SK Telecom is pushing to build an artificial intelligence (AI) data center of up to 15GW. As demand for AI model training and inference surges, the company aims to secure an ultra-large AI computing infrastructure in Korea ahead of others and make Korea an Asian AI infrastructure hub.
SK Telecom said on the 5th it will pursue the construction of a nationwide AI data center network by linking the government's "AI top 3" strategy with regional balanced development tasks. The AI top 3 refers to the government's goal of joining the United States and China as one of the world's three leading AI powers. SK Telecom plans to expand the project in stages after a comprehensive review of power supply, sites, operating systems, and securing key customers.
◇ 1GW-class costs 70 trillion won… securing power and capital is key
AI data centers are ultra-large infrastructure that require massive power and capital. According to SK Telecom, considering the construction of high-performance AI computing infrastructure and rising memory prices, a 1GW-class AI data center typically requires about 70 trillion won in project costs. Funding options under review include not only self-investment but also strategic partner investment, long-term contracts with customers, and project financing.
Behind SK Telecom's large-scale investment plan is a global shortage of AI data center supply. Demand for data centers is rising rapidly due to the spread of Generative AI, but supply is not keeping pace because of issues in securing power, sites, cooling systems, and semiconductors. That is why global Big Tech companies are expanding data center investments beyond the United States to locations around the world.
SK Telecom believes Korea is competitive as a location for AI data centers. Korea has strengths in key AI component fields such as high bandwidth memory (HBM), and it has stable power supply conditions based on nuclear power and liquefied natural gas (LNG). Its experience managing large-scale infrastructure accumulated through operating semiconductor production facilities is also cited as a strength.
◇ First step in Ulsan… to expand to 5GW in 2029 and 15GW in 2035
The first hub is Ulsan. SK Telecom plans to create an AI data center cluster of more than 2GW in the Yeongnam region, based on the first AI data center under construction in Ulsan. Including an additional 1GW in the southwest region, the company will push to gradually operate a total of 5GW of AI data centers in Korea starting in 2029. It aims to expand the total capacity to 15GW by 2035, taking into account demand and investment conditions.
This project will bring together SK Group's AI infrastructure capabilities. Building AI data centers requires semiconductors, energy solutions, construction, and operational capabilities. SK Telecom will serve as the "AI infrastructure architect" in this process, overseeing the design, construction, and operation of data centers. The strategy is to combine the group's semiconductor, energy, and construction capabilities to establish a full-stack AI infrastructure system.
SK Telecom is already expanding AI data center cooperation with global corporations. In Ulsan, it is building a hyperscale AI data center with Amazon Web Services (AWS), targeting operation in the second half of 2027. The center will feature cooling and power systems specialized for AI computation. With Nvidia, the company is pursuing the operation of an "AI factory," a next-generation AI data center. SK Telecom plans to start operating the AI factory in 2027 and expand it to the gigawatt scale.
SK Telecom views AI data centers as Korea's next-generation national infrastructure. Just as the Gyeongbu Expressway formed the foundation of industrialization and high-speed internet became the base of the digital economy, the company believes AI data centers can be the core growth base of the AI era. Linking large-scale data centers with regional industries can increase utilization of local power and industrial sites and contribute to revitalizing regional economies.
Jung Jai-hun, CEO of SK Telecom, said, "This is a project to proactively prepare the computing infrastructure required by the global AI ecosystem," adding, "We will work with the government, industry, and local communities to help Korea grow into Asia's key AI infrastructure hub."