Empyrion DC Raises Funds For Gangnam Data Center Building

The intended construction of Empyrion DC's Gangnam Data Center (GDC) has been financed by three South Korean financial institutions. KEB Hana Bank, Hana Capital Co Ltd, along with the National Credit Union Federation of Korea will provide the loan, which KEB Hana Bank and Hyundai Asset Management Co Ltd set up. The GDC will be the second data center announced by Empyrion in August 2022 and will be located in the Gangnam district of Seoul, South Korea. As per the press release, the 10-story facility will have a capacity of 29MW, despite being promoted as having 40MW on the company's website. The company has characterized the facility as a 'green' data center, using 'state of the art' cooling technologies alongside solar photovoltaics.

The loan is anticipated to cover the building's construction and installation of its mechanical, electrical, and sewage systems. Construction is scheduled to begin immediately following the financial closure, and the data center is anticipated to be operational by the beginning of the second quarter of 2025. In January 2023, Empyrion signed a construction, procurement, and engineering contract with Daewoo Engineering & Construction for a fixed lump sum. The following month, Empyrion signed a memorandum of understanding (MoU) with Sejong Telecom to host the national Internet backbone network at GDC.

Recent challenges have confronted the South Korean financial market, as a result of the liquidity crisis prompted by the selloff in the Korean bond market, which has made lenders more hesitant to deploy debt. Empyrion DC is a Singapore-based Seraya Partners portfolio company. Following the acquisition of Dodid Pte. Ltd. and its 12.5MW data center alongside YTL, the company has a data center presence in Singapore and South Korea. It intends to enter additional Asian markets, including Taiwan and Indonesia, in the near future.