SK Telecom announced that it will pursue the construction of an AI data center with a scale of up to 15GW. The goal is 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, comprehensively reviewing core infrastructure elements such as power, siting, and operations for the AI data center.
Ulsan AI Data Center to Expand to GW Scale; 5GW to Be Activated in Stages from 2029, Reaching 15GW in Total
Due to the buildout of high-performance AI computing infrastructure and rising memory prices, constructing a typical 1GW-class AI data center may require a substantial project cost reaching approximately KRW 70 trillion. Such costs are expected to be financed not only through the company’s own investment but also through strategic partner investment, long-term customer contracts, and project financing.
The backdrop to SKT’s move into building an AI data center at this scale is a global supply shortage. Global consulting firm McKinsey & Company forecasts that global data center demand will grow 19–22% annually while supply fails to keep pace, resulting in an estimated shortfall of about 15GW in the U.S. alone by 2030¹
Accordingly, global big tech companies are expanding data center investment beyond the U.S. to locations around the world. In this context, Korea is drawing attention as an investment destination for global big tech companies’ AI data centers.
Korea holds strong competitiveness in core AI components such as high-bandwidth memory (HBM). It also has stable power supply conditions based on nuclear power and liquefied natural gas (LNG), along with GW-class infrastructure operating capabilities accumulated through operating semiconductor fabs, making it an attractive location for AI data centers.
Based on this solid demand and locational advantages, SKT plans to build AI data center capacity totaling 15GW.
First, starting with the AI data center currently under construction in Ulsan, SKT will build a cluster of over 2GW across the southeastern region (Gyeongsang), 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 (Jeolla), bringing its domestic AI data center capacity to a total of 5GW to be opened in stages starting in 2029.
To this end, SKT will pursue AI data center construction by considering various factors together — including site selection, power supply, and securing key anchor tenants — in connection with the government’s balanced regional development tasks and strategic supply plans.
SK Group brings together full-stack AI infrastructure capabilities; SKT to spearhead the overall project as AI Infrastructure Architect
AI data center infrastructure hinges on three core elements:
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Semiconductors -
Energy solutions -
Data center construction and operation capabilities
SK Group already holds these core capabilities across its affiliates. This project will bring together the Group’s full-stack AI infrastructure capabilities, with each affiliate contributing its own strengths.
In particular, SKT will take on the central role of leading the design, construction, and operation of the AI data centers. SKT has already been actively pursuing the AI data center business and has continued its cooperation with global big tech companies²
At SK AI Summit 2025 last November, SKT President and CEO Jung Jai-hun unveiled the company’s AI infrastructure roadmap, stating that SKT would lead the evolution of AI infrastructure as the nation’s leading AI operator. He also presented a longer-term blueprint for expanding cooperation with global big tech companies and scaling up the Ulsan AI Data Center to a total of over 1GW.
More recently, SKT announced plans to operate an “AI Factory,” described as a next-generation AI data center. SKT plans to begin AI Factory operations in 2027 and expand it to GW scale going forward.
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