SK Eternix, Mastern to Develop South Korea's First Fuel Cell-Powered AI Data Center

SK Eternix is partnering with Mastern Investment Management, an alternative investment-focused asset manager, to develop South Korea's first hyperscale artificial intelligence data center powered by fuel cells. The two companies signed a memorandum of understanding on October 7 at Mastern Investment Management's headquarters in Seocho-gu, Seoul, and announced the agreement on October 8.

At the core of the agreement is an off-grid business model in which fuel cell power generation facilities are installed within the data center site to supply electricity directly, bypassing reliance on the external power grid. The approach is being presented as a solution to the mounting power supply challenges confronting AI data centers, which are increasingly constrained by grid interconnection timelines and capacity limitations in many regions.

The division of responsibilities between the two partners is clearly defined. SK Eternix will oversee the entire power supply chain, encompassing engineering, procurement, and construction of fuel cell power facilities, as well as establishing the power supply structure and handling ongoing operations and maintenance. Mastern Investment Management will lead business development, including site acquisition and permitting, development scale review and design, investment structuring and financing, and tenant recruitment.

The two companies plan to jointly pursue a structure in which electricity generated by fuel cells on the data center site is supplied through a power purchase agreement. Fuel cells offer the advantage of being installable on-site, significantly reducing time-to-power compared to traditional grid interconnection. This approach is regarded as a technical solution that enables data center development even in regions with poor power supply conditions.

SK Eternix already has a substantial track record in the fuel cell power generation sector. The company has commenced commercial operation of the Chungju and Daesowon Eco Park fuel cell power plants, which are the world's largest in a single region, and will now extend that operational expertise into the data center domain through this partnership. Mastern Investment Management has the distinction of being the first South Korean asset manager to pursue development of an urban data center in Yeongdeungpo. Given its specialized capabilities in data center development and investment structuring, market attention is focused on what synergies will emerge from combining its expertise with fuel cell technology.

Kim Hae-joong, CEO of SK Eternix, said, "With fuel cells gaining attention as an eco-friendly power source for data centers, we expect positive synergies from this MOU with Mastern Investment Management, which brings data center development and investment expertise. We will continue to collaborate to maximize each company's unique capabilities and present a new business model to the market." Park Hyung-seok, CEO of Mastern Investment Management, said, "Collaboration with SK Eternix, a leading renewable energy company, will be a meaningful opportunity to expand the possibilities of data center development. Based on the expertise of both companies, we will create new growth opportunities in the data center market."

Building on this MOU, the two companies plan to refine the business model and review its technical and economic feasibility. As South Korea's first fuel cell-linked hyperscale AI data center, the project is expected to draw significant attention from the data center industry once specific project scale and timelines are confirmed. As AI computing demand surges globally, data center power consumption is growing explosively, and securing power infrastructure is emerging as a core competitive advantage in the data center business. The off-grid power supply model using fuel cells is gaining attention as an alternative that can break free from the constraints of existing power grids. Given that this partnership represents the first business structure of its kind attempted in South Korea, there is keen interest in whether it can set a new benchmark for future data center development approaches.