SK Telecom targets 15 GW AI data center capacity by 2035

SK Telecom said Sunday it plans to build a nationwide network of artificial intelligence data centers in Korea, betting that demand for AI computing power will continue to outstrip supply. The project will begin in Ulsan, where the company is building its first AI data center. SK Telecom plans to use the site as the base for a larger cluster across the Yeongnam region — which includes Busan, Ulsan and Daegu, and the North and South Gyeongsang provinces — with capacity eventually exceeding 2 GW. It also plans to build 1 GW of capacity in the southwestern region. The company aims to bring 5 GW of AI data center capacity online in Korea in phases from 2029, before expanding the total to 15 GW by 2035. The plan comes as companies around the world race to secure computing infrastructure for training and running large AI models, a market increasingly constrained by power, chips and available data center space. SK Telecom said Korea has several advantages in that race, including its high-bandwidth memory chip supply chain, access to nuclear and liquefied natural gas-based power, and experience operating large-scale semiconductor manufacturing facilities. SK Group affiliates will take part in the project across chips, energy, construction and operations. SK Telecom will oversee the overall design, development and operation of the facilities. The company has been expanding its AI infrastructure business through partnerships with Amazon Web Services and Nvidia. In Ulsan, SK Telecom is working with AWS on a hyperscale AI data center scheduled to begin operations in the second half of next year. It is also considering expanding the site to more than 1 GW over the longer term. The company has also unveiled plans with Nvidia to operate an “AI factory,” a next-generation data center designed to handle advanced AI workloads. SK Telecom said the data center buildout could help position Korea as a major AI infrastructure hub in Asia, while also creating new growth opportunities for regions outside the Seoul metropolitan area. “This AI data center project is aimed at preemptively preparing the computing infrastructure that the global AI ecosystem needs,” said SK Telecom CEO Jung Jai-hun. “We will work closely with the government, industry and local communities to help Korea grow into Asia’s core AI infrastructure hub.