Singapore's SC Capital Partners Group has invested in a data center project in South Korea.

Set to offer 40MW of gross power capacity, the data center will be located in Pohang and is being developed in partnership with neocloud startup NeoAI Cloud.

SC Capital Partners has not disclosed how much it has invested in the project.

The data center project has also secured investment from government-backed capital.

According to the companies, thus far the data center has received power approval, building permits, and construction has begun on the site. It is currently targeting completion by the end of 2027, and will be designed to support AI workloads, including liquid-cooled infrastructure ready for Nvidia Vera Rubin systems.

The first phase will span 100,000 sqm (1 million sq ft). As of July of this year, around 2 trillion won ($1.35 billion) had been invested in the project.

The site will be NeoAI's first data center, and the company will initially offer colocation services from the site.

Jonathan Yongwan Jo, CEO of NeoAI Cloud, said: “We are pleased to secure this investment from SC Capital Partners, a leading investment firm in Asia Pacific real estate and digital infrastructure. The Pohang AI data center is envisioned to go beyond traditional colocation by leveraging high-density infrastructure space integrated with GPUaaS (GPU-as-a-Service) and AI platform capabilities to provide a high-performance foundation for global enterprises to develop AI models and operate services. Building on the successful delivery of this initial 40MW phase, we plan to advance a second phase expansion of 260MW and look forward to a continued partnership with SC Capital Partners.”

Suchad Chiaranussati, chairman and founder of SC Capital Partners, added: “We are excited to complete this investment, which represents our continued expansion into digital infrastructure in Asia Pacific. The development benefits from strong underlying fundamentals and is well positioned to serve the evolving requirements of the digital economy. We remain focused on identifying high-quality opportunities, particularly in South Korea, where strong policy support for AI and digital infrastructure is contributing to a favorable environment for the sector, and working with experienced local partners to deliver investments that create long-term value for our investors.”

Singaporean real estate investment firm SC Capital Partners has a data center company of its own called Zeus, which it launched in 2023 as a joint venture with Abner Investments. In August of this year, the company signed a Memorandum of Understanding (MoU) with SB Telecom Singapore – a subsidiary of SoftBank - and Malaysian IT consultant Robust HPC to build data centers in Southeast Asia.

Pohang is a city on South Korea’s southeastern coast located in Gyeongsang Province. It is not a major data center hub.