Samsung wants to build its first AI data center as it seeks to crack $1 billion dollar annual sales in cloud services
Posted by:
Olivia Smith
Samsung SDS, a division of Samsung focusing on IT services, has appointed a new CEO in November and announced plans to build a new AI data center in response to the increasing demand for AI compute capabilities. The company has acquired land and infrastructure at a Samsung Electronics plant in South Korea for around $15 million to expand its global portfolio of data centers. This move comes amidst a surge in AI workload requirements globally, with companies like Microsoft, Amazon Web Services, and Google Cloud also investing in infrastructure expansion.
Samsung SDS has been heavily investing in data center operations to meet the growing demand, recording a 35% revenue increase in cloud services in the third quarter of 2024. The company is also set to launch its FabriX AI service in collaboration with Microsoft Azure to expand its user base. Alongside the infrastructure investment, Samsung SDS appointed Lee June-Hee as the new chief executive, highlighting a focus on AI compute capabilities and ramping up infrastructure investments in the company’s current strategy.
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