private players are moving fast. Yet over 150 countries still lack AI data center infrastructure. The gap is no longer just between tech giants and startups—it’s between nations.
Three forces are accelerating this fragmentation:
- Export controls are cutting off chip access, especially to China.
“Export controls are cutting off pathways to evade our restrictions,” said U.S. Commerce Secretary Gina Raimondo. - Grid delays are stalling hyperscale projects.
- Data sovereignty laws are forcing countries to localize AI infrastructure.
Together, these factors are turning computing into both a national asset and a geopolitical lever.
The message is clear: AI infrastructure isn’t optional. It’s a strategic moat and a sovereign asset.
What’s Next — and Where Korea Can Win
The opportunity is shifting toward next-generation compute infrastructure, especially in fast-moving and underbuilt regions.
Korea, with its capital and technical strength, is well-positioned to lead—if it can act faster.
Emerging opportunities that Korean investors should watch include:
- Sovereign data centers in Southeast Asia, the Middle East, and Africa, where governments are actively seeking trusted international partners.
- GPU leasing platforms like CoreWeave, which unlock on-demand compute in capital-light models.
- Edge AI infrastructure—low-latency, energy-optimized systems needed for real-time AI at scale.
- Infrastructure innovation: immersion cooling, modular batteries, and sovereign cloud logistics.
These segments are still early, but early stages are where outsized returns live.
To lead in the AI future, Korea must go beyond fabs and start placing strategic bets across the full stack of infrastructure.
South Korea's Blind Spot: Why Speed and Proximity Matter
South Korea recognizes the strategic importance of computing. The SK-AWS project in Ulsan, worth 7 trillion won, is proof of that. However, it also reveals a deeper pattern: most South Korean capital is tied up in traditional sectors such as semiconductors, export-oriented hardware, and domestic infrastructure.
Lee Hojun, CEO of Arches Korea, states, “South Korean investors are still focused on traditional strengths like semiconductors and hardware. However, the world is shifting toward sovereign data centers, GPU marketplaces, and edge AI infrastructure. If we don't act soon, others will set the rules before we even get to play the game.”
You can find the Korean version of this article here.
