SK Telecom announced plans to develop up to 15GW of AI data center capacity in Korea, positioning the country as an Asia
SK Telecom announced today that it will pursue the construction of an AI data center with a scale of up to 15GW, aiming to become an AI infrastructure hub in Asia. The move is intended to preemptively build domestic AI computing infrastructure at a time when demand for AI model training and inference is surging and high-performance computing infrastructure determines national competitiveness.
SKT is pursuing the project by linking it with the government's AI G3 strategy, the goal of becoming one of the world's three leading AI powers alongside the U.S. and China, and the task of balanced regional development. The company is comprehensively reviewing core infrastructure elements such as power, siting, and operations for the AI data center.
Constructing a typical 1GW-class AI data center may require a substantial project cost reaching approximately 70 trillion Korean won. Such costs are expected to be financed through the company's own investment, strategic partner investment, long-term customer contracts, and project financing.
The backdrop to SKT's move is a global supply shortage. McKinsey & Company forecasts that global data center demand will grow 19 to 22 percent annually while supply fails to keep pace, resulting in an estimated shortfall of about 15GW in the U.S. alone by 2030. Global big tech companies are expanding data center investment beyond the U.S. to locations around the world, and Korea is drawing attention as an investment destination for AI data centers.
Korea holds strong competitiveness in core AI components such as high-bandwidth memory. It also has stable power supply conditions based on nuclear power and liquefied natural gas, along with GW-class infrastructure operating capabilities accumulated through operating semiconductor fabs, making it an attractive location for AI data centers.
Based on this demand and locational advantages, SKT plans to build AI data center capacity totaling 15GW. Starting with the AI data center currently under construction in Ulsan, SKT will build a cluster of over 2GW across the southeastern region, using it as a base to attract AI infrastructure demand from global big tech companies to Korea. It also plans to build an additional 1GW in the southwestern region, bringing domestic AI data center capacity to a total of 5GW to be opened in stages starting in 2029.
SK Group already holds core capabilities across its affiliates in semiconductors, energy solutions, and data center construction and operation. SKT will take on the central role of leading the design, construction, and operation of the AI data centers. SKT announced plans to operate an AI Factory, described as a next-generation AI data center, beginning operations in 2027 and expanding to GW scale going forward.
SKT views AI data centers as Korea's third innovative infrastructure, following the Gyeongbu Expressway in 1968 and high-speed internet in 1998. According to Jung Jai-hun, President and CEO of SKT, the project is aimed at preemptively preparing the computing infrastructure that the global AI ecosystem needs. He stated that SKT will work closely with the government, industry, and local communities to help Korea grow into Asia's core AI infrastructure hub.