Samsung expands beyond AI chips with plans for data centres

In short: Samsung is trying to become a one-stop supplier for AI data centres, not just a maker of memory chips.

What's going on

Samsung Group, best known for Samsung Electronics, has made a lot of money from memory chips used in AI systems. Now it wants to push deeper into the places where AI runs, which are data centres (large buildings filled with computers, like warehouses for computing power).

Over the past year, Samsung has taken several steps in that direction. It invested $1 billion in Helix Digital Infrastructure, a data centre operator backed by KKR and Nvidia. It also bought FläktGroup, a European company that makes cooling systems, which are needed because data centre computers create a lot of heat.

Samsung is also working with major AI companies. It has signed a partnership with OpenAI and Samsung SDS, its IT services unit, is in early talks with OpenAI and Anthropic about renting space in Samsung-run data centres. Analysts cited by the Financial Times expect Samsung SDS data centre revenue could reach 6.6 trillion won (about $4.9 billion) a year by 2031, around six times current levels.

Samsung’s pitch is that different parts of the group can work together. One unit can build the data centre, another can run it, another can supply backup batteries, and Samsung Electronics can supply the chips and related parts.

What to watch

A key question is whether Samsung can coordinate its many businesses well enough to sell this “all-in-one” service to outside customers, not just to Samsung companies. Investors are also watching whether the large sums being spent on AI data centres will pay off, and whether new local rules could slow data centre construction in some places.

Source: Financial Times