Naver secures $9 billion from Brookfield and Nvidia for AI infrastructure

The infrastructure agreement

South Korean cloud provider Naver has reached a significant milestone in its plan to build large-scale computing resources. The company announced a $9 billion agreement with the investment firm Brookfield to secure the necessary infrastructure for its AI ambitions. This move marks a transition from theoretical planning into the full-scale execution phase of a joint venture.

Under the terms of this deal, Brookfield will create a special purpose vehicle, which is tentatively named Asset Co. This entity is tasked with investing up to $9 billion to acquire essential components like GPUs and data centers. Once these assets are secured, the company will provide the resulting computing power directly to Naver Cloud.

The agreement also serves as a critical milestone for other partners involved in the project. Naver stated that this deal fulfills a precondition for a strategic equity investment from Nvidia. This three-way partnership between Naver, Brookfield, and Nvidia is designed to build a 1GW-scale global AI factory business.

Timeline and scaling goals

The project is structured to grow in distinct phases over the next several years. The first milestone involves a 55MW capacity, which is scheduled to go live during the first half of 2027. This initial phase will utilize Nvidia hardware that Naver first planned to deploy in South Korea back in June.

Following the 2027 launch, the companies intend to scale the capacity to 200MW by the year 2028. This expansion will build upon the initial plans to scale the Korean company’s multi-tenant DSX AI Factory. The growth strategy ensures that the infrastructure can handle increasing demands for AI processing power as the technology matures.

While the immediate focus is on domestic growth, the long-term vision is much broader. The capacity will be centered around the GAK Sejong data center, but the partners plan to expand into overseas markets in phases. This phased approach allows the companies to manage the high costs and logistical complexities of building global data centers.

The Sejong data center hub

The GAK Sejong site serves as the primary anchor for this new computing infrastructure. Construction on this site began in November 2023 and is currently moving through its various stages. The facility is designed to be a massive hub for hosting the servers required to run Naver's cloud services.

The site spans 290,000 square meters, which is roughly equivalent to 3.1 million square feet. It is planned to reach a total capacity of 270MW, which is enough to host up to 600,000 servers. Work on the second and third phases of this specific site is already ongoing to meet these targets.

By concentrating the initial 55MW and the subsequent 200MW of capacity in this location, Naver can centralize its operations. This allows for more efficient management of the hardware and power requirements. The site will be a cornerstone of the company's strategy to provide high-performance cloud services to its growing user base.

Global expansion strategy

Naver is not limiting its growth to the South Korean market. The company currently operates six cloud regions in South Korea and has established a presence in Japan, Germany, Singapore, and the United States on the West Coast. These existing regions provide a foundation for its international cloud services.

Looking forward, Naver has announced plans to establish new regions in several key locations. These include the East Coast of the United States, as well as Vietnam, Taiwan, and Thailand. The company is also actively looking to expand its footprint into the Middle East and North Africa regions.

The investment from Brookfield and Nvidia provides the capital and hardware necessary to support this aggressive international roadmap. By securing the ability to deploy 1GW-scale AI factories, Naver positions itself to compete with global cloud providers. The goal is to provide consistent, high-performance AI infrastructure to customers across multiple continents.