Key Takeaways
- • Naver signed a contract with Brookfield on Oct. 27 to secure AI computing infrastructure worth up to $9 billion, satisfying the prerequisite for Nvidia's $1 billion strategic equity investment (about 1.5 trillion won).
- • Brookfield will form a special purpose vehicle, 'Asset Co.', funded 100 percent by a Brookfield investment vehicle, to acquire GPUs and data centre assets, with Asset Co. consolidated as a Naver subsidiary under K-IFRS.
- • Naver Cloud will lease computing resources from Asset Co. on a usage-fee basis tied to business revenue, reducing its upfront capital burden, with Naver providing payment guarantees for up to eight years.
- • The AI Factory plans 55 MW of operating capacity in the first half of 2027, expanding to 200 MW by 2028, anchored by the 'Gak Sejong' hyperscale data centre, with a long-term target of 1 gigawatt globally.
- • Naver said it will swiftly complete the third-party paid-in capital increase for Nvidia; further details are to be announced later.
Summary
Naver signed a computing infrastructure contract with global alternative investment firm Brookfield worth up to $9 billion, according to the company's announcement on October 27. The agreement fulfills a condition Naver had set when agreeing to attract a $1 billion equity investment from Nvidia, which requires Naver to secure at least $9 billion of computing infrastructure excluding those funds. With the condition met, Naver said it will swiftly complete the procedures for a third-party paid-in capital increase tied to Nvidia's investment.
Under the structure, Brookfield plans to establish a special purpose vehicle called 'Asset Co.' and invest up to $9 billion in AI infrastructure, including GPUs and data centres. Asset Co. will be funded entirely by a Brookfield investment vehicle but will be incorporated as a Naver subsidiary, because Naver's control will be recognised under Korean International Financial Reporting Standards. Naver Cloud will receive computing resources from the vehicle and act as operator, providing AI computing services to external customers.
The contract is designed to reduce Naver Cloud's initial investment burden. Rather than buying the infrastructure outright, Naver Cloud will pay usage fees linked to business revenue. To build trust in contract performance, Naver decided to provide payment guarantees for up to eight years on those fee obligations, and the company stated that the guarantee itself would not result in an actual cash outflow.
Naver and Naver Cloud will lead the AI Factory business, drawing on their experience operating large-scale GPU clusters and data centres. Nvidia will provide technical cooperation centred on its next-generation high-performance computing platform, 'DSX', aimed at improving infrastructure operating efficiency. The hyperscale data centre 'Gak Sejong' will serve as the key hub. Naver plans to begin operating 55 MW in the first half of 2027, expand to 200 MW by 2028, and extend the business overseas toward a long-term global AI Factory at 1 gigawatt scale.
Naver said the contract concretises an AI infrastructure model built on capital and technology cooperation with Nvidia and Brookfield. A Naver official said details of the third-party paid-in capital increase will be announced later.
Under the structure, Brookfield plans to establish a special purpose vehicle called 'Asset Co.' and invest up to $9 billion in AI infrastructure, including GPUs and data centres. Asset Co. will be funded entirely by a Brookfield investment vehicle but will be incorporated as a Naver subsidiary, because Naver's control will be recognised under Korean International Financial Reporting Standards. Naver Cloud will receive computing resources from the vehicle and act as operator, providing AI computing services to external customers.
The contract is designed to reduce Naver Cloud's initial investment burden. Rather than buying the infrastructure outright, Naver Cloud will pay usage fees linked to business revenue. To build trust in contract performance, Naver decided to provide payment guarantees for up to eight years on those fee obligations, and the company stated that the guarantee itself would not result in an actual cash outflow.
Naver and Naver Cloud will lead the AI Factory business, drawing on their experience operating large-scale GPU clusters and data centres. Nvidia will provide technical cooperation centred on its next-generation high-performance computing platform, 'DSX', aimed at improving infrastructure operating efficiency. The hyperscale data centre 'Gak Sejong' will serve as the key hub. Naver plans to begin operating 55 MW in the first half of 2027, expand to 200 MW by 2028, and extend the business overseas toward a long-term global AI Factory at 1 gigawatt scale.
Naver said the contract concretises an AI infrastructure model built on capital and technology cooperation with Nvidia and Brookfield. A Naver official said details of the third-party paid-in capital increase will be announced later.
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