Shinsegae, U.S. firm to build Korea's largest AI data center

The project represents the first private-sector outcome tied to a broader Korea-U.S. technology cooperation framework.

Mar. 18, 2026 at 1:36am

Got story updates? Submit your updates here. ›

South Korea's Shinsegae Group has partnered with U.S. artificial intelligence firm Reflection AI to build the country's largest AI data center, marking a major step in Korea's push to become a global AI infrastructure hub. The 250-megawatt data center will be constructed in phases and is seen as an early flagship case linked to Washington's effort to export AI infrastructure to allied nations.

Why it matters

The initiative aligns U.S. AI strategy with South Korea's industrial ambitions, strengthening cooperation among allies while countering China in the global race for AI leadership. It also supports Seoul's "sovereign AI" strategy emphasizing domestic control over data, infrastructure and AI systems.

The details

The companies plan to build a full-stack AI platform offering cloud services, AI models and customized solutions for businesses and public institutions in Korea. Reflection AI, backed by major investors including Nvidia, is expected to provide access to critical hardware and infrastructure. For Shinsegae, the investment marks a strategic shift beyond its traditional retail business into AI infrastructure, aiming to integrate AI into commerce, including personalized shopping, automated inventory management and smart logistics.

  • The companies signed a memorandum of understanding in San Francisco on Sunday.
  • The joint venture will be established within the year, with construction to proceed in stages.

The players

Shinsegae Group

A major South Korean conglomerate with a focus on retail businesses.

Reflection AI

A U.S. artificial intelligence firm that specializes in open-weight AI models and infrastructure.

Chung Yong-jin

The chairman of Shinsegae Group, who played a key role in advancing the deal through his personal network in Washington.

Misha Raskin

The CEO of Reflection AI.

Howard Lutnick

The U.S. Commerce Secretary who attended the signing ceremony, signaling government support for the project.

Got photos? Submit your photos here. ›

What they’re saying

“The partnership would help Korea build independent and scalable AI infrastructure as a key U.S. ally.”

— Misha Raskin, CEO, Reflection AI

“The project would serve as a foundation for the company's future growth while contributing to the broader AI ecosystem in Korea.”

— Chung Yong-jin, Chairman, Shinsegae Group

What’s next

The joint venture will be established within the year, with construction to proceed in stages.

The takeaway

This project represents a strategic partnership between South Korea and the U.S. to develop advanced AI infrastructure, aligning with both countries' goals of strengthening technological cooperation and countering China's rise in the global AI race.