Naver, Nvidia launch gigawatt-scale AI factory plan

Naver and Nvidia will jointly develop a gigawatt-scale AI factory, launching operations at Naver’s hyperscale data center in Sejong, South Korea. The project, announced June 8, will initially deploy 55 megawatts of infrastructure in early 2027, scaling to 200 megawatts by 2028, with plans to expand globally. The partnership extends beyond technology, covering demand development, investment, and infrastructure construction. Naver will act as a core partner, sharing business risks and results. The collaboration leverages Nvidia’s DSX platform, which integrates chips, servers, and software to optimize AI model training and reduce costs. Naver plans to use the facility to serve AI needs in South Korea, Asia, the Middle East, and Europe. The companies will also enhance technical cooperation, including improving Naver’s HyperCLOVA X AI model with Nvidia’s Nemotron and developing a ‘Seoul world model’ by combining Nvidia’s Cosmos foundation model with Naver’s spatial data. The agreement follows a previous meeting between Naver Chairman Lee Hae-jin and Nvidia CEO Jensen Huang at last year’s APEC summit. Huang visited Naver’s 1784 headquarters in Seongnam, praising the company and engaging with employees during a Webtoon event. Naver aims to transition from an internet services provider to a global AI infrastructure leader. The partnership was highlighted at Nvidia’s GTC Taipei 2026, where Huang named Naver Cloud a key partner in the global AI ecosystem. Naver’s stock rose 9.2% on the news, reflecting investor optimism about the project’s potential.