Korea Investment Securities will take part in an artificial intelligence data centre development project in Gunsan, North Jeolla Province, as a financial investor and lead financial manager.

Korea Investment Securities said on Aug. 26 it has set up a public-private cooperation framework for the AI data centre development project with Jeonbuk Special Self-Governing Province, Gunsan city and SGC Energy, among others.

Under the agreement, the parties decided to cooperate to build a 60-megawatt AI data centre in Gunsan and aim to start construction within this year. They also plan to expand the data centre infrastructure to the largest scale in the Honam region and cooperate in building an AI industry base in North Jeolla Province.

Korea Investment Securities will serve as a financial investor and lead financial manager in the project. It will invest directly in the project company dedicated to the venture and arrange project financing funding.

The data centre will be built in a modular format on land owned by SGC Energy. The company said the project has strengths in speed and stability because it is being pursued with tenants already secured.

Since 2021, Korea Investment Securities' cumulative arranged volume for data centre project financing totals about 2.9 trillion won, the company said, adding this is about 27 percent of the domestic data centre PF market.

Korea Investment Securities CEO Kim Seong-hwan (김성환) said the public and private sectors have come together to participate in the project to help develop South Korea's AI industry. He said the project will contribute to helping Jeonbuk Special Self-Governing Province and Gunsan become a city with top AI infrastructure.