South Korean shipbuilders race for floating data centers
· UPIJuly 8 (Asia Today) -- HD Hyundai and Samsung Heavy Industries are moving to secure early positions in the emerging market for floating data centers, a new type of offshore infrastructure drawing attention as artificial intelligence drives demand for computing power.
HD Hyundai has begun developing core technologies with a global partner, while Samsung Heavy is accelerating commercialization through classification approvals and cooperation with international companies.
Industry officials say the market is still in its early stages and the company that first proves both technological reliability and commercial feasibility could gain the lead.
Floating data centers use offshore floating structures to operate servers. They are drawing attention as a next-generation infrastructure option for handling the rapid increase in data processing demand tied to AI.
HD Korea Shipbuilding & Offshore Engineering, the shipbuilding arm of HD Hyundai, signed a memorandum of understanding Tuesday with Schneider Electric to jointly develop infrastructure technologies for floating data centers.
The two companies plan to develop core data center infrastructure and engineering technologies optimized for marine environments, with the goal of building data centers on offshore platforms.
HD Hyundai is emphasizing its groupwide business portfolio as a strength in the floating data center business. The company says it can offer integrated solutions by connecting the capabilities of group affiliates in power supply, engines, electrical equipment and small modular reactors.
Samsung Heavy Industries is seen as slightly ahead in commercialization.
In April, the company received international classification approval for the concept design of a 50-megawatt floating data center. It is working with Greek shipowner Capital Clean Energy Carriers, Lloyd's Register and U.S. AI server company Supermicro to pursue commercialization by 2028.
Samsung Heavy is also using its experience in designing and building floating liquefied natural gas production facilities for the development of floating data centers. Industry officials say its expertise in offshore structures and operations could help it gain a technological advantage.
South Korean shipbuilders are focusing on floating data centers as a future growth business because demand for data centers is rising sharply with the spread of AI. AI data centers require large amounts of electricity, but securing land and connecting to power grids have become increasingly difficult for land-based facilities.
Offshore data centers can use seawater for natural cooling and can be connected to floating power facilities or offshore wind power, making them a possible alternative for solving power and cooling constraints. The ability to use existing shipbuilding and offshore plant technologies is also seen as a factor that could benefit South Korean shipbuilders.
Market forecasts are also positive. According to the source article, citing BIS Research, the global floating data center market is expected to grow from $224.2 million in 2023 to $732.6 million in 2033, with a compound annual growth rate of 12.57%.
Global companies are also entering the market. Japanese shipping company Mitsui O.S.K. Lines is working with Kinetics, the energy transition arm of Turkey's Karpowership, to jointly develop a 20- to 73-megawatt floating data center platform.
Industry officials say companies that secure technical standards and viable business models first are likely to take the lead in the future market.
"HD Korea Shipbuilding & Offshore Engineering is accelerating the development of offshore data center technology based on its accumulated capabilities in the design and construction of floating structures in the shipbuilding and offshore sectors," said Kim Hyung-kwan, chief executive of HD Korea Shipbuilding & Offshore Engineering.
"Through this cooperation, we will advance the core technologies needed to reliably implement large-scale, high-density computing infrastructure at sea," Kim said.
-- Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260709010003180