The initiative aims to establish small-scale data centers utilizing domestically produced AI semiconductors in non-metropolitan regions. These facilities are intended to offer affordable AI computing services to small and medium-sized enterprises (SMEs) and medical institutions, while simultaneously generating demand for domestic semiconductor manufacturers.
A government official stated that the Ministry of Science and ICT is moving forward with a 27.3 billion won project focused on building micro data centers (MDCs). A key objective of the project is to create a proof-of-concept environment where domestic AI semiconductor companies can deploy and validate their products within the AI data center market, which is currently dominated by NVIDIA’s graphics processing units (GPUs).
MDCs are compact, standalone data centers housed in container units that integrate servers, storage, networking, cooling, power, and security systems. Their primary advantage lies in enabling ultra-low latency AI inference by being located close to end users, such as factories, hospitals, and local government facilities.
According to an analysis by Savills Korea, over 90% of commercial data centers in the country are currently concentrated in the metropolitan region, with more than 40 additional large-scale facilities projected to be established there by 2028.
This centralization has created challenges for domestic AI semiconductor firms such as Furiosa AI and Rebellions, which face difficulties in securing real-world deployment opportunities for their high-efficiency NPUs and ASICs. Despite advances in chip performance, Furiosa AI, for example, has developed a server inference NPU claimed to be over five times more power-efficient than NVIDIA GPUs, market adoption remains limited due to the dominance of CUDA-based AI frameworks and broader market uncertainties.
To address these constraints, the government is moving forward with the Micro Data Center (MDC) initiative led by the Ministry of Science and ICT. The project aims to develop MDCs equipped with domestic AI semiconductors and build an ecosystem that supports their practical application. From 2025 to 2029, participating companies will be tasked with creating platforms that can interconnect and scale multiple MDCs in a cloud-like architecture. Regions such as Daegu and Gwangju are currently under consideration as pilot sites for the initiative.
