Why did NHN self-build data center?

Recently, NHN completed its own data center "Gak" in Chuncheon and started full-scale operation.

Although foreign internet enterprises such as google, facebook, and yahoo possess self data center, NHN is the first internet service company who directly construct and operate the data center in Korea.

Through "Gak", NHN provides naver service and mobile messenger line. NHN announced that "Gak" got the "Platinum" level, the top level of LEED certification for the very first time in the world.

LEED (Leadership in Energy and Environmental Design) is the international green building certification.

According to US GBC, the evaluating institute for LEED, annual energy cost of NHN data center seems to be reduced by 73.8 % and its use of water resources by 69.1% in comparison with previous IDC.

NHN also developed IT infrastructure such as server and Rack alongside establishment of "Gak". it is aimed at minimize the use of electricity.

NHN stressed that while there is no power supply in Gak's server, it is constructed to provide the power directly from rack.

The web service company such as google and facebook have already developed their own servers. AS they produce on a large scale, the price is reduced a lot than purchasing the server from outside the company.

In fact, it is difficult for NHN to greatly lower the cost of purchasing because it doesn't produce on such a large scale as facebook does.

Nevertheless, this move of NHN should be noted because it can become a pioneer setting the new trend to self develop a hardware necessary for the data center in Korea.

It is predictable enough that Daum communication, Korea's second portal, also builds its own data center in Jeju island following NHN.

As google and facebook self build the server, the world market of x86 server faced a huge challenge. Research results frequently show that server enterprises such as HP and Dell are hit by some big internet service enterprises self building their own servers.