GNC Energy has signed a 75.5 billion won generator supply contract with KT for the Gunsan AI Data Center. This is a large-scale order equivalent to 28.75% of the company's projected consolidated revenue for 2025, drawing attention to GNC Energy's ongoing streak of securing generator contracts related to AI data centers.

Contract Overview

According to a Korea Exchange filing, GNC Energy signed a supply contract with KT for the 'SGC AI Infra Gunsan Data Center generators.' The key details are as follows:

• Contract Amount: 75,508,619,091 won (excluding VAT)
• Revenue Ratio: 28.75% of the consolidated revenue of 262,633,597,538 won based on the 2025 year-end financial statements
• Counterparty: KT
• Supply Region: Domestic (South Korea)
• Contract Period: July 31, 2026 – December 31, 2027

The contract price will be paid in installments, starting with a 5% down payment, followed by interim payments of 15%, 20%, 30%, and 20%, and a final 10% balance payment. The supply will involve a combination of in-house and outsourced production. However, the contract scale and schedule may change during the course of the project.

Background of the Gunsan AI Data Center Project

This contract is linked to the Gunsan AI Data Center project in North Jeolla Province, spearheaded by SGC Energy in partnership with KT and Mirae Asset Securities. According to a report by Hankyung, SGC Energy plans to construct the AI data center on a site of approximately 115,000 square meters within the Gunsan National Industrial Complex 2.

• Phase 1: 40MW capacity, targeting operation in Q1 2028
• Ultimate Goal: Phased expansion to a final capacity of 300MW

SGC Energy previously decided in April to invest 25 billion won in 'SGC AI Infra,' the entity responsible for the Phase 1 project. SGC AI Infra, which appears in the name of this contract, is a corporate entity established for the Phase 1 development of the Gunsan AI Data Center.

Past Supply Track Record and Recent Order Status

GNC Energy has a track record of supplying emergency power generation facilities for data centers and computing centers. According to the company's official website, it has supplied equipment to facilities including the LG CNS Pacific Jukjeon Data Center, Naver Sejong Data Center, KT Cloud Gyeongbuk Center, Aegis Hanam Data Center, and DL E&C Gasan Center.

Notably, the company recently signed a 33.17 billion won generator supply contract with Samsung C&T for the Yongin Deokseong AI Data Center. According to a Hankyung report citing the regulatory filing, that contract amounts to 12.6% of the projected 2025 consolidated revenue, with a contract period running from July 15, 2026, to March 31, 2028.

Combined, the Gunsan and Yongin contracts total approximately 108.68 billion won.

Revenue Recognition and Future Checkpoints

However, the two contracts have different clients and delivery schedules, meaning the full contract amounts will not be recognized as revenue all at once in a single quarter. Since the payment structure involves receiving the down payment and interim payments in stages, actual revenue is likely to be recognized over multiple quarters depending on the progress of manufacturing, installation, and inspection.

• Gunsan Contract: Proceeding through the end of 2027
• Yongin Contract: Proceeding through March 2028

Therefore, beyond the expansion in order volume, it is necessary to simultaneously monitor the pace of quarterly revenue recognition, cost structure, and the proportion of outsourced production.

In AI data centers, emergency generators are essential devices that supply power to core facilities such as servers and cooling equipment in the event of a commercial power outage. Since even a brief power outage at a data center can lead to service disruptions, emergency power facilities are essential. GNC Energy provides diesel, gas, and gas turbine power generation solutions for environments requiring continuous power supply, such as data centers and industrial facilities.

Variables Determining Profitability

The key focus of this contract is not only the 75.5 billion won order value but also the execution process. Given the parallel use of in-house and outsourced production, the ability to fulfill a large-scale contract on schedule—including production capacity, outsourcing management, and cost control—may dictate profitability.

Even if the contract amount reaches 28.75% of recent revenue, it does not necessarily translate into a proportional increase in operating profit. The actual profit contribution will vary depending on the costs of generators and auxiliary equipment, installation costs, outsourcing expenses, and delivery schedules.

By securing the Gunsan AI Data Center generator contract following the Yongin contract, GNC Energy continues its streak of winning large-scale data center orders. Going forward, key areas to monitor include the quarterly revenue recognition of contract payments, growth in the order backlog, and changes in the operating margin.

[※ This article is reference content produced with partial AI assistance. While it has been written based on reliable sources for informational accuracy, final judgment and responsibility lie with the reader.]