The largest artificial intelligence (AI) data center in Korea has broken ground. This data center, built jointly by SK Group and Amazon Web Services (AWS), will invest more than 7 trillion won by 2029 and has a power capacity of 103 megawatts (MW), classifying it as a 'hyperscale' facility (over 50 MW).
SK Telecom and SK ecoplant held a groundbreaking ceremony for 'SK AI Data Center Ulsan' on the 29th in collaboration with AWS and Ulsan Metropolitan City. Notable attendees included ▲Chairman Choi Chang-won of SK SUPEX Council ▲President Ryu Young-sang of SK Telecom ▲President Kim Hyung-geun of SK ecoplant, along with about 200 officials including ▲Kim Du-gyeom, the mayor of Ulsan Metropolitan City, and ▲Shin Jae-won, executive director of AWS Korea, who pledged their commitment to building a successful AI data center.
Chairman Choi Chang-won of the SK SUPEX Council stated in his speech, "The 'SK AI Data Center Ulsan' we are starting construction on is not merely a building, but a crucial infrastructure that will establish the foundation of Korea's digital economy and build the future." He added, "SK will participate as a responsible partner, accompanying Ulsan and Korea on the journey to becoming an AI powerhouse until the end."
The establishment of the largest AI-exclusive data center outside of the capital region is seen as a reflection of Chairman Chey Tae-won's determination. Chairman Chey views this data center project as an opportunity for the group to achieve its fourth quantum leap, following energy, information communication, and semiconductors. In June, he directly signed the 'SK-AWS Ulsan AI Data Center Construction Contract.'
Last June, Chairman Chey met for the first time with Andy Jassy, Amazon's chief executive officer (CEO), to introduce the capabilities of SK Group, paving the way for this project. At that time, he emphasized, "SK is a rarity in the world, capable of operations from semiconductors to energy, construction, and operation of data centers and service development," and added, "We can be the ideal partner for the AI-exclusive data center that AWS aims to establish in Northeast Asia." Subsequently, Chairman Chey met CEO Jassy two more times to discuss collaboration plans, while SK executives also held about 30 meetings in various formats, including face-to-face and video calls, until May this year to finalize this project.
◇SK Telecom secures future 'GW-class' data center facilities in Ulsan
'SK AI Data Center Ulsan' will begin construction work following the groundbreaking ceremony held today. The goal is to operate 41 MW first by November 2027, with the entire facility of 103 MW expected to be operational by February 2029.
This facility will be established by acquiring the SK Chemicals site near the Ulsan National Industrial Complex by SK Broadband. SK Group and AWS plan to secure additional facilities near the Ulsan National Industrial Complex to build future GW-class AI data center infrastructure.
To materialize this, SK Telecom signed a memorandum of understanding (MOU) with Ulsan Metropolitan City during the event to expand the hyperscale AI data center into a future GW-class AI data center cluster. Along with this, they agreed to work together on 'revitalization of the local economy through AI data center construction and attracting clients' and 'job creation cooperation.'
AI data centers must have high power, cooling, and network facilities for high-performance AI computing. They consume over 20-40 kW of power per server rack (a frame that can safely store multiple server devices in a standardized way within a data center, with an average power consumption of 5-10 kW per rack in typical data centers). This enables the utilization of high-density graphics processing units (GPUs). Due to the operation of high-performance servers that consume a large amount of power, additional cooling capacity needs to be at least 40-100 kW per server rack, which is 4-10 times higher than that of typical data centers.
'SK AI Data Center Ulsan' is equipped with AI computing-specialized structures and systems and boasts ultra-high-density rack density. Additionally, the application of air-cooled and water-cooled hybrid cooling systems has enhanced energy efficiency. SK Telecom noted, "It has been designed to a global top standard in establishing stable networks, offering higher performance compared to existing data centers."
SK Group has secured energy infrastructure such as a stable gas supply network in Ulsan. In particular, SK Gas owns an LNG terminal and LPG storage facilities in Ulsan Bukshin Port. Based on this, SK Multi-Utility (SK MU) operates a 300 MW LNG combined heat and power plant to supply electricity to SK AI Data Center Ulsan at a cheaper price than Korea Electric Power Corporation. Furthermore, the favorable location for submarine cables allows for it to be evaluated as 'the optimal location' for this AI data center construction.
Through this investment from AWS, SK Group expects to create over 78,000 jobs and generate an economic impact of 25 trillion won over the next 30 years. A spokesperson from SK Telecom stated, "AI Data Center Ulsan is a facility expected to contribute to the development of the domestic AI industry as well as the revitalization of the local and national economy," introducing it as "the key infrastructure that will lead industrial innovation and a manufacturing renaissance in Ulsan, a city centered on manufacturing." They added, "Investments in AI infrastructure are expected to attract related corporations, create new jobs, and improve the industrial structure of the Ulsan region through AI innovations in existing manufacturing, such as AI-based digital twins and smart factories, providing an opportunity for new growth in Ulsan."
Key affiliates of SK Group participating in the establishment of this AI data center include SK Telecom, SK Broadband, SK ecoplant, SK Gas, SK Chemicals, SK Multi-Utility, SK hynix, and SK AX. In particular, SK Telecom has secured a key hub for the 'AI Infrastructure Super Highway' through the 'SK AI Data Center Ulsan.' SK Telecom is pursuing a strategy to establish a nationwide AI infrastructure centered around three pillars: the AI data center, GPU as a service (GPUaaS), and edge AI.
The infrastructure construction of 'SK AI Data Center Ulsan' is being managed by SK ecoplant. They have conducted systematic preliminary reviews including ▲optimal construction method proposal ▲core equipment construction strategy establishment ▲preliminary infrastructure construction ▲power, air conditioning, and communication stability assurance ▲cooling system efficiency enhancement. They are also working to optimize construction costs and timelines while minimizing risks and delay factors during the execution phase.
A representative from SK ecoplant stated, "Through this project, we plan to solidify our position in the emerging market for AI data center projects and lead the initial market. We will also accelerate the internalization of AI data center solutions based on collaboration with SK Group affiliates to foster AI ecosystems in ICT, semiconductors, and energy."
In his commemorative speech, President Ryu Young-sang of SK Telecom stated, "The construction of 'SK AI Data Center Ulsan' is expected to serve as a focal point for leading innovation in local industries while also providing an opportunity to leap to an AI data center hub in the Asia-Pacific region from a national perspective." He added that it will likely become the starting point for creating a new industrial ecosystem called 'AI DC cluster construction' based on the strategic foundation that Ulsan City and SK Group have collaborated on.
President Kim Hyung-geun of SK ecoplant remarked, "SK ecoplant has secured a distinctive competitive edge in building infrastructure related to semiconductors and AI," and added, "We will make our best efforts not only to fulfill the future growth strategy of SK Group but also to contribute to the national-level 'AI DC cluster construction.'"