SK Telecom to open AI data center with Nvidia GPU

SK Telecom CEO Ryu Young-sang, left, poses with Lambda CEO Stephen Balaban during their meeting at Lambda's headquarters in California in January in this handout photo released Wednesday. Courtesy of SK Telecom

SK Telecom said Wednesday it will open an artificial intelligence (AI) data center powered by Nvidia’s advanced graphics processing unit (GPU) in southwestern Seoul in December as part of a partnership with the U.S.-based GPU cloud firm Lambda.

According to the mobile carrier, the two sides signed a partnership regarding AI cloud service through which they will strategically cooperate to expand the GPU-as-a-service (GPUaaS) business and establish Lambda’s footing in Korea.

Lambda was established in 2012 as a GPUaaS company using the latest processors supplied by Nvidia. GPUaaS is a service that helps corporate clients rent GPU resources through the cloud instead of purchasing costly chipsets. This is gaining popularity among large companies or startups that face challenges in purchasing GPUs due to high costs and limited supply.

Under the partnership, the two companies will deploy Nvidia’s H100 processors at SK Broadband’s data center in Geumcheon District, Seoul, and plan to deploy thousands of GPUs, including the latest H200 processors, within the next three years.

Through this move, SK Telecom said it plans to set up Korea’s largest GPU farm powered only by Nvidia’s GPUs. SK Broadband is SK Telecom’s subsidiary.

The data center will also serve as Lambda’s regional base in Korea, meaning that the data of domestic companies using Lambda’s service will be stored in servers at the center.

Assisted by Lambda’s GPU resources, SK Telecom said it will launch a subscription-type GPUaaS in December, to leverage the sharp growth in the global GPUaaS market.

According to market tracker Fortune Business Insights, the global GPUaaS market will grow to $49.84 billion in 2032 from $4.31 billion in 2024, with its compound annual growth rate reaching 35.8 percent.

Lambda CEO Stephen Balaban said the two companies share a common vision: to make GPU computing resources as convenient as electricity. Additionally, he said that Lambda is excited to collaborate with SK Telecom to grow the AI cloud sector in Korea, where AI innovation is rapidly advancing.

“Securing a stable supply of GPUs through our strategic partnership with Lambda is highly significant for expanding GPU supply in Korea,” an SK Telecom official said.

“We will work to establish the largest GPU farm in the country, so that we can make forays into the global market as well as contributing to Korea’s national AI competitiveness.”