SK Telecom has unveiled its ambition to become an "Asia AI infrastructure hub" by building an artificial intelligence data center (AIDC) of up to 15 gigawatts (GW). The plan aims to preemptively build domestic AI computing infrastructure in step with the government's goal of becoming one of the world's top three AI powers.
According to the telecommunications industry, SKT Chief Executive Jung Jae-hyun announced at the National Report Meeting on the Advanced Industry Development Vision for the Yeongnam Region on the 3rd that the company will expand and build the Ulsan AI data center to gigawatt scale, gradually operating 5GW in 2029 and expanding to a total of 15GW by 2035.
Starting with the first AI data center under construction in Ulsan, the company will build a cluster of more than 2GW across the entire Yeongnam region, using it as a base to attract global big tech's AI infrastructure demand to Korea. In addition, including an additional 1GW build in the southwestern region, the company plans to gradually open 5GW of AI data centers in Korea starting in 2029. SK is already constructing a hyperscale AI data center in Ulsan together with Amazon Web Services (AWS), targeting operation in the second half of 2027.
Due to recent high-performance AI computing infrastructure construction and rising memory prices, building a typical 1GW-class AI data center requires project costs reaching about 70 trillion won. In response, SKT plans to raise project funds through strategic partner investment, long-term contracts with customers, and project financing, in addition to its own investment.
In this process, SK Group will concentrate the AI infrastructure capabilities of each affiliate, including semiconductors, energy solutions, and data center construction and operation capabilities. In particular, SKT will play a central role as an "AI infrastructure architect," overseeing the design, construction, and operation of AI data centers.
The backdrop to SKT undertaking such large-cost AI data center construction is a global supply shortage. According to global consulting firm McKinsey & Company, while global data center demand grows 19 to 22 percent each year, supply cannot keep pace, projecting a supply shortage of about 15GW in the United States alone by 2030.
"This AI data center construction is intended to preemptively prepare the computing infrastructure that the global AI ecosystem needs," Jung said. "We will work closely with the government, industry, and local communities to contribute to South Korea growing into a key AI infrastructure hub in Asia."
