SK Telecom Plans 15GW AI Data Center Program to Establish Korea as Regional Hub

SK Telecom announced in a press release that it will pursue the construction of AI data centers with a total capacity of up to 15 gigawatts. The initiative aims to position South Korea as an AI infrastructure hub in Asia and support the government's AI G3 strategy to become one of the top three global AI powers.

The project will begin with the AI data center under construction in Ulsan, which will expand to cluster more than 2 gigawatts across the Gyeongsang region. An additional 1 gigawatt is planned for the Jeolla region, bringing total domestic capacity to about 5 gigawatts by 2029. Full capacity is targeted to reach 15 gigawatts as the program progresses.

The cost of building a typical 1 gigawatt AI data center is estimated at around 70 trillion Korean won. Financing will come from SK Telecom's own funds, strategic partner investment, long term customer contracts, and project financing. The company plans to consider power supply, site selection, and anchor tenant arrangements in coordination with national and regional development efforts.

SK Group will integrate the expertise of its affiliates in semiconductors, energy solutions, and data center operations. SK Telecom will lead the overall design, construction, and operation. The company also expects to begin operations of its AI Factory in 2027 and gradually scale it to gigawatt capacity.

According to SK Telecom CEO Jung Jai-hun, the 15 gigawatt program represents a step toward creating Korea's next major national infrastructure, following the expressway and high speed internet networks. The company intends to work with government and industry to advance the country's position as a key AI infrastructure hub for Asia.