What happened
Naver announced that it has signed a definitive agreement with Brookfield to create a special‑purpose vehicle that will invest up to $9 billion in AI computing infrastructure, including GPUs and data‑center capacity. The financing satisfies a prerequisite for Nvidia’s planned $1 billion strategic equity investment in Naver. Under the deal, Brookfield will fund the build‑out while Naver Cloud will operate the resources and pay usage fees tied to revenue. Naver will provide payment guarantees for up to eight years, though no cash outflow occurs at signing. The AI factory is slated to start with 55 MW of capacity in the first half of 2027, expanding to 200 MW in 2028 and ultimately targeting 1 GW. Nvidia will contribute technical cooperation via its DSX high‑performance computing platform.
On Oct. 27, Naver disclosed that it had reached a definitive agreement with Brookfield to establish an SPV—tentatively named Asset Co.—which will invest up to $9 billion in AI resources. The resources, primarily GPUs and data‑center capacity, will be supplied to Naver Cloud, which will operate the so‑called AI factory.
The financing satisfies a condition for Nvidia’s planned $1 billion strategic equity investment, which was signed on July 24 at Nvidia’s headquarters. Nvidia will also provide technical cooperation centered on its DSX high‑performance computing platform.
Naver’s AI factory will initially deploy 55 MW of power in the first half of 2027, expanding to 200 MW by 2028 and ultimately targeting 1 GW. The core hub will be the existing GAK Sejong hyperscale data centre.
Brookfield will front the capital needed for the build‑out, while Naver Cloud will pay usage fees linked to business revenue. Naver has offered payment guarantees for up to eight years, which do not constitute an immediate cash outflow but could become a liability if usage fees are not met.
Why it matters
The agreement represents one of the largest single‑source AI infrastructure financings in the region, giving Naver the capital to build a hyperscale AI hub that can serve both its own services and external customers. By linking the Brookfield capital to usage‑based fees, Naver reduces upfront risk while securing the hardware needed to compete in generative‑AI workloads that demand massive GPU clusters. Nvidia’s concurrent $1 billion equity stake deepens its partnership with a major Asian cloud provider, potentially expanding Nvidia’s ecosystem and data‑center sales in East Asia. The deal also signals growing confidence from global asset managers in the long‑term profitability of AI compute assets, a trend that could spur further institutional capital into the sector.
The scale of the Brookfield commitment—up to $9 billion—is unprecedented for a single AI‑infrastructure financing deal in Asia, underscoring the growing appetite of institutional investors for long‑term AI assets.
By tying payments to revenue, Naver mitigates the risk of large upfront CAPEX, a model that could become a template for other cloud providers seeking to expand AI capacity without over‑leveraging balance sheets.
Nvidia’s equity stake not only provides capital but also deepens its strategic foothold in the Korean market, potentially accelerating adoption of its GPU and DSX technologies across the region.
The AI factory’s phased rollout (55 MW → 200 MW → 1 GW) aligns with projected demand for generative‑AI services, positioning Naver Cloud to attract enterprise customers that need on‑premise or hybrid AI .
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What to watch next
Key upcoming milestones include the completion of the third‑party share allotment, the start of construction at Naver Cloud’s GAK Sejong hub, and the operational launch of the 55 MW phase in early 2027. Observers should monitor how Naver structures the usage‑fee model, whether external customers adopt the platform, and any regulatory scrutiny of the large‑scale financing. Nvidia’s DSX rollout and any subsequent technology upgrades will also be critical to the factory’s performance. Finally, Brookfield’s willingness to commit such capital may similar SPV‑based financing structures from other asset managers targeting AI infrastructure.
The timing and terms of the third‑party share allotment, which Naver has said will be disclosed later, will reveal how much equity dilution the company is willing to accept for the financing.
Regulatory review of the SPV structure and the large cross‑border capital flow could affect the speed of implementation, especially given South Korea’s evolving oversight of AI‑related investments.
Adoption rates of the AI factory by external customers will be a key indicator of whether the revenue‑linked fee model delivers sustainable cash flow.
Progress on Nvidia’s DSX integration and any subsequent hardware refreshes will determine the competitive performance of Naver’s AI offering.