Hyundai Motor Group commits $6.3 billion to build AI data center and robotics hub in South Korea

Hyundai Motor to Invest $6.3 Billion in AI, Robotics Center

Hyundai Motor Co. will invest 9 trillion won ($6.3 billion) to build an artificial intelligence data center, robot factory and hydrogen plant in South Korea, as the automaker accelerates its push into into new technologies. The largest part of the investment will be a 5.8 trillion won AI data center equipped with 50,000 GPUs to support autonomous vehicle development and robot learning, according to a statement from South Korea's land ministry on Friday. A further 1 trillion won has been allocated to open a water electrolysis facility capable of producing 80 tons of green hydrogen a day, while 1.3 trillion won will be spent on a solar plant to power the AI and hydrogen initiatives. The facilities will be built in the Saemangeum area, which is about 270 kilometers (168 miles) southwest of Seoul. The project also calls for launching Hyundai's first robot factory in South Korea, totaling 400 billion won, designed to mass produce wearable robots and other industrial and logistics models, and eventually to foster a robot parts cluster in the region. Hyundai signed an investment agreement with seven government agencies on Friday, after clinching a partnershipBloomberg Terminal in October with Nvidia Corp. to develop a national physical AI cluster using the chipmaker's Blackwell accelerators. The announcement comes as Hyundai ramps up investment in new growth fields, including AI, robotics and self-driving technology, amid mounting pressure on its core auto business from US tariffs, competition from Chinese automakers, and a slowing transition to electric vehicles in key markets like North America. The company's Boston Dynamics Inc. unit showcased the production-ready version of its Atlas humanoid robot at last month's CES, which will be made in the US. The large-scale investment also fits with with South Korean President Lee Jae Myung's call to create more jobs and boost regional economies away from Seoul and other major cities. The plan is expected create 71,000 new jobs and attract global partner companies and their talent, according to the land ministry. "The logistics and industrial robots to be mass-produced at this factory will be connected to the AI data center for constant learning," Lee said at a ceremony for the investment agreement. "This area will be reborn as a future city where everyone conveniently uses robots in their daily lives."

Hyundai Motor Group to invest $6.3 bln in AI data centre, robot factory in South Korea

SEOUL, Feb 27 (Reuters) - Hyundai Motor Group and South Korea on Friday signed a deal to invest about 9 trillion won ($6.26 billion) to build an AI data centre, a robot manufacturing factory and other developments in the country's western coastal region, the land ministry said. Here are some details * Hyundai Motor Group to invest about 5.8 trillion won to build an AI data centre, which will deploy 50,000 graphics processing units, the ministry said. * Group will spend 400 billion won on a factory to produce robots including wearable ones. * Group will invest 1 trillion won in hydrogen production facilites, another 1.3 trillion won in solar generation. * Saemangeum is a massive national land reclamation project that began more than 20 years ago on the country's west coast, partly to secure farmland and later to bring industrial clusters to a region that had long been considered a disadvantaged. * The Jeolla provinces where the area is located has been a traditional support base for the country's political liberals, including South Korean President Lee Jae Myung's Democratic Party. Reporting by Hyunjoo Jin and Jack Kim Editing by Ed Davies Our Standards: The Thomson Reuters Trust Principles., opens new tab

Hyundai Motor Group to invest $6.3 billion in AI data centre, robot factory in South Korea

Hyundai Motor Group to invest about 5.8 trillion won to build an AI data centre, which will deploy 50,000 ⁠graphics processing units, the ministry said. Hyundai Motor Group and South Korea on Friday signed a deal to invest about 9 trillion won ($6.26 billion) to build an AI data centre, a robot manufacturing factory ⁠and ⁠other developments in the country's western coastal region, the land ministry said. Here are some details: Hyundai Motor Group to invest about 5.8 trillion won to build an AI data centre, which will deploy 50,000 ⁠graphics processing units, the ministry said. The group will spend 400 billion won on ⁠a factory to produce robots including wearable ones. The group will invest 1 trillion won in hydrogen production facilites, another 1.3 trillion won in solar generation. Saemangeum is a massive national land reclamation project that began more than 20 years ago on the country's west coast, partly to secure farmland and later to bring industrial clusters to ⁠a region that had long been considered a disadvantaged. The Jeolla provinces where the area is located has been a traditional support base for the country's political liberals, including South Korean President Lee Jae Myung's Democratic Party.

Hyundai Motor to unveil multi-billion-dollar investment in South Korea, source says

Hyundai Motor Group is reportedly planning a multi-billion-dollar investment in South Korea's west coast, focusing on robotics, an AI data center, and hydrogen infrastructure. This move aligns with the group's broader strategy to expand into artificial intelligence for autonomous driving and robotics, building on previous commitments and recent deals with Nvidia. SEOUL: Hyundai Motor Group plans to unveil a multi-billion-dollar investment in South Korea's west coast, a source with direct knowledge of the matter said on Wednesday, as the auto group expands into artificial intelligence for autonomous driving and robotics. Shares in Hyundai Motor surged ⁠10.5% and affiliate ⁠Kia soared 15% on Wednesday, after media reports on the automakers' potential 10 trillion won ($7 billion) investments in the Saemangeum area over the next five years. A second source said the investment involves robotics, an AI data centre and hydrogen infrastructure. A Hyundai Motor spokesperson declined to comment. In November, Hyundai Motor Group ⁠said it will invest a total of 125.2 trillion won in South Korea from 2026 to 2030, after Seoul ⁠finalised a trade deal reducing U.S. tariffs on South Korean autos to 15% from 25%. At the time, its Executive Chair Euisun Chung pledged to pursue a "hydrogen, AI city" in the renewable-energy-rich coastal region. The region is a strong support base for South Korean President Lee Jae Myung, a liberal who has encouraged companies and government agencies to invest in areas outside Seoul. The investment plan comes after Hyundai Motor Group unveiled a deal in October to buy up ⁠to 50,000 AI chips from Nvidia and build an "AI factory" to accelerate development of in-vehicle AI, autonomous driving, smart factories and robotics. Hyundai Motor Group, which owns humanoid robotics company Boston Dynamics, also said in January that it aims to establish production capacity for 30,000 robot units annually by 2028. ($1 = 1,437.7800 won) (Reporting by Hyunjoo Jin, Additional reporting by Joyce Lee; Editing by Ed Davies, Jacqueline Wong and Muralikumar Anantharaman) (You can now subscribe to our Economic Times WhatsApp channel)

Hyundai Motor to invest $6.3 bil. for physical AI, robots in Saemangeum - The Korea Times

President Lee Jae Myung shakes hands with Hyundai Motor Group Executive Chair Chung Euisun, third from left, during an MOU signing ceremony in Gunsan, North Jeolla Province, Friday. The group will invest 9 trillion won into the Saemangeum coastal area of the province. Also pictures are Deputy Prime Minister Bae Kyung-hoon, left, and Minister of Land, Infrastructure and Transport Kim Yun-duk. Yonhap Hyundai Motor Group will invest 9 trillion won ($6.26 billion) in the Saemangeum area of North Jeolla Province to set up an artificial intelligence (AI) data center for a physical AI, robot and component manufacturing cluster, water electrolysis plant, solar power facility and hydrogen model city. Hyundai Motor Group announced this initiative on Friday during an MOU signing ceremony attended by President Lee Jae Myung, along with ministers and municipal leaders. Hyundai Motor Group Executive Chair Chung Euisun and other top executives of the group also joined the ceremony. "The next-generation industrial paradigm that will take shape in Saemangeum will become a pivotal turning point for the future of not only North Jeolla Province but also Korea," Hyundai Motor Group Vice Chair Chang Jae-hoon said while introducing the initiative. "Equipped with manufacturing expertise as well as capabilities in robotics, AI and hydrogen energy, Hyundai Motor Group is ready to build an advanced industrial ecosystem." Saemangeum is a massive reclaimed area in North Jeolla Province developed for multiple purposes, including industrial complexes, mixed-use development, tourism and agriculture. In recent months, local politicians have called for semiconductor companies to invest in its industrial zones, triggering debates over the feasibility of such investments. With Hyundai Motor's decision to invest 9 trillion won in a robotics and AI project, the region has secured that long-sought advanced industry investment. Lee stressed that the government will fully support the investment so that it can serve as a best-practice case for regional expansion. "One of the top priorities of this government is balanced regional development," Lee said. "I would like to thank Hyundai Motor Group for trusting the government and making bold decisions from a corporate perspective. ... If the group's innovation capabilities are combined with Saemangeum's abundant resources, I believe the area can become a land of opportunity that delivers optimal synergy." According to the initiative, Hyundai will earmark 5.8 trillion won for building an AI data center for robots, autonomous driving and other elements for physical AI. The center will be powered by 50,000 graphics processing units (GPUs) to process data required for vehicles, smart factories and other applications. The group said it will use its existing manufacturing data for AI training and establish a virtuous cycle in which the results are reapplied to its products. Hyundai Motor will invest 400 billion won to set up a robot and robot component manufacturing cluster in the area. It has yet to be decided which types of robots will be produced there, but the cluster will comprise a complete robot manufacturing plant, a foundry plant for contract robot production and a component cluster. The manufacturing facility is expected to adopt Hyundai Motor's robot-based smart logistics systems and will also take on contract manufacturing for small and medium-sized enterprises. The group also plans to invest 1 trillion won in a 200-megawatt water electrolysis plant to produce clean hydrogen, 1.3 trillion won in a gigawatt-scale solar power complex and 400 billion won to build an AI hydrogen city that integrates Hyundai Motor's AI, robotics and hydrogen energy technologies into a comprehensive industrial ecosystem. Construction of the AI data center, the solar power farm and the electrolysis plant will begin in 2027. The data center and solar power complex are scheduled for completion in 2029. The electrolysis plant will complete its first phase in 2029, with capacity to be expanded in stages thereafter. Construction of the robot manufacturing plant and parts cluster will begin in 2028 and is expected to be completed in 2029. Hyundai Motor Group expects the initiative will create approximately 16 trillion won of economic value and create 71,000 jobs in total. The investment marks a milestone for Hyundai Motor Group's transition from carmaker to a physical AI company. At CES 2026 last month, Hyundai Motor, with its robotics affiliate Boston Dynamics, demonstrated the industrial applicability of its Atlas humanoid robot and Hyundai Robotics LAB showcased other AI-powered robots, including MobED. "Market perception of Hyundai Motor is shifting from a traditional value stock to a physical AI-driven growth stock," KB Securities analyst Kang Seong-jin said. "This investment is significant in that it marks the beginning of concrete execution of its physical AI vision and is seen as a strategic move to preempt tariff risks." Robots developed by Boston Dynamics are not expected to be produced in Saemangeum. However, as Hyundai Robotics LAB is preparing a range of robots, including MobED, there is a possibility that some of those models could be manufactured there. "With our world-leading manufacturing and innovation capabilities, we will contribute to helping Korea take the lead in future industries," a Hyundai Motor Group official said.

Hyundai Motor to unveil multi-billion-dollar investment in South Korea

Image credit: Getty Images Hyundai Motor Group plans to unveil a multi-billion-dollar investment in South Korea's west coast, a source with direct knowledge of the matter said on Wednesday, as the auto group expands into artificial intelligence for autonomous driving and robotics. Shares in Hyundai Motor surged 10.5 per cent and affiliate Kia soared 15 per cent on Wednesday, after media reports on the automakers' potential ₩10trn ($7bn) investments in the Saemangeum area over the next five years. Read more-European car sales decline as Chinese brands gain A second source said the investment involves robotics, an AI data centre and hydrogen infrastructure. A Hyundai Motor spokesperson declined to comment. In November, Hyundai Motor Group said it will invest a total of ₩125.2trn in South Korea from 2026 to 2030, after Seoul finalised a trade deal reducing US tariffs on South Korean autos to 15 per cent from 25 per cent. At the time, its executive chair Euisun Chung pledged to pursue a "hydrogen, AI city" in the renewable-energy-rich coastal region. The region is a strong support base for South Korean President Lee Jae Myung, a liberal who has encouraged companies and government agencies to invest in areas outside Seoul. The investment plan comes after Hyundai Motor Group unveiled a deal in October to buy up to 50,000 AI chips from Nvidia and build an "AI factory" to accelerate development of in-vehicle AI, autonomous driving, smart factories and robotics. Hyundai Motor Group, which owns humanoid robotics company Boston Dynamics, also said in January that it aims to establish production capacity for 30,000 robot units annually by 2028.

Hyundai Motor Group to invest $6.3 billion in AI data centre, robot factory in South Korea

SEOUL, Feb 27 (Reuters) - Hyundai Motor Group and South Korea on Friday signed a deal to invest about 9 trillion won ($6.26 billion) to build an AI data centre, a robot manufacturing factory and other developments in the country's western coastal region, the land ministry said. Here are some details* Hyundai Motor Group to invest about 5.8 trillion won to build an AI data centre, which will deploy 50,000 graphics processing units, the ministry said. * Group will spend 400 billion won on a factory to produce robots including wearable ones.* Group will invest 1 trillion won in hydrogen production facilites, another 1.3 trillion won in solar generation. * Saemangeum is a massive national land reclamation project that began more than 20 years ago on the country's west coast, partly to secure farmland and later to bring industrial clusters to a region that had long been considered a disadvantaged. * The Jeolla provinces where the area is located has been a traditional support base for the country's political liberals, including South Korean President Lee Jae Myung's Democratic Party. (Reporting by Hyunjoo Jin and Jack Kim Editing by Ed Davies)