Hanwha Solutions, SKS Credit propel to build eco-friendly data center

Hanwha Solutions Corp. said on Monday that its business unit Hanwha Solutions Insight Division has signed a memorandum of understanding (MOU) with SKS Credit, an ESG specialized operator, to jointly develop data centers and logistics centers linked to renewable energy. 

Hanwha Solutions Insight Division is a newly established entity that carries out various complex development projects such as the development and operation of new and renewable energy in South Korea and SKS Credit is an alternative investment and ESG funds-focused asset management spin-off from SKS Private Equity.

Under the agreement, Hanwha and SKS will share their roles and promote joint investment by utilizing their respective expertise. 

Hanwha will discover and invest in such projects as eco-friendly data centers and logistics centers to be linked to renewable energy generation. 

SKS Credit will create a new fund worth 250 billion won ($203 million) to finance those investments, taking advantage of its experience to manage a $1 billion corporate partnership fund set up by SK Group and the National Pension Service in Dec. 2019.

"Although investment sentiment is shrinking due to high-interest rates and unstable financial market conditions, steady optimism in renewable energy infrastructure will help us to successfully raise the target amount," an SKS official said.

Hanwha has been driving to build eco-friendly data centers in industrial complexes in Yongin and Anseong since May 22. 

"As achieving RE100 and procuring renewable energy become more important than ever for businesses to survive in the global market, we will actively engage in domestic renewable energy development projects," said Shin Dong-jin, head of Hanwha Solutions Insight Division.

Write to Ik-Whan Kim at lovepen@hankyung.com