LG to invest additional $910M in 200MW data center near Seoul

South Korean conglomerate LG announced it will inject an additional 1.3 trillion won ($910 million) into a 200MW data center project in Paju, a city located approximately 19 miles (31km) north of Seoul, according to local media reports. The new commitment more than doubles the 615.6 billion won ($441.7 million) the company had previously earmarked for the project in May 2025.

The planned facility, spanning 73,710 sqm (793,410 sq ft), has been under development since May 2024, when LG first revealed its intention to acquire real estate, including land and buildings in Paju owned by its display affiliate LG Display. The conglomerate's telecommunications arm, LG U+, is leading the development of the campus, which is expected to be completed by 2027 and will eventually have the capacity to host more than 100,000 servers.

The additional investment underscores LG's strategic push to expand its digital infrastructure footprint amid surging demand for AI-driven computing power and cloud services in South Korea. As enterprises and public institutions accelerate their adoption of data-intensive technologies, the need for large-scale, high-capacity data centers has grown significantly, making this project a critical piece of LG's long-term growth plan.

LG U+, which operates ten data centers across South Korea, including four colocation facilities in Seoul and additional sites in Ayang, Daejeon, Jeonju, Gwangju, Daegu, and two in Busan—one of which serves the military—will leverage its operational expertise to manage the new Paju campus. The expansion is expected to strengthen the company's position in the competitive domestic data center market, where demand continues to outpace supply.

Industry analysts view the increased capital commitment as a signal of LG's confidence in the sustained growth of the regional data center market, driven by the proliferation of AI workloads and the ongoing digital transformation of Korean businesses. The Paju project, once fully operational, is poised to become one of the largest facilities of its kind in the country, further cementing LG's role as a key player in Asia's rapidly evolving data infrastructure landscape.