[Edaily Reporter KIM YOON-JEONG ] Hana Securities assessed that GS Engineering & Construction Corp(006360)is expected to see an increase in data center orders as large-scale group-wide investment plans related to the government’s Artificial Intelligence Data Center (AIDC) mega-project take shape. The firm maintained its “Buy” rating and raised the target price by 15.6% from 45,000 won to 52,000 won.

On the 1st, Kim Seung-jun, an analyst at Hana Securities, stated, “Among the government’s three major mega-projects, the announcement included GS Holdings’ 2.4 gigawatt (GW) investment in AI data centers,” adding, “We rate the likelihood of orders for group affiliates—such as GS Engineering & Construction Corp. and Xi NC& Co., Ltd. (a subsidiary of GS Engineering & Construction Corp.—highly, given their experience in data centers.”
GS Holdings plans to build an AI data center with a total capacity of 2.4 GW in the Bukpyeong 2nd Industrial Complex in Donghae City—1.2 GW in Phase 1 by 2028 and 1.2 GW in Phase 2 by 2029. GS Holdings is moving forward with the project by establishing its subsidiary GS AI Infrastructure, among other measures. The company also expects synergies from the presence of a 1.2 GW coal-fired power plant (operating at approximately 30% capacity) in Donghae, operated by GS Donghae Power, a subsidiary of GS E&R.
Researcher Kim predicted that an increase in data center contracts would lead to earnings growth. “Currently, GS Engineering & Construction Corp. and its consolidated subsidiary, Zai NC& Co., Ltd., are working on a total of three data center projects (in Goyang, Paju, and Sejong), and we plan to proceed with two additional projects (in Ilsan and Busan) this year,” he said. “A total of 120 megawatts (MW) is scheduled for the second half of this year, and we expect to secure orders worth nearly 1 trillion won.” He added, “If the Donghae AI data center project is launched subsequently, we can expect orders totaling 1.2 GW and over 10 trillion won.”
The data center projects currently underway were secured at a scale of 9 to 10 billion won per MW, with a construction period of approximately two years. The Goyang data center, a 20-MW project secured for approximately 180 billion won, is scheduled to break ground in November 2024 and be completed in October 2026. The Paju data center, a 50-MW project secured for approximately 320 billion won, is currently underway with construction set to begin in April 2025 and be completed in June 2027.
Researcher Kim explained, “GS Engineering & Construction Corp. has built more than 10 data centers since the 2010s, including projects for LG Uplus, Hana Financial Group, and Naver (Chuncheon and Sejong),” adding, “Recently, the company has expanded into the areas of development and operation by investing directly in equity stakes.”
He continued, “Through the Donghae project, we can expect to secure data center contracts in the GW range,” and predicted, “Since orders worth over 10 trillion won could contribute to revenue within two to three years, the company’s overall revenue growth could accelerate significantly.”