Daegu AI data center project effectively stalled; city seeks new partners

Daegu City is actively seeking new partners to realize its ambitious artificial intelligence (AI) data center project, estimated at 800 billion won (approximately $570 million USD). The initiative, initially planned for Suseong Alpha City, has hit a significant roadblock following the effective withdrawal of the SK Consortium.

The partnership, formed in 2023 with SK㈜ C&C, SK REIT Management Co., and Atorisearch Inc., aimed to construct a data center spanning 9,917 square meters with a total floor area of 29,700 square meters and a power capacity of 40 MW. However, the project has been effectively halted, with land sale contracts repeatedly postponed.

"We have contacted them multiple times to inquire about their commitment to the project, but we have not received a response for several months," stated a Daegu City official. "We have concluded that SK has effectively withdrawn from the consortium." The city is now in preliminary discussions with other interested companies to form a new consortium, signaling its continued determination to proceed with the data center development.

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We have contacted them multiple times to inquire about their commitment to the project, but we have not received a response for several months. We have concluded that SK has effectively withdrawn from the consortium.