SK, AWS break ground for AI data center in Ulsan

SK Telecom CEO Ryu Young-sang speaks during a groundbreaking ceremony for SK AI Data Center at the site in southern Ulsan, Friday. Courtesy of SK Telecom

ULSAN — SK Group kicked off the construction of an artificial intelligence (AI) data center in Ulsan, set to be the largest AI data center outside the Seoul metropolitan area, in partnership with Amazon Web Services (AWS).

SK Telecom, SK ecoplant, AWS and the city government of Ulsan on Friday held a groundbreaking ceremony for SK AI Data Center Ulsan. SK SUPEX Council Chair Chey Chang-won, SK Telecom CEO Ryu Young-sang, SK ecoplant CEO Kim Hyung-keun, Ulsan Mayor Kim Doo-kwan and more than 200 officials attended the ceremony.

SK Group inked a partnership with AWS in June to build the hyperscale data center, designed to meet world-class standards in AI computing architecture. It will be equipped with ultra-high rack density, hybrid cooling systems combining air and liquid cooling, and robust network infrastructure for high-performance, highly efficient AI workloads.

“(SK AI Data Center Ulsan) is not about just launching a data center business. We are aiming to shape the core foundation of the AI ecosystem,” Chey said during the ceremony at the center’s site in southern Ulsan.

“SK will continue to be a responsible partner, standing with Ulsan and Korea every step of the way on the journey to becoming a global leader in AI.”

The new facility, which is expected to initially open a 40-megawatt center by 2027 and ramp up to 100 megawatts in the following year and a half, will utilize GPU (graphics processing unit)-based high-density servers that consume around 20 to 40 kilowatts of power per server rack, with cooling capacity at 40 to 100 kilowatts per rack. This is four to 10 times the cooling demand of traditional data center racks.

Under the partnership, SK Group will handle the external infrastructure of the facility, setting it up and keeping it running. AWS will be responsible for internal functions such as implementing and operating servers, as well as bringing in and managing customers.

SK Group Chairman Chey Tae-won, center, attends an inauguration ceremony in Ulsan for an artificial intelligence data center, June 20. Korea Times photo by Wang Tae-seok

SK AI Data Center Ulsan is expected to make a major contribution not only to the advancement of Korea’s AI industry but also to revitalizing the regional and national economy, SK Telecom said.

The company aims to establish the data center as a key hub for the nationwide AI highway project, part of a government initiative to build AI infrastructure across Korea, and expand its AI capabilities and global competitiveness.

Ulsan was selected as the location as SK Group has secured reliable energy infrastructure as well as access to efficient gas and power solutions there. The city also offers suitable land for development, proximity to subsea cables and a strong industrial ecosystem, making it the optimal site to support next‑generation AI operations.

“Ulsan, which was once the heart of Korea’s manufacturing sector, is now set to become the driving force behind the shift in industry through the innovation of manufacturing AI. And as a cornerstone of the country’s AI highway, SK AI Data Center Ulsan will be key infrastructure in Korea’s rise as a top-three global AI powerhouse,” Ryu said.

“As we launch this data center, with keen interest and participation from global companies, Korea can position itself as the hub for AI in the Asia-Pacific region.”

A photo of SK Multi Utility's liquified natural gas combined cycle power plant in southern Ulsan / Courtesy of SK Telecom

The initiative is expected to generate strong synergy through participation from SK Group’s major affiliates, including SK Telecom, SK Broadband, SK ecoplant, SK Chemicals, SK Multi Utility, SK gas and SK hynix.

SK ecoplant will carry out the construction process, from reviewing optimal construction methods to developing installation strategies for core systems and an efficient cooling system, while SK Multi Utility will be responsible for powering the center. Located adjacent to the upcoming facility, SK Multi Utility’s 300-megawatt liquefied natural gas combined cycle power plant will act as a reliable, cost-saving and eco-friendly power supply for the data center.

Since identifying AI as a source for its “fourth quantum leap,” SK has been strategizing to integrate AI across its affiliates, building AI data centers and developing AI agents, robotics, manufacturing AI, energy and AI-driven bio solutions. The group plans to expand the Ulsan data center to a gigabyte-scale facility in the coming years.