Key facts
- SK Telecom will invest 140 trillion won ($91.5 billion) to build AI data centers in the Yeongnam region.
- The plan includes constructing a 100-megawatt hyperscale AI data center in Ulsan.
- SKT aims to expand its total AI data center capacity to 5 gigawatts by 2029.
- The company's long-term goal is to build 15 gigawatts of data centers across South Korea.
- The initiative is part of a government megaproject to attract investment in AI and high-tech industries.
South Korea's SK Telecom Co. (SKT) announced on Friday its intention to invest 140 trillion won (approximately $91.5 billion) to establish massive artificial intelligence (AI) data centers in the southeastern Yeongnam region, aiming to transform it into an AI hub for Asia.
Jung Jai-hun, CEO of SKT, detailed the plan during a public briefing in Jinju, which was presided over by President Lee Jae Myung. This initiative is part of a broader government strategy to attract significant investments in AI and advanced technology sectors.
The plan includes the construction of a 100-megawatt hyperscale AI data center in the port city of Ulsan, with operations expected to commence by the fourth quarter of the following year. Subsequently, SKT intends to add 900 megawatts and an additional 1 gigawatt of AI data center capacity in areas surrounding Ulsan.
Jung highlighted that these large-scale AI data centers, combined with the region's existing manufacturing capabilities, could foster a hub for the verification and expansion of manufacturing AI. SKT's ambition extends to increasing its total AI data center capacity to 5 gigawatts by 2029, marking the initial phase of a long-term objective to develop 15 gigawatts of data center capacity nationwide.
The initial 5-gigawatt deployment is projected to require approximately 2,500,000 square meters of land, around 3 million graphic processing units (GPUs), 2.4 million high-bandwidth memory (HBM) chips, and an estimated 350 trillion won in investment.