Pohang pivots to AI data centers amid steel slump and POSCO strikes

Pohang City is pursuing a strategic industrial shift toward AI data centers to offset the dual challenges of a steel industry downturn and labor unrest at POSCO. The city is focusing on securing critical infrastructure, as the planned data centers could demand up to 2.14GW of electricity and significant water supplies.

Key projects include the Neo AI Cloud data center in the Gwangmyeong Industrial Complex and potential investments from DCI Data Center. SK is also reportedly considering the Blue Valley National Industrial Complex as a candidate for data center investment. To support this, Pohang plans to coordinate with the Ministry of Trade, Industry and Energy and KEPCO to reinforce power grids and substations.

Simultaneously, the city is preparing for a 120-hour partial strike by the POSCO labor union scheduled to begin on the 16th. Local authorities are monitoring the impact on logistics, employment, and local businesses, promising emergency management funds and special guarantees for subcontractors if the strike causes prolonged economic hardship.