Hanwha Energy, a core affiliate of South Korea’s Hanwha Group, is making a substantial entry into the U.S. artificial intelligence (AI) data center market. The company plans to build a 200MW AI data center in Texas, leveraging its extensive experience in eco-friendly energy. With an estimated investment of around 2 trillion won ($1.48 billion), construction is set to begin next year.
Currently engaged in the power trading business and operating a 2GW solar power plant in Texas, Hanwha Energy intends to utilize its existing renewable energy infrastructure for the new data center. This aligns with global trends towards sustainable energy solutions.
The planned AI data center will support hundreds of thousands of servers, becoming a key asset for tech giants like Google, Apple, Meta, and Microsoft. These companies are in dire need of large-scale AI data centers to support their generative AI operations and are committed to the RE100 goal of 100% renewable energy usage.
Hanwha Energy aims to lease the data center to these U.S. tech giants, with expected revenue from rent and electricity fees potentially reaching 10 trillion won over 20 years. This venture could significantly enhance Hanwha Energy’s growth prospects and secure new growth engines for the company.
The construction project will involve setting up power systems, including transmission and distribution networks, and water supply. Once these systems are secured, construction is planned to commence next year.
Hanwha Group, one of South Korea’s largest conglomerates, has diverse business interests ranging from chemicals and aerospace to finance. Hanwha Energy, a subsidiary specializing in renewable energy, is expanding its global presence. This new venture into AI data centers represents a strategic response to the increasing demand for high computational facilities driven by AI advancements.
AI data centers are specialized facilities that support the high computational demands of AI applications, housing thousands of servers and requiring significant energy and cooling systems. The economic impact of building and operating these centers includes job creation, infrastructure development, and long-term revenue generation.
Big tech companies are increasingly seeking renewable energy sources to meet their sustainability goals and reduce carbon footprints. The RE100 initiative underscores the importance of eco-friendly solutions, making Hanwha Energy’s investment both timely and strategic.
