Naver to Build Gigawatt-Scale AI Data Centers with Nvidia

Naver Plans Massive AI Infrastructure Expansion

South Korean internet conglomerate Naver will construct AI data centers at gigawatt scale using Nvidia technology, the chipmaker announced Monday. The ambitious infrastructure project represents one of the largest commitments to AI computing capacity by an Asian technology company.

Nvidia disclosed the partnership as part of Naver's strategy to position itself for accelerating global demand in artificial intelligence services and physical AI applications. The gigawatt-scale designation indicates data centers consuming at least one billion watts of power—a magnitude typically associated with the largest hyperscale cloud facilities operated by companies like Microsoft, Google, and Amazon.

Why it matters

The announcement signals how rapidly AI infrastructure requirements are scaling beyond traditional tech giants. Naver's investment reflects the competitive pressure on regional internet leaders to build sovereign AI capabilities rather than rely entirely on Western cloud providers. Gigawatt-scale facilities require years of planning and billions in capital, indicating Naver sees sustained long-term demand for AI compute capacity in Asia-Pacific markets.

Physical AI Drives Compute Demands

Nvidia specifically cited physical AI as a driver for the expanded infrastructure. Physical AI refers to systems that interact with the real world through robotics, autonomous vehicles, and industrial automation—applications that require substantial computing power for real-time processing and model training.

The partnership positions Naver to serve both cloud-based AI services and the emerging physical AI sector, which demands low-latency processing and specialized hardware configurations that Nvidia's platform provides.

Strategic Context for South Korea

The project aligns with South Korea's national strategy to establish itself as a leader in advanced semiconductor manufacturing and AI infrastructure. Naver, the country's dominant search engine and internet platform, has been expanding its AI capabilities across consumer services, enterprise solutions, and cloud computing.

Gigawatt-scale data centers require significant electrical infrastructure and cooling systems, making site selection and energy sourcing critical factors. Details about specific locations, construction timelines, and total investment were not disclosed in Nvidia's announcement.

Reuters first reported the details of the partnership on June 7, 2026.