TLDRs;

Nvidia secures new AI chip deals with Samsung, Hyundai, and SK Group during CEO Jensen Huang’s South Korea visit.
SK Group plans a $4.9 billion AI data center powered by Nvidia GPUs to boost national AI capacity.
South Korea targets 200,000 high-performance GPUs by 2030 amid energy and cooling infrastructure challenges.
Nvidia’s pivot to South Korea marks a strategic shift away from China’s increasingly restrictive tech market.

Nvidia’s expansion into South Korea is accelerating as CEO Jensen Huang prepares to unveil a new series of AI chip supply deals with major South Korean conglomerates including Samsung Electronics, Hyundai Motor Group, and SK Group.

The announcement comes during Huang’s visit to the country this week, highlighting South Korea’s growing importance in Nvidia’s global strategy.

The partnerships are part of Nvidia’s effort to offset the fallout from China’s tightening restrictions on advanced AI chips. Once commanding an estimated 95% share of China’s AI accelerator market, Nvidia’s footprint there has been reduced to virtually zero after Beijing imposed export curbs and promoted domestic alternatives.

In response, Nvidia is turning to South Korea, a technological powerhouse with a robust semiconductor ecosystem and ambitious plans to become an AI hub by the end of the decade.

SK Group’s $4.9 Billion AI Data Center Project

Among the newly announced collaborations, SK Group, which includes SK Hynix, one of the world’s top memory chipmakers, is planning to deploy Nvidia’s cutting-edge GPUs in a 7 trillion won (US$4.9 billion) AI data center.

The massive project is expected to become a cornerstone of South Korea’s national AI infrastructure, providing the computing backbone for next-generation applications across industries.

Industry analysts say this partnership will benefit both companies where Nvidia gains access to a thriving market for AI infrastructure, while SK Group strengthens its competitive edge in memory and data processing technologies. The deal also positions SK Hynix to better compete in the global AI semiconductor supply chain, where demand for GPUs is expected to outpace supply for years to come.

South Korea’s Race to Secure 200,000 GPUs

As part of its broader national AI initiative, South Korea aims to secure 200,000 high-performance GPUs by 2030. This goal aligns with the country’s strategy to lead in AI computing and data center infrastructure.

However, the plan faces significant challenges,  including power constraints and cooling inefficiencies in existing facilities.

Current estimates suggest that South Korea’s data centers could reach 637 facilities by 2029, demanding nearly 49,400 megawatts of electricity, roughly the output of 30 nuclear power plants. To meet this challenge, domestic firms like LG and SK Innovation are investing heavily in next-generation liquid cooling and energy-efficient infrastructure, including immersion systems designed specifically for AI workloads.

Infrastructure, Energy, and AI

The growing wave of AI infrastructure projects in South Korea has also spurred innovation in energy management and smart-grid systems. Government initiatives are now pushing for Zero Energy Building certification for new data facilities, requiring them to generate as much energy as they consume each year.

Meanwhile, AI-powered grid management technologies are being deployed to stabilize power supply, enhance renewable integration, and improve demand forecasting. These technologies will be critical in supporting the country’s expanding fleet of energy-intensive AI data centers.

At the same time, vendors and infrastructure partners are eyeing opportunities in projects like the Jeollanam-do Province’s 3-gigawatt AI data center, which aims to break ground by 2025. Equipment providers for cooling systems, microgrids, and energy management are expected to compete for lucrative contracts, further reinforcing the country’s AI ecosystem.

Looking Ahead

For Nvidia, this South Korean expansion represents more than just a new market, it’s a strategic realignment. As the U.S.-China tech rivalry deepens, Nvidia is building resilience by deepening partnerships across Asia-Pacific allies.

The upcoming APEC CEO Summit in Gyeongju, which Huang will attend later this week, could serve as a platform to showcase the company’s role in shaping regional AI infrastructure.

While neither Nvidia nor its South Korean partners have publicly commented on the agreements, industry watchers expect the move to redefine the balance of power in the global semiconductor race. As South Korea accelerates its AI ambitions, Nvidia’s technology could become the critical gear that powers the country’s next generation of intelligent systems.