LG Uplus bets big on AI data centers with $3.26B target

LG Uplus has announced a strategic shift towards artificial intelligence infrastructure with the development of its new 200 MW Paju AI Data Center. The South Korean telecommunications provider intends to position this facility at the core of its data centre strategy to capture growing demand for inference-driven AI workloads. This move comes as part of a broader corporate ambition to generate significant revenue from AI-related services over the coming years.

The company is targeting a revenue goal of 4.4 trillion won, approximately 3.26 billion dollars, from its AI business by the year 2028. This objective represents a significant increase in the contribution of digital technologies to the operator's total turnover. By investing heavily in high-capacity infrastructure, the firm aims to support the intense computational requirements of modern large language models and real-time processing applications.

Construction of the Paju facility is intended to provide the scale necessary for high-density power requirements typically associated with generative AI technologies. LG Uplus is focusing specifically on the inference stage of AI, which involves the practical application of trained models to process new data and provide answers. The operator believes that focusing on this specific segment will provide a sustainable competitive advantage in the domestic enterprise market.

Beyond the physical infrastructure, the service provider is integrating its proprietary AI technologies into its core business operations. This includes the deployment of its ixi-GEN large language model, which is designed to enhance customer service and internal operational efficiency. The synergy between dedicated hardware and specialised software is expected to streamline the delivery of AI services to various vertical industries across South Korea.

The investment strategy also addresses the rising demand for energy-efficient cooling solutions within the data centre sector. As power density increases, LG Uplus is exploring advanced thermal management techniques to ensure the reliability and sustainability of its massive Paju site. Maintaining operational stability while reducing the carbon footprint of these energy-intensive facilities remains a key priority for the executive leadership team.

The shift toward AI-centric infrastructure reflects a wider trend among global telecommunications operators to diversify beyond traditional connectivity services. By evolving into a provider of digital intelligence, the company seeks to offset the stagnating growth observed in the traditional mobile and fixed-line markets. The Paju project is seen as a foundational element that will allow the firm to scale its cloud and platform offerings more effectively.

Looking ahead, the operator plans to complete the Paju data centre according to a phased development timeline that aligns with market demand projections. The facility will likely serve as a blueprint for future regional expansions as the company seeks to meet its ambitious 2028 financial targets. Continued integration of AI across the corporate portfolio is expected to drive long-term value for stakeholders and enterprise clients alike.