Warburg Pincus and Korea’s Widecreek Asset Management have kicked off development of a massive 80MW (56MW IT load) data center in Yongin, south of Seoul, after acquiring full ownership of the project vehicle and commencing site preparation works.

According to industry sources on September 23, Widecreek acquired 100% of Yongin Deokseong Data Center PFV in September for KRW 110 billion. The project, located in Deokseong-ri, Cheoin-gu, covers a 46,545 m² land parcel with approvals in place for a two-basement, four-above-ground facility totaling 64,703 m² of GFA.

The development budget slightly exceeds KRW 1.2 trillion (approx. USD 870 million). Warburg Pincus is expected to contribute KRW 420 billion, including the PFV stake purchase, while Widecreek plans to raise the remaining KRW 800 billion through project financing by late this year or early 2026.

Eugene Investment & Securities and MDM Asset Management, both involved in the original site acquisition, will lead-arrange the financing.

Importantly, equity will account for roughly 35% of total project cost, significantly higher than the typical Korean project finance standard, enhancing credit quality and lender appetite. A domestic construction giant is expected to be appointed as main contractor in the near term, with civil works already underway.

Completion is targeted for late 2027, with commercial operations scheduled for Q1 2028. An operator for the facility has yet to be confirmed.

The project reflects Warburg Pincus’s expanding Korean real assets strategy. In 2023, the firm launched a USD 400 million joint venture with Widecreek focused on logistics center development.

Its foray into data centers adds another leg to that diversification push, positioning the private equity giant in one of Asia’s fastest-growing digital infrastructure markets.

A senior market participant noted: “Warburg Pincus is securing exclusive local partners across asset classes—multifamily, logistics, and now data centers—while putting in significant equity upfront. That makes PF syndication smoother and gives lenders comfort on execution.”