Digital Edge’s SEL2 facility in Incheon (Image: Digital Edge)
Singapore-based data centre developer and operator Digital Edge has expanded its Korean footprint with the opening of a 36 megawatt facility in Incheon.
Developed with local builder SK Ecoplant, Digital Edge’s SEL2 facility is the first phase of a 100-plus MW campus the company is developing in the Seoul area, which is set to be one of the largest commercial data centre projects in South Korea upon completion, according to the company. Construction is expected to commence on the second phase of the $1 billion development in 2025.
Digital Edge, which is backed by US-based infrastructure private equity firm Stonepeak, pointed to the availability of SEL2 as providing digital infrastructure to help support growing adoption of cloud and AI in Korea. An anchor tenant for the facility has already been secured, the company said, without providing further details.
“We are proud to partner with SK Ecoplant in the development of SEL2 to bring next generation digital infrastructure to Asia Pacific, and support the rapid rise of cloud and AI applications across South Korea,” Digital Edge CEO Samuel Lee said in a release on Wednesday. “Seoul remains a key market within the region’s data centre landscape and we are delighted to be able to continue to support the acceleration of its fast growing digital economy.”
AI Ready Facility
Located in Incheon’s Bupyeong district, Digital Edge describes SEL2 as AI ready with a cabinet density of up to 130kw when liquid cooling solution is used to enable it to accommodate high power density applications. The facility is also designed to minimise water and energy usage and has achieved an annualised design power usage effectiveness (PUE) of 1.25, which compares to the global industry average of 1.55, according to the company.
Samuel Lee, Chief Executive Officer of Digital Edge
“SEL2 further strengthens our presence across the market by bringing large scale, high-power density data centre capacity to complement our existing connectivity-focused sites in Seoul and Busan,” said Andrew Pak, country manager for Digital Edge in South Korea. “Crucially, by working alongside our partners at SK Ecoplant who share our ESG commitments, we have been able to build a highly energy efficient facility that meets the performance demands of our customers alongside our environmental objectives.”
Digital Edge had announced the project in 2022, estimating at the time that it would cost a total of KRW 1 trillion ($1 billion). SEL2 was financed in part with a KRW 440 billion ($335 million), 5-year green loan consisting of fixed and floating rate tranches.
The launch of SEL2 gives Digital Edge its third operational facility in Korea, with the company having acquired a pair of assets in Seoul and Busan from local telecom provider Sejong Telecom in 2021.
South Korea ranked as the sixth largest data centre market in Asia Pacific by operational capacity with 649MW of capacity as of 30 June, behind China, Japan, India, Australia, and Singapore, according to a September report by Cushman & Wakefield. Including capacity under development and planning, Korea had 1.73GW of capacity at the end of June.
In August, Australia’s Macquarie Asset Management agreed to acquire the 40MW Hanam Data Centre near Seoul for $530 million from Korean investment firm IGIS Asset Management.
Regional Buildout
Digital Edge has 500MW of capacity across 17 data centre assets in India, Indonesia, Japan, Korea, China and the Philippines.
In February, the company announced the availability of EDGE2, its second data centre in downtown Jakarta, after commencing construction on the 23MW facility in 2022. The server shed is operated by a unit of Indonet, with Digital Edge having upped its majority stake in the Indonesian data centre operator in December after having acquired a controlling interest in 2021.
Last June, Digital Edge began construction of its seventh Tokyo-area data centre as part of a joint venture with Japanese developer Hulic.
That project came after the company in January last year announced its entry into India via a joint venture with Singapore-based AGP Sustainable Real Assets and a state-backed investor with plans for development of a portfolio of hyperscale facilities in the country.
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