Samsung SDS, the South Korean IT Service, which is the arm of Samsung is gearing up to set up its first AI data center at Gumi, South Korea.
With this move, the company is aiming to drive the wave of growing global demand for AI computing power. The company has already acquired land and infrastructure for approximately $15 million for the plan.
A recent study by IDC has predicted a massive increase in AI workloads, with data center capacities growing at a compound annual growth rate of 40.5% by the year 2027. Major tech giants like Microsoft, Amazon Web Services, and Google Cloud intend to develop their infrastructures.
As Samsung SDS has joined the race, the company is doubling down on its investments to remain competitive in this evolving landscape.
“AI service is driving innovation across various industries,” the company said in one of its recent research, adding “The adoption of AI is rapidly advancing, particularly in sectors like health care, finance, and manufacturing.”
In the third quarter of 2024, the company achieved impressive results from its cloud services division, which recorded a 35% revenue rise. Also, its partnership with Microsoft Azure to launch the FabriX AI service further highlights its commitment to expanding its footprint in the AI market.
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