German energy giant RWE and global investor KKR have finalised a major deal that will see £12bn invested across two major UK offshore wind projects that are together expected to provide 2.8GW of renewable power capacity, the two companies today announced.
Believed to be one of the biggest investments in the UK offshore wind sector to date, the deal is set to support the delivery of the Vanguard West and Vanguard East projects off the coast of Norfolk, including the construction of the wind farms and their associated transmission infrastructure.
The deal sees KKR acquire a 50 per cent stake to establish a 50:50 joint venture with RWE on both projects. The companies said onshore infrastructure works for the projects are "already well advanced", with offshore construction set to commence early next year and the wind farms slated to come online in 2030.
Once completed, the two offshore wind farms - each boasting 1.4GW of generation capacity - are expected to provide enough clean power to supply the equivalent of around three million UK homes, while supporting 2,400 jobs during construction and operation.
The investment is supported by equity commitments from both RWE and KKR, alongside "non-recourse" project financing secured from a consortium of international lenders, including £1bn across the two projects from the UK's National Wealth Fund.
Both Vanguard East and West were awarded 20-year Contracts for Difference (CfD) in the most recent auction round earlier this year, providing guaranteed prices for the power supplied by the projects.
Prime Minister Andy Burnham hailed the investment as "a vote of confidence for building in Britain".
"And it is great news for billpayers because every turbine we put up is power under British control, not at the mercy of events on the other side of the world," he added. "With coastal communities from Scotland to East Anglia powering Britain's future, the places that host this energy benefit from the jobs and opportunities that it brings.
"Our National Wealth Fund means that public investment is working alongside private capital to build homegrown energy and bring a return for the taxpayer. Because for me, a clean energy future is one that brings down bills."
Energy Security and Net Zero Secretary Miatta Fahnbulleh also welcomed the backing for offshore wind as "another vote of confidence in British homegrown, clean energy", which underscored the UK's climate and clean energy leadership on the global stage.
"Investment in offshore wind and clean power is creating quality jobs and rebuilding industry, while delivering the clean power we need to lower bills and reach net zero," she said. "As the world gathers at COP31, Britain is leading from the front as a renewable energy powerhouse, turning the fight against climate change into a brighter future for British companies, industrial communities, and future generations."
The National Wealth Fund has lent £500m to both Vanguard West and East projects, bringing its total commitment to the offshore wind farms to £1bn and marking the publicly-owned investor's first project financing for UK offshore wind farms.
Oliver Holbourn, CEO of the National Wealth Fund, said: "With recent volatility in global energy markets, the need for a reliable source of affordable homegrown renewable energy has never been stronger. Offshore wind is part of that mix, but it needs very significant investment, at pace. That's where the National Wealth Fund comes in, widening the pools of capital available and reinforcing momentum in the sector."
The new investment was also welcomed by CBI chief executive Rain Newton-Smith, who hailed it as "a powerful restatement of the UK's clean energy ambitions and the economic opportunities they can unlock".
"Investment on this scale can attract further private capital, create skilled jobs and support growth in communities across the country," she said. "At the same time, investing in and deploying homegrown clean power can strengthen the UK's energy security and reduce our exposure to volatile international energy markets. The prize is a more secure and affordable energy system that strengthens UK competitiveness and cements our position at the forefront of the global clean energy transition."
And in a further boost for the offshore wind sector, energy giant SSE today announced it has selected Siemens Energy as the preferred supplier for offshore wind turbines and substation platforms for its 1.4GW Berwick Bank B project.
Subject to a final investment decision, the contract is expected to support almost 2,700 jobs in UK manufacturing, engineering, project delivery and servicing roles for the offshore wind farm, which is being developed in the outer Forth of Firth around 38 kilometres off the Scottish coast.
At its full capacity, Berwick Bank could become the world's largest offshore wind farm, capable of meeting more than six per cent of the UK's current electricity demand.
The announcement comes ahead of Burnham's attendance at the COP31 Climate Summit in Antalya, where he is expected to use his speech tomorrow to highlight the investments as evidence of the UK's commitment to clean power and climate action.
However, it also comes against a backdrop of accusations from climate campaigners that the government has sent mixed signals on its support for clean energy in recent weeks.
Separately yesterday, the government rejected plans for the huge 840MW Botley West solar farm in Oxfordshire, following fierce opposition from some local groups over the potential impact on local farmland and nature.
Ministers also last week confirmed plans to "pause" next year's CfD auction, while they carry out a review of the flagship clean power contract scheme designed to prioritise bringing down energy system costs and avoid the delivery of new renewables projects that could then be curtailed by limited grid capacity.
The government has maintained it remains fully committed to the UK's net zero targets and clean energy transition, and any reforms will be designed to ensure clean energy use is optimised and costs for households and businesses are kept as low as possible.
But critics have warned the changes mean the government's target to deliver a clean power system by 2030 will almost certainly be missed, while there are also concerns that a proposed weakening of electric vehicle sales targets and the potential approval of the controversial Rosebank oil field could put the UK's legally-binding emissions targets at risk.
By Irina Slav - Nov 11, 2026, 6:00 PM CST
Utilities built a total of over 21,000 km of new transmission lines last year, the International Renewable Energy Agency reported this week at COP31, citing data from a group called the Utilities for Net Zero Alliance. This is 50% more than the new transmission lines installed during the previous year, IRENA noted in its report.
“Power grids will make or break not only the energy transition but also the world’s ambition to raise global electrification to 35% by 2035, as championed by the Turkish COP31 Presidency,” said the director-general of IRENA, Francesco La Camera. “IRENA’s analysis shows that global grid investment must more than double, reaching a cumulative USD 10 trillion by 2035,” he added, noting that ambition would not be enough and that “We must move from targets to implementation, from individual projects to system-wide transformation, and from commitments to delivery at scale.”
Transmission line capacity has become one of the biggest obstacles in the path of the energy transition. Due to their weather-dependent, variable output nature, wind and solar installations generate electricity intermittently. Because the best locations for such installations are often far from electricity demand centers, having to waste output in times of low demand is a frequent occurrence with both. Called curtailment, wind and solar electricity waste increases costs for the alternative energy sources.
The solution, net-zero proponents such as the International Energy Agency believe, is to expand the grid by building new transmission lines connecting wind and solar installations with demand centers. Back in 2023, the IEA said utilities needed to add or replace some 50 million km of transmission lines by 2040 if Paris Agreement signatories were to meet their commitments.
Forecasting how many millions of kilometers of cable need to be built or replaced, however, is one thing, while paying for it is quite another. Last year, the European Commission estimatedthat the European Union alone needs to cough up between $2 trillion and $2.3 trillion on grid upgrades by 2050 to achieve the Commission’s climate goals. For context, EU investment in the grid in 2024 stood at $90.5 billion. This would need to rise to over $100 billion annually, according to energy think tank Bruegel.
$100 billion in grid buildout investment is no small potatoes, yet some believe this investment would be inevitable as energy security takes priority over climate change concerns. Wood Mackenzie said this week that countries that prioritize energy security over emission-reduction plans could achieve lower emissions through faster electrification, replacing hydrocarbon import dependence.
“The energy transition has arrived at a genuine crossroads,” Prakash Sharma, Wood Mackenzie’s head of scenarios and technologies, said. “The world is no longer moving in one direction. Nations are making fundamentally different choices about how to power their economies, and those choices are producing outcomes that confound conventional wisdom.”
Energy security has indeed come to the fore since February, with emission reduction taking the back seat as governments struggle to keep energy relatively affordable without emptying state coffers and slipping into a recession. This has proven hard for many that depend on imports of oil and gas, with the effects of this dependence especially obvious in most of Asia and the European Union.
Reducing this dependence on imports has become an obvious path for many of these governments, as much as it is possible. And the most obvious way of reducing this dependence has been electrification, wherever possible. According to Wood Mackenzie, the impact of the war in Iran on energy prices would drive a shift to electrification, a wind and solar buildout, and nuclear generation expansion to produce more energy locally. This, in turn, would inevitably lead to lower emissions, even though, ironically, these lower emissions are not the priority.
COP31 host Turkey has proposed that participants commit to electrification, aiming for electricity to account for 35% of final energy. That would be up from some 20% today, with most of the world’s final energy still coming from hydrocarbons despite the net-zero rush from the last ten years. What is interesting, however, is that the proposal does not include a stipulation for reducing the use of hydrocarbons. Based on Wood Mackenzie’s scenario for inadvertent emission reduction, the lower use of hydrocarbons would happen organically rather than by means of government regulation enforcement.
Such developments would be an interesting departure from what has become the standard modus operandi of pro-transition governments: regulation, emission-cutting mandates, and penalties for using hydrocarbons, such as credit offsets. Instead, the energy ramifications of geopolitical events could lead to what one could describe as an organic shift away from imported hydrocarbons, while countries with their own mineral resources exploit those more fully. Whether such an organic shift would indeed reduce the consumption of oil, gas, and coal, however, remains to be seen.
https://oilprice.com/Energy/Energy-General/Global-Power-Grid-Expansion-Surges-50-to-Record-High.html
LONDON – A tanker carrying approximately 40,000 metric tons of Russian diesel has stalled in the North Atlantic before reaching the US East Coast, with its next destination uncertain, international market intelligence provider Kpler said Tuesday.
The tanker AGIOI FANENDES loaded ultra-low sulfur diesel at Russia's Primorsk port on Oct 23 and initially listed New York as its destination, with an expected arrival date of Nov 7, Kpler said. However, its Automatic Identification System (AIS) destination was subsequently changed to "FOR ORDERS."
Since Nov 9, the vessel has remained almost stationary, while its draft has stayed unchanged at 11 meters, suggesting that no cargo has been discharged. Its next movement remains uncertain.
Eastmed, the Greece-based company managing the Malta-flagged tanker, told media on Tuesday that the vessel was still awaiting orders and that its destination had not changed.
British maritime intelligence company Windward said Tuesday that one of two tankers it had assessed with high confidence as carrying Russian diesel to the United States had turned around.
Even if the second tanker continued toward the United States, its cargo was likely not diesel, the company said.
The US Treasury Department's Office of Foreign Assets Control announced on Oct 9 that it would ease sanctions on Russian diesel trade over the coming months to alleviate tight domestic diesel supplies and curb fuel prices.
Windward said that despite the issuance of US General License 135, no Russian diesel may ultimately reach the United States.
However, US Energy Secretary Chris Wright said Tuesday that Washington was confident the Russian diesel cargo would eventually be sold on the global market, despite the tanker's recent halt.
The planned imports have nevertheless raised legal and regulatory concerns in the United States, with warnings that accepting Russian diesel shipments could violate federal law and expose businesses to potential penalties.
https://www.chinadailyasia.com/article/642528
Crude oil prices reversed their fall from earlier this week as traders grew less optimistic about a peace deal between the United States and Iran amid continuing tanker attacks in the Strait of Hormuz, with a record number of such attacks in October.
At the time of writing, Brent crude was trading at $92.43 per barrel, with West Texas Intermediate at $86.62 per barrel, both up from the start of the week but still sharply down from the end of October, when Brent crude was over $110 per barrel, and WTI was over $100.
As many as 37 vessels were attacked in the Strait of Hormuz last month, Reuters reported on Tuesday, citing data from the Washington Institute for Near East Policy. According to the International Maritime Organization, since the start of the war, a total of 130 vessels have come under attack in the area.
Houthi attacks on Saudi infrastructure also continue, further clouding the security situation in the Middle East and limiting the downward potential of oil prices, especially after one of the latest targets of the Houthis was the East-West pipeline, again.
“Even in the event a deal is struck, an increase in flows through the waterway would still depend on mine clearance, insurance costs and whether or not shipowners would even be willing to take the risk,” LSEG Oil Research said earlier this week, as cited by Reuters.
FxPro chief market analyst Alex Kuptsikevich, meanwhile, noted that the geopolitical premium to oil is gradually fading as energy flows out of the Persian Gulf improve. “Oil has fallen by more than 20% from its late-October highs as investors continue to price out geopolitical risk premiums,” Kuptsikevich said in a note Tuesday. “At the same time, transport costs are falling, while production and export volumes are returning to pre-war levels,” he added, noting a Reuters survey of experts estimated that OPEC oil production rose to 22.87 million barrels per day in October, which is close to 90% of February levels.
https://oilprice.com/Latest-Energy-News/World-News/Oil-Prices-Rise-as-Iran-Peace-Optimism-Fades.html
Lithium Americas (TSX, NYSE: LAC) has raised the estimated cost of the first phase of its flagship Thacker Pass lithium project in Nevada by 31% to $3.83 billion, citing rising labour, construction and logistics expenses.
The revised budget adds $895 million in capital costs and increases the project's funding requirement by about $995 million, the company said Wednesday. Lithium Americas expects to cover the additional amount through company contributions and available reserves under a US Department of Energy (DOE) loan.
Investors reacted negatively to the news, sending Lithium Americas shares down almost 8% to C$2.48 apiece in early Toronto trading. The decline left the company with a market capitalization of nearly C$544 million ($382 million).
“Thacker Pass is on track to deliver America's largest fully integrated source of domestic battery-quality lithium carbonate, and we are building it at pace,” CEO Jonathan Evans said in a statement. “Phase 1 is advancing toward peak construction activity by year end 2026, with mechanical completion targeted for late 2027.”
The cost increase underscores the challenges of building a domestic lithium supply chain in the US, where rising wages, skilled labour shortages and tariffs are adding pressure to major mining developments. Thacker Pass, a joint venture with US automaker General Motors (NYSE: GM), is expected to supply enough lithium for about 1 million electric vehicles annually.
Construction Pressures
Higher labour installation rates for piping, steel and equipment accounted for $245 million of the increase, while tariffs and logistics added approximately $100 million.
Lithium Americas now expects to spend between $1.7 billion and $2 billion on Phase 1 in 2026, compared with its previous forecast of $1.3 billion to $1.6 billion.
Despite the higher costs, the company continues to target commercial production in 2028, with Phase 1 designed to produce 40,000 tonnes of battery-grade lithium carbonate annually at full capacity.
The revised estimate puts greater pressure on construction productivity and cost controls as the project moves through its most labour-intensive stages. Further increases could strain available financing even if the company maintains its production schedule.
Funding Requirements
Lithium Americas expects to meet the additional funding requirement through contributions to the joint venture and available DOE loan reserves, reducing the need to seek entirely new financing.
The company held about $1.3 billion in cash and restricted cash as of Sept. 30, including approximately $360 million at the Thacker Pass joint venture.
The DOE-backed financing provides an important source of capital for the development, which is intended to strengthen US access to battery-grade lithium and reduce reliance on imported materials.
https://www.canadianminingjournal.com/news/lithium-americas-flagship-thacker-pass-costs-jump-31/
Copper futures rose toward $6.30 per pound on Wednesday, rebounding from four-month lows as physical supply tightened in China, the largest copper consumer, according to Trading Economics. The source reported that import premiums in China have hit record levels in recent weeks, refined copper shipments have fallen this year, and domestic smelters have cut production because of higher ore costs and thinner profit margins.
China has also struggled to rebuild inventories as large volumes of copper were redirected to the United States ahead of possible import tariffs, the source stated. Additional support came from renewed investor interest in the artificial intelligence sector after strong earnings from neocloud provider CoreWeave, according to the source.
Copper benefits directly from the global buildout of AI infrastructure because of its essential role in data centers and power networks, the source noted. However, a Democratic sweep in the US midterm elections raised the prospect of tighter AI regulations and slower data center development, according to the source.
https://www.indexbox.io/blog/copper-futures-rebound-toward-630-as-china-supply-tightens/
Altius Minerals Corporation TSEALS OTCMKTSATUSF said on Wednesday it agreed to acquire TNR Gold Corp. CVETNR in a transaction valuing TNR at about C$122 million. The proposed C$0.48 per share package represents an estimated 60 per cent premium to TNR's Nov. 10 close, including the assigned value of a gold-project spinout.
Before the announcement, Altius TSEALS shares fell 2.2 per cent to C$53.01 at the Nov. 10 close, recorded at 4 p.m. EST on the TSX. TNR CVETNR shares closed unchanged at C$0.30 at 4 p.m. EST on the TSX Venture Exchange on Nov. 10.
Under the Nov. 11 agreement, each eligible TNR share would be exchanged for 0.0072 Altius shares and 0.25 of a share in a newly formed British Columbia company, TNR SpinCo. The release assigns C$0.38 per TNR share to Altius stock and C$0.10 to the SpinCo interest.
Altius would acquire effective net smelter return royalties of 0.36 per cent on Los Azules copper and 1.35 per cent on Mariana lithium in Argentina, alongside a Josemaria copper-gold royalty interest. Closing requires TNR shareholder approval, Supreme Court of British Columbia orders and TSX approval to list the consideration shares.
"This transaction adds a significant development stage royalty over the Los Azules project, which offers the potential for decades of increased copper exposure within our portfolio," Altius chief executive Brian Dalton said in the release.
The Nov. 11 valuation comprises C$97 million in Altius shares and C$25 million assigned to SpinCo. It uses Altius's Nov. 10 closing share price, so the stock component's value can change before completion.
The Nov. 11 terms give SpinCo the Shotgun gold project in Alaska and related assets and liabilities. Altius would retain a 0.5 per cent net smelter return royalty on Shotgun.
Under the Nov. 11 agreement, Altius would subscribe C$2.2 million for SpinCo shares at closing, increasing its interest to about 19.9 per cent from about 12 per cent. The acquisition consideration itself consists of shares rather than cash.
Former TNR shareholders would initially hold about 88 per cent of SpinCo before that subscription, while fractional share entitlements would be rounded down without compensation.
TNR directors and officers are among shareholders representing about 28 per cent of outstanding shares who signed voting and support agreements. Approval requires at least two-thirds of votes cast and a simple majority after excluding votes required under minority-protection rules.
The purchase would add copper and lithium royalty exposure to Altius, while peer Franco-Nevada Corporation TSEFNV NYSEFNV describes its business as gold-focused royalties and streaming.
TNR expects to hold its shareholder meeting in December 2026.
https://mugglehead.com/altius-minerals-tnr-gold-royalty-acquisition-spinout/
Centerra Gold Inc. said infrastructure refurbishment at Thompson Creek advanced from 65% at end-September to 75% at end-October, with first production still targeted for mid-2027. The mine is expected to produce approximately 5,900 tonnes of contained molybdenum annually, equivalent to around 2% of the 2025 global market. Captive concentrate will lift utilization at the Langeloth metallurgical facility from roughly one-third to about two-thirds of its approximately 18,144-tonne contained-molybdenum annual capacity. The project remains under construction and should not yet be counted as current supply.
Hot-rolled coil (HRC) prices in Europe are currently driven by lower imports and higher energy and transportation costs rather than demand, sources told Fastmarkets on Tuesday November 10.
HRC prices in Europe are currently driven by lower imports and higher energy and transportation costs rather than demand, sources told Fastmarkets on Tuesday November 10.
An Italian buyer source reported deal levels in the country at €750 ($839) per tonne ex-works, versus unofficial targets of €780 per tonne ex-works.
“But I believe the gap will be closed till Christmas as import is too tight,” he said.
A seller source meanwhile reported offers within the range of €750-765 per tonne ex-works and indications of tradable levels within the range of €740-760 per tonne.
Fastmarkets’ daily steel hot-rolled coil index, domestic, ex-works Italy, was calculated at €750.31 per tonne on Tuesday November 10, up by €4.48 from €745.83 per tonne on Monday November 9.
The index was up by €4.31 per tonne week on week and up by €7.81 per tonne month on month.
In Northern Europe, a re-roller was heard selling material at €780 per tonne delivered, equivalent to €760-765 per tonne ex-works. The same re-roller is said to be negotiating at €790 per tonne delivered, equivalent to €770-775 per tonne ex-works.
Other mills were heard selling within the range of €770-780 per tonne delivered or €750-765 per tonne ex-works.
A German buyer confirmed purchasing some lots at €760 per tonne but said that in new negotiations mills are targeting €775-795 per tonne ex-works, pushed by tighter imports and higher energy and transportation costs.
The general range of offers was reported at €770-800 per tonne delivered or €750-785 per tonne ex-works.
Separately, the market leader was heard offering its HRC at €820 per tonne delivered or ex-works, but this price was not included in the index calculation as it was too high.
Fastmarkets’ daily steel hot-rolled coil index, domestic, ex-works Northern Europe, was calculated at €762.50 per tonne on Tuesday November 10, down by €1.50 per tonne from €764 per tonne on Monday November 9.
The index was up by €4.31 per tonne week on week and up by €7.81 per tonne month on month.
https://eurometal.net/european-hrc-prices-firm-on-reduced-imports-higher-energy-and-transport-costs/
Luxembourg-based steel producer ArcelorMittal has announced that Dutch metal distributor Galvano Metaal has added its XCarb recycled and renewably produced steel to its hot rolled pickled sheet product portfolio, expanding the availability of lower-carbon steel products for manufacturers.
According to statement, the addition is aimed at providing Galvano Metaal's customers with more steel options that can help reduce the carbon footprint of their products while maintaining the quality and functionality of conventional steel.
Galvano Metaal expands low-carbon steel offering
ArcelorMittal stated that its XCarb recycled and renewably produced steel is manufactured using recycled steel and renewable electricity, enabling manufacturers to reduce the carbon footprint of their products.
Sohail Rahimi, purchasing manager at Galvano Metaal, noted that decarbonization is receiving increasing attention in the market and that the company aims to provide customers with different steel options, including XCarb. Meanwhile, Erwin De Proost, ArcelorMittal account manager for Galvano Metaal, stated that demand for XCarb steel with a physically low carbon footprint is increasing across almost all market segments. He added that replacing conventional steel with XCarb recycled and renewably produced steel can significantly reduce the carbon footprint of finished products without compromising their quality or functionality.
The company also highlighted that the use of lower-carbon steel can contribute to reducing Scope 3 emissions across the supply chains of steel processors, manufacturers and end users, including those operating in the consumer goods and construction sectors.
Galvano Metaal, which sources its products exclusively from European steel producers, also implements sustainability measures in its own operations, including the use of solar energy, LED lighting, waste separation, efficient transport planning and a vehicle fleet consisting largely of hybrid or electric vehicles.
According to ArcelorMittal, the expansion of Galvano Metaal's portfolio builds on the companies' longstanding commercial relationship and combines the distributor's market knowledge and customer network with ArcelorMittal's expertise in lower-carbon steel production.
The association points to a loss of competitiveness and mounting costs
Italian steel producers are being forced to suspend operations due to high electricity and gas costs. This was stated by the industry association Federacciai, reports Corriere della Sera.
According to Federacciai, under these conditions major steel companies have already suspended or are gradually shutting down production. The association notes that continuing operations currently means accumulating costs that are extremely difficult to cover, as well as losing competitiveness against European peers.
This is an alarming signal for one of the strategic sectors of Italian industry, and it comes just as the government has adopted a new decree aimed at tackling the problem of high energy bills.
Federacciai also points to a certain paradox: the Italian steel industry is one of the most decarbonized in Europe, yet it suffers the most from high electricity costs. This situation threatens to turn into a structural disadvantage compared to producers from other countries.
The association did not specify which companies have suspended operations or what production volumes are involved. However, it will soon initiate a meeting with the metalworkers’ trade unions Fiom, Fim and Uilm to explain the seriousness of the situation and express concern about the possible impact on the stability of the steel and related sectors.
Meanwhile, Italian Minister of Economy Giancarlo Giorgetti responded to Federacciai’s warning, acknowledging that at such energy prices it is becoming impossible to compete internationally. According to him, an export-oriented country needs to stabilize the situation.
As GMK Center reported earlier, the Italian government prepared a package of measures aimed at curbing rising gas prices and reducing the financial burden on households and businesses. The state will compensate gas-fired power plants for the difference between the market price at the TTF hub and the set cap. The initiative has already drawn criticism from energy companies, which have been assigned part of the financial burden.
https://gmk.center/en/news/italian-steelmakers-halt-production-due-to-energy-costs-federacciai/
Montreal-based steel pipe producer Nova Steel has announced 36 temporary layoffs at its Saint-Patrick facility, effective November 13, amid declining orders attributed to unfairly priced imports. The company is urging Ottawa to strengthen trade enforcement and stimulate demand for Canadian steel.
Import competition weighs on pipe orders
Nova Steel, which describes itself as Canada's only producer of standard steel pipe, said its domestic market share remains below 25 percent despite investments exceeding $200 million in technology and buildings.
President and CEO Scott Jones said shrinking order backlogs have necessitated shift reductions. He warned that the layoffs could become permanent, with further job losses possible, unless additional measures are introduced within two to three months.
Company seeks stronger procurement requirements
Nova reaffirmed its commitment to Canadian hot rolled coil for pipe production. Its products serve plumbing, heating, fire protection, mining, water well casing and fencing applications.
The company called for stronger action against dumped imports, a coordinated North American approach to steel protection, enforceable Canadian purchasing requirements across federal, provincial and municipal projects, and incentives encouraging private developers to source domestically.
By Nam Hyun-woo
GS Group and POSCO will form a strategic partnership in the artificial intelligence (AI) data center market, combining GS Group's expertise in data center construction and operation with POSCO's high-quality steel materials and technological solutions.
GS Group said Wednesday that it has signed a memorandum of understanding with POSCO on a strategic partnership in the AI data center business. The signing ceremony was attended by GS Group Vice Chairman Hong Soon-ki, POSCO CEO Lee Hee-geun and other executives from both companies.
Through the agreement, the two companies plan to minimize delays in the supply of equipment and materials during the construction of large-scale data centers and optimize material selection and design solutions to shorten construction periods and reduce costs. These efforts are expected to facilitate the early operation of data centers and improve their profitability, GS Group said.
The agreement also includes practical cooperation to explore ways to reduce operating costs, improve space utilization and enhance the durability of facilities and equipment to strengthen the long-term operational competitiveness of data centers.
The two sides will join efforts for global market entry as well, by leveraging the overseas business networks of GS Global and POSCO to identify data center development demands and jointly explore opportunities to supply materials and equipment for overseas projects.
“AI data centers require capabilities from various industries to enable stable power supply, rapid construction and efficient operation,” Hong said. “Through this partnership, we will combine GS Group’s data center development capabilities with POSCO’s world-class materials and solutions to explore new growth opportunities in the global AI infrastructure market.”
Lee said AI data centers represent a new growth segment that will drive global demand for steel and materials, adding that the two sides will “establish a strong leadership position in the global AI data center market.”
GS Group is currently pursuing a 2.4-gigawatt data center project in Donghae, Gangwon Province, through its subsidiary GS AI Infrastructure. In September, the group announced plans to invest approximately 15 trillion won ($11.23 billion) in the first phase of the project and obtained a construction permit for its first 100-megawatt data center in October.
POSCO established a new Future Demand Development Office this year to identify business opportunities in AI data center and power grid businesses. The company is also expanding its development of high-value-added steel materials and solutions for data center applications, ranging from structural components to power and cooling equipment.