SK Telecom plans 15GW AI data center buildout across Korea by 2035
Nationwide buildout to strengthen Korea's position as Asia's AI infrastructure hub
SK Telecom CEO Jung Jai-hun speaks during a briefing in Jinju, South Gyeongsang Province, Friday, to unveil a package of investments as part of the company's follow-up plan for the government's megaprojects. Courtesy of SK Telecom
SK Telecom on Sunday announced its plan to develop up to 15 gigawatts of artificial intelligence (AI) data center capacity nationwide, aiming to position Korea as a leading AI infrastructure hub in Asia.
The initiative comes as surging demand for AI model training and inference is driving an unprecedented need for high-performance computing infrastructure. The company said it will advance the project in alignment with the government’s AI G3 goal, reviewing power, site and operational requirements.
"The AI data center initiative is designed to proactively prepare the computing infrastructure needed for the global AI ecosystem," SK Telecom CEO Jung Jai-hun said.
"We will work closely with the government, industry and local communities to help establish Korea as Asia's leading AI infrastructure hub."
The telecom will take a phased approach, beginning with its first AI data center in Ulsan, currently under construction, and expanding into a broader cluster exceeding 2 gigawatts across the southeastern region. It aims to use the cluster as a foothold to attract global tech giants seeking to diversify AI infrastructure beyond the United States.
SK Telecom also plans to develop an additional 1 gigawatt capacity in the southwestern region. Combined, these projects are expected to bring total domestic capacity to around 5 gigawatts, with phased operations beginning in 2029.
In the long term, the company expects to scale up capacity to 15 gigawatts by 2035, pacing investment with demand and financing conditions to limit upfront costs and risks.
A rendering of SK Group's data center in Ulsan / Courtesy of SK Group
Building AI data centers at a gigawatt scale requires massive capital due to the high cost of computing infrastructure and advanced memory.
The company estimates that each 1 gigawatt of capacity will require about 70 trillion won ($45.8 billion), with funding coming from a combination of internal investment, strategic partners, long-term customer commitments and project financing.
SK Telecom said the project will draw on capabilities across SK Group affiliates, including semiconductors, energy solutions, engineering and data center operations, while it will serve as the central orchestrator, overseeing design, construction and operations.
The company has already been collaborating with leading global tech firms such as Amazon Web Services (AWS) and Nvidia.
In Ulsan, it is building a hyperscale AI data center with AWS, scheduled to begin operations in the second half of 2027. The facility will incorporate advanced cooling and power systems to meet the cloud provider's technical requirements for AI workloads.
Recently, the company also announced plans to operate an AI factory, a next-generation AI data center model, with Nvidia. Operations are set to begin in 2027, with plans to scale up to gigawatt capacity.
The planned 15-gigawatt buildout is expected to serve as a foundation for Korea’s push to become an AI infrastructure hub.
SK Telecom said it views AI data centers as the country’s third major infrastructure milestone, following the expressway in 1968 and high-speed internet in 1998, and aims to play a leading role in driving that development.