SK Telecom Announces Major AI Infrastructure Expansion

SK Telecom reveals its ambitious plans for the establishment of 15 gigawatts (GW) of AI data centers in South Korea in the coming years. It aims at boosting the computational strength in the nation along with making sure that South Korea comes into prominence as an important part of the AI ecosystem in Asia. The plan will be carried out in stages, with the first stage being the construction of the AI data center in Ulsan.

Initial Rollout Targets 5GW by 2029

In the first stage of the venture, the goal is to have 5GW of AI data center capacity operational from 2029 onwards. The Ulsan data center will form the base for a bigger AI data infrastructure cluster which will be more than 2GW in the southeastern part of South Korea. SK Telecom has also set out to build another 1GW facility in the Jeolla region located in the southwestern part of South Korea as a part of the first stage.

Leveraging SK Group's Technology Ecosystem

The big project will be a combination of many SK Group companies' strengths. As per the company, there are three main factors that determine the success of developing AI data centers. These are modern semiconductors, energy solutions, and knowledge about how to build and manage the data centers. While all the SK Group affiliates will bring their own technologies, SK Telecom will coordinate the whole process of planning and running the facilities.

AI Factory to Launch Before Large-Scale Expansion

Prior to the nationwide rollout, SK Telecom intends to establish an AI Factory in 2027. The establishment will be seen as a new-age AI data center that will provide support for the provision of AI cloud services and other computing tasks.

Funding Strategy and Long-Term Vision

Creating such data centers entails substantial financial commitment. As explained by SK Telecom, the financing will be sourced from the company’s finances, its strategic partners’ investments, customer contracts, and project financing. It is projected that the construction of just one AI data center at a capacity of 1GW can entail investments of about KRW 70 trillion.

Supporting South Korea's AI Ambitions

This move fits into the overall plan of South Korea to be among the global leaders in AI through the AI G3 program. With the significant boost in domestic computing capability through AI, SK Telecom anticipates that this project will aid in developing the digital infrastructure of the country, spur regional economic growth, and meet the increasing demands for AI services from the industry. This program is being developed as a national-level infrastructure project akin to previous successes in South Korea’s industrialization process.