SK Telecom Unveils 140 Trillion Won AI Data Center Plan for South Korea

SK Telecom unveiled a 140 trillion won AI data center investment plan for South Korea's Yeongnam region on the 3rd, starting with an AWS partnership facility in Ulsan targeting second half of 2027 operation. The telecommunications company will develop a 2GW+ AI data center cluster in Yeongnam, expanding to 5GW nationally from 2029 and potentially reaching 15GW by 2035. The investment responds to surging global AI computing demand and data center supply shortages, with SK Telecom positioning South Korea as an Asian AI infrastructure hub leveraging the country's HBM semiconductor supply chain, nuclear and LNG power infrastructure, and semiconductor fabrication expertise.

SK Telecom Targets 140 Trillion Won Investment in Yeongnam Region

SK Telecom announced on the 5th that it will create an AI data center cluster of 2GW or more in the Yeongnam region starting with Ulsan, expanding this to a nationwide AI data center construction plan of up to 15GW by 2035. The 140 trillion won investment plan for Yeongnam region is based on the estimate that approximately 70 trillion won in project costs is typically required to build a 1GW-class AI data center, reflecting the company's plan to create a cluster of 2GW or more. SK Telecom will take on the role of 'AI infrastructure architect' overseeing the design, construction, and operation of AI data centers throughout this process.

Ulsan AWS Data Center Anchors Initial Development Phase

SK Telecom will use its first AI data center being built in Ulsan as a base. This center is a hyperscale-class AI data center being constructed together with Amazon Web Services (AWS), targeting operation in the second half of 2027. The core focus is equipping power supply and cooling systems necessary for operating high-density AI servers to meet AWS's technical requirements. The Yeongnam region cluster will go one step further to serve as a hub for attracting global big tech AI computing demand to South Korea.

SK Telecom Plans 5GW Expansion from 2029

SK Telecom plans to build 2GW or more in the Yeongnam region including Ulsan, add an additional 1GW construction in the southwestern region, and gradually open 5GW of AI data centers domestically from 2029. The plan is to expand to 15GW by 2035 depending on demand and investment conditions.

Power Supply and Anchor Tenants Identified as Critical Factors

The key variables are power and customers. AI data centers use overwhelmingly more power than general data centers and face greater burdens for cooling, power transmission, and site securing. For this reason, site selection, power supply and demand, and securing anchor tenants as long-term contract customers are core variables. SK Telecom stated it will combine not only its own investment but also strategic partner investment, long-term customer contracts, and project financing to reduce the initial investment burden.

SK Group Coordinates Cross-Subsidiary AI Infrastructure Strategy

The division of roles at the SK Group level has also become clear. The strategy is to provide 'full-stack AI infrastructure' by combining SK Hynix's high bandwidth memory (HBM) competitiveness, energy affiliates' power and solution capabilities, and SK Telecom's telecommunications network and data center operation experience. SK Telecom has also announced plans to operate the next-generation AI data center 'AI Factory' with NVIDIA, and is expected to grow both the Ulsan data center and AI Factory business together.

South Korea Positioned as Asia AI Infrastructure Hub

The background to SK Telecom's positioning of South Korea as an 'Asia AI infrastructure hub' is the global data center supply shortage. As demand for AI model training and inference surges, global big tech companies are diversifying data center investment centered on the United States to Asia and Europe. SK Telecom's judgment is that South Korea has locational competitiveness as it has an AI semiconductor supply chain including HBM, a nuclear and LNG-based power system, and semiconductor fab operation experience.

SK Telecom CEO Jung Jae-heon stated, "This AI data center construction is to proactively prepare the computing infrastructure needed by the global AI ecosystem," adding, "We will work closely with the government, industry, and local communities to contribute to South Korea's growth as a core AI infrastructure hub in Asia."

FAQ

What is the scale of SK Telecom's AI data center investment plan announced on the 3rd?

SK Telecom announced a 140 trillion won investment plan for the Yeongnam region to build an AI data center cluster of 2GW or more. The investment estimate is based on approximately 70 trillion won in project costs typically required for a 1GW-class AI data center. The company plans to expand this to a nationwide 15GW capacity by 2035.

When will SK Telecom's Ulsan AWS data center begin operation?

The Ulsan AI data center being constructed in partnership with Amazon Web Services (AWS) targets operation in the second half of 2027. This hyperscale-class facility will serve as the foundation for SK Telecom's broader AI data center cluster development in the Yeongnam region, with 5GW of domestic capacity planned to open gradually from 2029.

Why is SK Telecom positioning South Korea as an Asia AI infrastructure hub?

SK Telecom cites global data center supply shortages as global big tech companies diversify AI computing infrastructure beyond the United States to Asia and Europe. The company identifies South Korea's competitive advantages as its AI semiconductor supply chain including HBM, nuclear and LNG-based power infrastructure, and semiconductor fabrication operation experience.