Daewoo Engineering & Construction has accelerated its strategic repositioning toward digital infrastructure as demand for AI-driven compute capacity continues to intensify across Asia. Consequently, large-scale data centers are now increasingly viewed as critical assets that, in turn, require integrated capabilities across power sourcing, engineering, financing and long-term operations. Accordingly, South Jeolla Province has therefore, emerged as a preferred location for hyperscale deployments, primarily because of its renewable energy capacity and infrastructure readiness.

Daewoo Engineering & Construction said on Friday it has signed a multiparty agreement to develop two large-scale artificial intelligence data centers in South Jeolla Province, accelerating its transition into a full-scale data center developer and operator.

The agreement positions the South Korean builder at the center of a consortium focused on hyperscale infrastructure tied to AI computing demand. The projects carry a combined power capacity of 500 megawatts, placing them among the largest announced regional developments of their kind.

The announcement underscores growing private-sector investment in AI-related infrastructure as governments and companies seek to secure power, land and operational expertise for next-generation computing facilities.

Consortium Framework and Project Scope

Daewoo E&C entered into a memorandum of understanding with the South Jeolla Provincial Government and 10 public and private partners. The partners include KT Corp.

Under the agreement, Daewoo E&C will serve as lead contractor for engineering, procurement and construction. The company will also coordinate development planning across the consortium, reflecting its stated ambition to move beyond traditional construction roles.

The consortium plans to construct two hyperscale AI data centers with individual capacities of 200 megawatts and 300 megawatts. The sites are located in Jangseong-gun and Gangjin-gun, both within South Jeolla Province.

Company officials cited regional advantages that support large-scale data center operations. South Jeolla Province ranks as a national leader in renewable energy output and offers access to stable green power supplies. Reliable water resources further support cooling and operational requirements, the company said.

The projects align with a broader push to link data infrastructure growth with renewable energy availability, a key constraint facing AI data center expansion globally.

Strategic Shift Beyond Residential Construction

The data center initiative forms part of Daewoo E&C’s broader strategy to diversify beyond housing and expand into non-residential infrastructure. The company is advancing a developer-operator model that integrates financing, project development and long-term operations.

That approach reflects shifting margins and demand patterns in South Korea’s construction sector, where residential development has faced cyclical pressure. Data centers, by contrast, offer long-duration assets with recurring operational revenue tied to digital and AI adoption.

Daewoo E&C has positioned the South Jeolla projects as a test case for scaling this model nationally. Executives have framed the effort as a foundation for future infrastructure investments linked to digital transformation.

Last month, the company broke ground on the Jangseong Pine Data Center, described as the province’s first data center project. The groundbreaking marked Daewoo E&C’s initial operational step into the sector within South Jeolla.

Speaking at that ceremony, Chair Jung Won-ju emphasized the strategic role of such facilities. “Data centers are core infrastructure in the AI era,” Jung said, adding that they “will play a central role in revitalizing regional economies and enhancing national competitiveness.”

Regional Development and National Positioning

The latest agreement extends that positioning by tying large-scale private investment to provincial development goals. South Jeolla Province officials have promoted the region as a hub for energy-intensive digital infrastructure supported by renewables.

A signing ceremony was held Friday in South Jeolla Province, attended by Gov. Kim Yeong-rok and representatives from consortium members. The provincial government has backed the initiative as part of a broader economic development agenda.

Daewoo E&C described the partnership as a milestone demonstrating its data infrastructure capabilities. The company said it plans to leverage both geographic and technical advantages to deliver the projects.

“We will leverage South Jeolla’s strategic location and Daewoo E&C’s technical expertise to complete a world-class data center that contributes to enhancing the nation’s AI competitiveness,” a company official said.

Industry analysts view projects such as the South Jeolla AI data centers as indicative of intensifying competition among construction and engineering firms to secure early positions in AI infrastructure markets. Power availability, land scale and execution capability remain key differentiators as demand accelerates.

For Daewoo E&C, the projects offer an opportunity to validate its developer-operator model while anchoring long-term growth in digital infrastructure tied to artificial intelligence adoption.