[Edaily Reporter Park Jung-Soo ] SungmoonElectronics(014910)is set to develop an Edge data center (IDC) with a total project cost of 200 billion won using its owned land. The company plans to expand its business scope from its existing manufacturing operations, which focus on deposition films, into the artificial intelligence (AI) infrastructure sector.
SungmoonElectronics announced on the 3rd that it is moving forward with a project to construct a 9.8 MW “Seongnam AI Platform Data Center (tentative name)” on company-owned land located in Sangdaewon-dong, Jungwon-gu, Seongnam-si, Gyeonggi-do.
To this end, the company has signed a memorandum of understanding (MOU) for “Edge IDC development” with Samwoo CM Architects & Engineers, a firm specializing in construction management (CM), and Samwoo DCD, a company specializing in data center development.
The project site is a factory lot of approximately 1,300 pyeong (4,397 square meters) owned by SungmoonElectronics within the Seongnam Hi-Tech Valley. The company plans to participate in the project through contributions of land in kind, among other means. Starting with the finalization of permits and the financing structure in the second half of this year, the company aims to break ground next year and begin operations in 2029.
Procedures to secure power are also underway. According to the company, it has submitted a preliminary application for power supply required for the data center construction and has received notification from KoreaElectricPower confirming that power supply is feasible.
SungmoonElectronics also views the project site’s location within the Seongnam Hi-Tech Valley industrial complex as a competitive advantage. Given that Seongnam City is promoting the development of a hub for physical AI demonstration and certification, the company’s strategy is to meet the data processing demand resulting from the future expansion of AI and high-tech industries.
An Edge IDC is a small-scale, distributed data center built close to where data is generated and consumed. Unlike large-scale, centralized data centers, it is constructed near urban centers or industrial sites to reduce data transmission latency and support real-time AI inference and traffic distribution.
SungmoonElectronics plans to use this project as an opportunity to expand its existing business portfolio—which has centered on deposition films—into the infrastructure sector, including AI data centers. The company intends to target markets where demand for real-time data processing is increasing due to the proliferation of generative AI, smart cities, autonomous driving, and industrial Internet of Things (IoT).
A representative from SungmoonElectronics stated, “With the proliferation of AI technology and rising demand for data processing, data centers are establishing themselves as core infrastructure for future industries,” adding, “We plan to develop our edge IDC business into a medium- to long-term growth engine by leveraging the competitive locations of our business sites.” The representative further noted, “Starting with this project, we will expand our business scope into the core AI infrastructure sector to enhance our corporate value.”