On Friday, February 27th, Hyundai Motor announced a 9 trillion won (approximately $6.3 billion) investment to construct an AI data center equipped with 50,000 GPUs, a robotics factory, and green hydrogen facilities in South Korea. This initiative is designed to accelerate the development of autonomous driving and robotics technologies. The project is anticipated to generate 71,000 new jobs and contributed to the benchmark Korea Composite Stock Price Index recovering from an intraday decline of 2.4%.
This substantial investment plan is expected to be completed by the end of 2029. The move represents a core step in Hyundai's strategy to advance autonomous driving and robotics, as well as a crucial measure to address multiple pressures in the global automotive market and seek new growth engines. The capital market responded positively to this strategic shift. Buoyed by a continued rise in Hyundai's share price, the Korea Composite Stock Price Index successfully turned positive during the trading session, fully erasing an early loss of 2.4%, indicating investor approval of the plan. At the investment agreement signing ceremony on Friday, South Korean President Yoon Suk Yeol expressed high hopes for the project. He stated that the region would be developed into a future city where robots are easily accessible to everyone, and that the plan would also significantly boost regional economic and employment development. **Heavy Investment in AI and Robotics Infrastructure** The core of Hyundai's investment lies in building extensive AI computing power and robotics manufacturing capability. According to a statement released by the Ministry of Land, Infrastructure and Transport, the largest portion of funds will be directed toward the AI data center. Hyundai plans to invest 5.8 trillion won to equip the data center with 50,000 GPUs to fully support the development of autonomous vehicles and deep learning for robots. Concurrently, the company will invest 400 billion won to build its first robotics factory in South Korea. This facility aims to mass-produce wearable robots along with other industrial and logistics models, and will focus on cultivating a complete robotics component industrial cluster in the region. President Yoon emphasized that the logistics and industrial robots mass-produced at this factory will be directly connected to the AI data center, enabling continuous machine learning. Both of these core facilities are scheduled for completion by the end of 2029. **Supporting New Energy and Deepening Tech Collaborations** To ensure the operation of these large-scale technological facilities, Hyundai has also made significant arrangements for supporting new energy. The plan allocates 1 trillion won for the construction of a hydro-powered electrolysis facility capable of producing 80 tons of green hydrogen per day. A further 1.3 trillion won is earmarked specifically for building a solar power plant to directly supply electricity for the AI and hydrogen projects. All these facilities will be located in the Saemangeum area, approximately 270 kilometers southwest of Seoul. Regarding its technology ecosystem, Hyundai is continuing to deepen collaborations with leading global tech companies. The company partnered with NVIDIA last October to develop a national-scale physical AI cluster using the chipmaker's Blackwell accelerators. Furthermore, Hyundai's Boston Dynamics recently showcased a production-ready version of its Atlas humanoid robot at CES; this robot will be manufactured in the United States. **Navigating Industry Headwinds and Boosting Local Economy** Hyundai's aggressive cross-sector investment comes as its core automotive business faces increasingly severe external challenges. The company is currently under pressure from potential US tariff policies, intense competition from Chinese automakers, and a slowdown in the transition to electric vehicles in key markets like North America. Increasing its focus on new growth areas such as AI, robotics, and autonomous driving is a key strategy to overcome these challenges. This massive investment not only aligns with the company's strategic needs but also closely matches the South Korean government's economic vision. The project responds to President Yoon's call for creating more jobs and decentralizing the regional economic focus away from major cities like Seoul. The Ministry of Land, Infrastructure and Transport estimates the plan will create 71,000 new jobs and is expected to attract global partner companies and their top talent to the region.
Comments