Nvidia Invests $1 Billion in Naver for AI Data Center Expansion

Singapore, Singapore Jul 25, 2026 ALN: [SEOUL] Nvidia will invest US$1 billion in Naver to help finance an artificial intelligence data centre under construction in South Korea, adding to a frenzy of deals by the world’s most valuable company. This investment is part of Nvidia's broader strategy to expand its footprint in the rapidly growing AI sector and to solidify partnerships with key players in the tech industry.

The funding will allow Naver, an internet and cloud service provider, to more than triple the size of the facility, Nvidia said late Friday. The site – developed jointly with US private equity firm Brookfield – will use Nvidia’s AI computing hardware. Naver, which has been a significant player in the South Korean internet landscape, is positioning itself to leverage AI technologies to enhance its cloud services and provide more advanced solutions to its users.

The AI data centre is expected to play a crucial role in providing the computational power necessary for machine learning, big data analytics, and a range of AI applications that are increasingly in demand across various industries. As businesses and governments strive to harness the potential of AI, the need for robust infrastructure to support these technologies becomes paramount.

In a parallel initiative, Nvidia is teaming up with SK Group to build more than 2 gigawatts of AI data centres on the Korean Peninsula. This substantial energy capacity is roughly the amount needed to power 1.5 million homes, underscoring the scale of the investment and the anticipated demand for AI services. The first of these so-called AI factories, built by SK Telecom, is set to open next year, marking a significant milestone in the collaboration between Nvidia and SK Group.

“This is the golden ages for Korea,” Nvidia CEO Jensen Huang said in an interview with Bloomberg Television. “Their semiconductor business is booming. Their industrial business is booming. You know, this is a country that has the ability to help the world build out the AI infrastructure.” Huang's remarks reflect a broader recognition of South Korea's strategic position in the global tech ecosystem, particularly in the semiconductor sector, which is integral to AI development.

Huang has funneled billions of dollars of investments into companies in every part of the AI supply chain. His aim is to accelerate the uptake of Nvidia's products and eliminate roadblocks that threaten to slow the adoption of AI technologies. This approach not only enhances Nvidia's market presence but also fosters innovation within the AI sector by enabling companies to access cutting-edge technologies.

The latest announcements, which build on existing partnerships with Naver and SK Group, coincide with a visit by South Korean President Lee Jae Myung to the US. President Lee is attending events in Silicon Valley, where discussions about additional tech deals are ongoing. This visit underscores the growing collaboration between South Korea and the United States in technology and innovation, particularly in the field of AI.

For Nvidia, closer ties with SK Group will help improve its access to computer memory chips. SK Group’s SK Hynix business and South Korean rival Samsung Electronics are the two biggest providers of the crucial components. The global demand for these chips has surged due to the rapid expansion of AI data centres, leading to supply shortages. By strengthening its relationship with SK Group, Nvidia aims to secure a more reliable supply chain for these essential components.

Nvidia will help Hynix design future high-bandwidth memory chips, an effort that will help guarantee access to supply, the US company said. This collaboration is critical, as high-bandwidth memory is essential for the performance of AI applications, enabling faster data processing and improved efficiency. In total, the “AI initiative” with SK Group will be worth more than US$500 billion, Nvidia stated, which includes expenditures on memory chips and purchases of Nvidia’s supercomputers.

Huang emphasized the scale of this initiative, saying, “So between us, we’re going to do half a trillion dollars’ worth of business.” This figure highlights the significant economic impact of the partnership and the potential for job creation and technological advancement in the region.

For the Naver project, Brookfield has agreed to a non-binding term sheet to fund up to US$9 billion. This investment is indicative of the confidence that major investment firms have in the growth potential of AI technologies and the infrastructure needed to support them. It also reflects a broader trend of investment in AI-related projects, as companies and governments recognize the transformative potential of these technologies.

Huang has argued that investments in companies such as Anthropic and OpenAI will help not only his business but also provide a return on investment. However, critics have expressed concern that such moves represent an artificial inflation of demand, describing them as circular deals. This debate highlights the complexities of the rapidly evolving AI market and the challenges that companies face as they navigate the landscape.

Earlier this week, Nvidia signed a US$1.5 billion agreement with Amkor Technology to bolster that company’s chip packaging facilities. This move is part of Nvidia's broader strategy to enhance its supply chain capabilities and ensure that it can meet the growing demand for its products. Additionally, Nvidia is coming off a recent trip to Japan that included agreements with robotics providers and Toyota Motor, further expanding its influence in the technology sector.

Huang is currently pushing for greater investment in AI hardware outside of his key group of large customers, the so-called hyperscalers. His vision includes encouraging countries to create their own “sovereign” capabilities, preserving control over their own data and ensuring that AI capacity is accessible to smaller companies and organizations. This perspective underscores the importance of democratizing access to AI technologies, allowing a broader range of players to participate in the AI revolution.

As the landscape for AI continues to evolve, the partnerships and investments being made by companies like Nvidia and Naver will likely have far-reaching implications for the technology sector, the economy, and society as a whole. The focus on building robust AI infrastructure not only supports the growth of AI applications but also raises questions about data governance, ethical considerations, and the future of work in an increasingly automated world.