Shinsegae Group has signed an agreement with Reflection AI in San Francisco to build what is expected to be the largest AI data center in Korea. The facility will have a power capacity of 250 megawatts.
Both companies plan to create a joint venture by the end of this year to develop and manage the project together.
This partnership between the Korean retail company and the US tech firm is also the first deal under the American AI Exports Program, which was announced last year by Donald Trump’s administration.
After Donald Trump signed an executive order last July, the U.S. Department of Commerce started leading a program to promote the global export of complete American AI technology solutions.
Howard Lutnick attended the opening of the National AI Data Center and also joined the signing ceremony, showing strong support from the U.S. government for the Korean data center project.
Shinsegae Group said that its partnership with Reflection AI will help it become one of Korea’s leading AI cloud providers and strengthen the country’s position in the global AI market.
“The data center we are building with Reflection AI will not only serve as a new growth engine for Shinsegae but also as a turning point for Korea’s AI ecosystem,” Shinsegae Group Chairman Chung Yong-jin said.
“With our full-stack AI development for retail, we will be able to manage inventory more efficiently and improve profitability,” a Shinsegae official said. “We also plan to create a faster logistics system to prepare for the coming revolution in deliveries.”
“We have a narrow window to ensure the foundation of intelligence remains open and accessible to everyone, rather than controlled by a few,” Reflection CEO Misha Laskin said.
“South Korea is one of the world’s most technologically ambitious nations and one of America’s closest allies in the Pacific. Together, we’re building AI infrastructure that the Republic of Korea can control, audit and evolve on its own terms.”
Read More- Malaysia’s Unicorn CARSOME Group Inc Raises Over $30M in Strategic Funding Round
