FLNG Leader Samsung Heavy Industries to Build Korea's First Floating Data Center

Lee Jae-yong (left), Chairman of Samsung Electronics, shakes hands with Sam Altman, CEO of OpenAI, at the 'Signing Ceremony for the Mutual Cooperation LOI (Letter of Intent) to Build Global AI Core Infrastructure' at the Samsung Electronics Seocho building on October 1. / Photo provided by Samsung Electronics

[Korea Financial Times, Shin Haeju] Samsung Heavy Industries (CEO Choi Sung-ahn) is becoming the first Korean shipbuilder to develop a "floating data center."

Samsung Heavy Industries was named as a key participant when Samsung Group signed a "Letter of Intent (LOI) for Cooperation in Global AI Infrastructure Development" with OpenAI last month.

Samsung Heavy Industries will develop the floating data center together with Samsung C&T Corporation. Although specific design and manufacturing methods have not yet been finalized, the company will be responsible for manufacturing hull or barge-type substructures to enable stable data center operations at sea.

Underwater data centers are emerging as an alternative to overcome the limitations of land-based data centers. According to the "Economic Impact Analysis of Underwater Data Center Construction Projects" report, unlike land-based data centers that require enormous energy to cool servers, underwater data centers allow seawater to naturally absorb heat, eliminating or minimizing the need for separate cooling systems.

This can reduce energy consumption to cut operating costs and decrease carbon emissions. There is also the advantage of providing faster service to coastal area users, where half of the world's population resides.

According to Microsoft's "Project Natick," a data center installed 35 meters (m) underwater operated for two years showed a server failure rate approximately eight times lower than land-based data centers.

China's Highlander is constructing a commercial underwater data center covering approximately 68,000 square meters (㎡) at a depth of 35m underwater, aiming to save approximately 122 million kilowatt-hours (kWh) of electricity annually through seawater cooling.

Samsung Heavy Industries has demonstrated its offshore facility manufacturing capabilities through accumulated experience in building Floating Liquefied Natural Gas (FLNG) production, storage, and offloading facilities.

To date, the company has built three large-scale FLNG vessels including Prelude, Petronas, and Coral FLNG. In 2023, it secured orders for Petronas's "Zero-emission Liquefied Natural Gas (ZLNG)" and the Cedar FLNG project, which are currently under construction.

The company is currently in negotiations for ENI Coral Phase 2, Delfin, Golar, and Western LNG projects. It has also participated in the Front-End Engineering Design (FEED) bidding for projects being pursued by Argentina's state-owned energy company YPF and U.S. energy company Shell.

In addition to FLNG, Samsung Heavy Industries has a track record of building various large-scale offshore production facilities including Ichthys Central Processing Facility (CPF), Egina Floating Production, Storage and Offloading (FPSO), and Argos Floating Production Unit (FPU).