Posco and GS Group signed a strategic memorandum of understanding in Seoul on 11 November to pursue AI data centre projects in South Korea and overseas, targeting a sector with $2.1 trillion in estimated construction and infrastructure investment from 2025 to 2030, according to McKinsey & Company estimates carried by Maeil Business Newspaper. Posco President Lee Hee-geun and GS Group Vice Chairman Hong Soon-ki attended the signing in the Gangnam district, The Korea Herald reported.
Key points
- The memorandum sets out a plan to begin with GS-led data centre projects in South Korea before pursuing work overseas.
- Posco plans to bring specialised steel into projects at the design stage, while GS E&C will lead construction and power supply.
- GS Caltex will handle liquid cooling. The companies plan a joint working group to develop execution and expansion plans.
Posco moves into data centre design
The agreement calls for Posco to bring its steel products into data centre projects during initial design, rather than joining at a later supply stage. The companies plan to apply Posco’s early vendor involvement programme to tailor materials to construction requirements, The Korea Herald reported. Their first proposed work is on major South Korean data centre projects led by GS Group.
Posco plans to offer corrosion-resistant PosMAC alloy plates, electromagnetic shielding steel and high-efficiency electrical steel. It says the materials are intended to improve durability and reduce construction time and maintenance costs. The company also plans to draw on its steelworks power-generation and heating, ventilation and air-conditioning expertise for data centre operations.
Posco established a Future Demand Development Office in July 2026 to coordinate its products for AI- and power-related industries, Maeil Business Newspaper reported. It subsequently formed separate project teams for AI data centre demand and energy storage system solutions, working with other Posco affiliates. The steelmaker’s existing range includes structural steel, sheets for server racks, stainless steel for cooling pipes and electrical steel for transformers.
GS E&C leads power and construction
GS Group is expected to oversee infrastructure development under the partnership. Its construction affiliate GS E&C will lead project planning, power supply, engineering and building work, while GS Caltex will take charge of liquid cooling, according to The Korea Herald. That division gives the two groups roles spanning the materials used in a facility and the systems needed to operate it.
GS E&C has worked on the Anyang Epoch Data Center and is developing a business model covering investment, development, construction and operations, Maeil Business Newspaper reported. GS Caltex has introduced a cooling fluid designed to carry heat away from servers. The companies plan to form a joint working group to develop execution plans for construction and expansion abroad.
The memorandum sets a direction for cooperation rather than reporting an order for a completed facility. Posco and GS Group plan to work first on GS-led projects in South Korea, then use Posco’s steel network and GS Global’s international channels to seek projects in North America and Asia.
McKinsey estimates $1.3 trillion for infrastructure
Of the estimated investment in AI data centres worldwide from 2025 to 2030, McKinsey & Company puts construction and development, including land and materials, at $800 billion. It estimates a further $1.3 trillion for infrastructure such as power generation, transmission and cooling, according to Maeil Business Newspaper. Those categories cover work assigned to both groups under the memorandum.
GS Global opened an office in Houston in August 2026, adding to its Los Angeles operation. The affiliate has been building connections among US engineering and construction contractors, steel processors and distributors as it expands its sales network.
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