SK gas mulls LNG-powered data center cooling system build

[Courtesy of SK gas Ltd.]

SK gas Ltd. is considering building a liquefied natural gas (LNG)-powered data center cooling system in Ulsan as the eastern coastal city in South Korea seeks to become a data center hub.

According to industry sources on Sunday, SK gas plans to use cold energy from LNG storage facilities in Ulsan, where a Northeast Asia oil and gas hub is being developed. This initiative marks Korea’s first attempt to use LNG cold energy for data center cooling, which is expected to cut annual electricity costs by billions of won and improve cooling water efficiency.

Data centers, which are gaining more of the spotlight as the artificial intelligence (AI) industry expands, with their various electronic equipment and servers consuming massive amounts of power. Managing the significant amount of heat generated during operation is a key issue, and while cooling systems to control this heat are essential, they consume a large amount of energy.

The cooling system that is being promoted by SK gas will fully use the cold energy generated by current LNG storage facilities, differentiating it from existing systems. SK gas is collaborating with the Korea National Oil Corp. on an LNG combined terminal project to provide LNG storage and transmission services in the north port of Ulsan. This facility will generate a large amount of cold energy, prompting interest in its usage.

LNG, stored at an ultra-low temperature of minus 162 degrees Celsius, is supplied to consumers as vaporized city gas and the stored cold energy is released during vaporization. This energy can be used in applications such as air liquefaction, cold power generation, and refrigerated warehouses. Using this cold energy is expected to reduce annual electricity costs by 3 billion won ($218 million) to 5 billion won and decrease cooling water consumption by more than 50 percent.

Earlier in 2024, SK gas and Ulsan City reached a consensus on building a data center and the use of cold energy, as Ulsan Mayor Kim Doo-gyeom and SK gas President Yoon Byung-suk agreed to cooperate on a data center cluster development project in the U.S. city of Houston. SK gas proposed entering the new business of using cold energy and promoting the establishment of a data center on the unused land owned by SK chemicals Co. Ulsan, which house a large industrial complex, is seeking various cooperation opportunities with private industry players to develop itself into a data center hub.