State-owned companies, including land developer Korea Land & Housing Corp. and Korea Data Center Council, an organization that promotes the local data center industry, have signed an agreement to spend approximately 4 trillion won ($3.6 billion) to build a data center park powered by green energy sources.

According to the memorandum of understanding inked last Friday, LH and KDCC will collaborate with local power generator Korea Hydro & Nuclear Power to build the green energy-based data center complex that will be utilizing highly efficient energy technology and energy recycling systems. The partners will also jointly roll out support measures to grow the data and alternative energy sectors.

The planned data center park will consist of three clusters for data centers, renewable energy generation, and energy-related businesses.

In a bid to secure a competitive edge in the fast-growing global data center market, LH said it would try to attract investment by issuing public real estate investment trusts and advance the infrastructure of the data center complex down the road.

LH and KHNP will also work to run joint projects to install renewable energy systems in smart cities built by the government-owned company.

By Kim Young-won (wone0102@heraldcorp.com)