NVIDIA Partners with Shinsegae to Build Korea's Largest AI Data Center Amid Domestic Chip Initiative

NVIDIA-backed Reflection AI signed a deal with South Korea's Shinsegae Group to establish a 250-megawatt AI data center. Concurrently, the Korean government initiated a $50 billion project to develop domestic AI chips, aiming to lessen reliance on NVIDIA. This dual development highlights NVIDIA's strategic importance to Korea amid U.S. export restrictions on Chinese AI markets, and the mutual dependence between NVIDIA and Korean semiconductor firms like SK Hynix and Samsung.

Published Mar 20, 2026

On March 16, 2026, Reflection AI, supported by NVIDIA, signed an agreement with Shinsegae Group for a 250-megawatt AI data center in South Korea. Simultaneously, the Korean government announced a $50 billion initiative to develop local AI chips to compete with NVIDIA.

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This reflects a shift as NVIDIA loses access to China and seeks to solidify its presence in Korea's market. Their commitment includes the deployment of 260,000 GPUs across major Korean enterprises. However, Korea's strategy involves using this NVIDIA infrastructure for five years while developing domestic alternatives.

Additionally, SK Hynix and Samsung play critical roles in NVIDIA's supply chain, reinforcing a mutual dependency in the semiconductor market. The situation illustrates both cooperation and strategic competition in the evolving AI landscape.