Samsung SDS, the IT services arm of the South Korean tech behemoth, is setting its sights on a new frontier in technology: artificial intelligence. With plans to establish its first AI-focused data center, Samsung is poised to tap into the surging global demand for AI computing power, marking a significant milestone in its expansion strategy.
The new data center will be built in Gumi, South Korea, with Samsung investing approximately $15 million in land and infrastructure acquisition. This facility will augment Samsung SDS’s extensive network of 18 data centres worldwide, including five in South Korea. The location in Gumi, already an industrial hub, underscores the company’s intent to leverage strategic resources and bolster its infrastructure.
Samsung’s move to enhance its AI capabilities comes at a time when the demand for AI infrastructure is skyrocketing. Enterprises across industries are increasingly adopting AI technologies, driving the need for advanced computing power and data handling capacities. According to IDC, AI workloads are expected to grow at a compound annual growth rate (CAGR) of 40.5% through 2027, making the expansion of AI-focused facilities not just a strategic choice but a necessity.
This burgeoning market has already seen giants like Microsoft, Amazon Web Services, and Google Cloud ramp up their investments. By establishing an AI-focused data centre, Samsung SDS aims to position itself as a formidable competitor in this space, ready to capture a share of the rapidly expanding market.
Samsung SDS’s focus on AI aligns with its robust performance in cloud services. In Q3 2024, the company reported a 35% increase in revenue compared to the same quarter the previous year, driven by the growing adoption of its cloud offerings. Notably, the FabriX AI service, developed in collaboration with Microsoft Azure, highlights Samsung’s commitment to innovation and its ability to meet the evolving needs of businesses.
Looking ahead, Samsung’s strategic investments and commitment to innovation signal its ambition to generate $1 billion annually through cloud services.
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