SK Telecom Establishes SK Hyper Subsidiary for 15GW AI Data Center Expansion

SK Telecom established a new subsidiary, SK Hyper, following a board decision on the 23rd to accelerate its AI data center business. The South Korean telecom operator approved an investment of 750 billion won through 2030 to build business foundations for the new entity. SK Hyper, wholly owned by SK Telecom, will focus on business development to construct 15 gigawatts (GW) of AI data center capacity in the mid-to-long term. The subsidiary's name reflects the company's ambition to expand AI DC operations at hyperscale speed, as part of SK Group's broader strategy to establish an Asian AI infrastructure hub.

SK Telecom Commits 750 Billion Won Investment Through 2030

SK Telecom will inject capital into SK Hyper incrementally through 2030 within the approved total investment ceiling. The subsidiary will handle site acquisition, substation construction and operation, customer acquisition, and commercialization for AI data centers. SK Hyper's responsibilities include securing land for AI DC facilities, building and operating electrical substations, and driving business development to attract clients.

SK Hyper Targets 5GW Capacity by 2029 in Phased Rollout

SK Telecom set a first-phase goal of opening 5GW of AI data center capacity by 2029 in stages. The company plans to sequentially expand to a total of 15GW by 2035, subject to market demand. The rollout will begin with a GW-scale cluster in Ulsan, followed by additional GW-scale AI data centers in the Chungcheong region and southwestern areas, establishing AI infrastructure across multiple regions.

Jeong Seok-geun Appointed as SK Hyper CEO

Jeong Seok-geun, SK Telecom's CIC head, was named the inaugural CEO of SK Hyper. Jeong also serves concurrently as head of SK Telecom's AI DC Integrated Promotion Division. Jeong stated that SK Hyper will materialize SK Group's vision of an Asian AI infrastructure hub through systematic and rapid execution. He added that the subsidiary will secure core infrastructure and customers to contribute to South Korea's advancement as a top-three AI powerhouse.