SK Telecom Pursues 15GW AI Data Center Buildout, Aiming to Become Asia's AI Infrastructure Hub

Rhea-AI Summary

SK Telecom (NYSE: SKM) plans to build up to 15GW of AI data center capacity to position Korea as Asia's AI infrastructure hub. Starting from its Ulsan site, SKT targets 5GW domestic capacity coming online in stages from 2029, then scaling to 15GW overall.

According to SKT, a typical 1GW-class AI data center may cost about KRW 70 trillion, funded through company capital, strategic partners, long-term customer contracts, and project financing. SKT also plans to launch an AI Factory in 2027 and will coordinate full-stack capabilities across SK Group affiliates.

Positive

• Planned buildout of up to 15GW AI data center capacity
• Domestic AI data center capacity of 5GW targeted from 2029
• Ulsan and regional clusters designed to attract global big tech demand
• Funding expected from partners, long-term contracts, and project financing
• AI Factory operations planned from 2027 with expansion to GW scale

Negative

• Typical 1GW AI data center may cost about KRW 70 trillion
• Domestic 5GW capacity not expected to open until 2029 or later

News Market Reaction – SKT

-0.43%

-0.43% Session close to close

In the Jul 6 session, SKT declined 0.43%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The plan to build up to 15GW of AI data center capacity marks a major step beyond earlier AI strateg...

Analysis

The plan to build up to 15GW of AI data center capacity marks a major step beyond earlier AI strategy updates. Investors may track how funding is balanced against existing shelf flexibility and whether execution matches the scale and timing outlined.

Key Figures

Planned AI capacity: 15GW Initial activation: 5GW Ulsan & southeast cluster: over 2GW +5 more

8 metrics

Planned AI capacity 15GW Total AI data center capacity targeted by SKT

Initial activation 5GW Capacity to be activated in stages starting 2029

Ulsan & southeast cluster over 2GW Planned AI data center cluster in southeastern Korea

Southwestern buildout 1GW Additional capacity planned in the Jeolla region

1GW data center cost KRW 70 trillion Approximate project cost for a 1GW-class AI data center

Global demand growth 19–22% annually Forecast growth rate of global data center demand

US capacity shortfall 15GW Estimated data center shortfall in the U.S. by 2030

AI Factory start 2027 Planned start of AI Factory operations

Previous AI Reports

2 past events · Latest: Mar 02 (Positive)

Same Type Pattern 2 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 02	AI partnerships update	Positive	+0.7%	Expanded global AI partnerships and launched Sovereign AI infrastructure package.
Mar 01	AI strategy launch	Positive	+0.1%	CEO outlined AI Native strategy including 1GW-class AIDC and model upgrades.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Across recent AI-tagged announcements, the stock showed consistently modest positive next-day moves.

Key Terms

project financing, high-bandwidth memory, liquefied natural gas, ai data center

4 terms

project financing financial

"financed not only through the company's own investment but also through strategic partner investment, long-term customer contracts, and project financing."

Project financing is a way to fund a single, large project — such as a power plant, toll road, or mine — where lenders and investors look primarily to the project’s future cash flow and assets for repayment rather than the company’s overall balance sheet. It matters to investors because it isolates risk and return: like a mortgage tied to a single house, the project’s performance determines who gets paid and how much, affecting credit risk, expected returns, and how losses are absorbed.

high-bandwidth memory technical

"Korea holds strong competitiveness in core AI components such as high-bandwidth memory (HBM)."

High-bandwidth memory is a type of computer memory designed to move large amounts of data very quickly between memory and processors, like adding many wide lanes to a highway so trucks can deliver more goods at once. For investors, it matters because products that use this memory can handle heavier workloads with lower power use, which can boost competitiveness, increase demand for certain chips, and influence manufacturers’ pricing power and profit margins.

liquefied natural gas technical

"stable power supply conditions based on nuclear power and liquefied natural gas (LNG)"

Liquefied natural gas (LNG) is natural gas that has been cooled into a liquid so it can be shipped and stored more easily—think of it like condensing a bulky gas into a compact, refrigerated form for transport. It matters to investors because LNG supply, shipping capacity, and long-term contracts influence energy prices, company revenues, and exposure to geopolitical or infrastructure risks, much like how a clogged highway can delay deliveries and raise costs.

ai data center technical

"pursue the construction of an AI data center with a scale of up to 15GW."

An AI data center is a specialized facility that houses powerful computers, networking gear, and cooling systems designed specifically to run and store artificial intelligence workloads, like training large models and serving real-time AI applications. Investors care because these centers are capital-intensive infrastructure that enable companies to offer advanced AI services, drive recurring revenue, and create competitive advantages, much like a factory that determines how quickly and cheaply a business can produce its product.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Ulsan AI Data Center to expand to GW scale; 5GW to be activated in stages from 2029, reaching 15GW in total
• SK Group brings together full-stack AI infrastructure capabilities; SKT to spearhead the overall project
• Korea's third national infrastructure revolution following the Gyeongbu Expressway and high-speed internet

SEOUL, Korea, July 5, 2026 /PRNewswire/ -- SK Telecom (NYSE: SKM, hereafter "SKT") today 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 2030.^[1]

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: semiconductors, energy solutions, and 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 companies^[2].  

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.

• Korea's Third National Infrastructure Revolution Following the Gyeongbu Expressway and High-Speed Internet

The AI industry expects that AI data centers will serve not only as a new growth engine for Korea, but also as a national strategic asset. In particular, it is expected that linking AI data centers with regional industries will contribute to balanced regional development.

The construction of a 15GW-scale AI data center is expected to serve as a springboard for Korea to become an AI infrastructure hub. SKT views AI data centers as Korea's third innovative infrastructure, following the Gyeongbu Expressway (1968) and high-speed internet (1998), and intends to take a leading role in advancing it.

"This AI data center project is aimed at preemptively preparing the computing infrastructure that the global AI ecosystem needs," said Jung Jai-hun, President and CEO of SKT. "We will work closely with the government, industry, and local communities to help Korea grow into Asia's core AI infrastructure hub."

About SK Telecom 

SK Telecom has been leading the growth of the mobile industry since 1984. Now, it is taking customer experience to new heights by extending beyond connectivity. By placing AI at the core of its business, SK Telecom is rapidly transforming into an AI company with a strong global presence. It is focusing on driving innovations in areas of AI Infrastructure, AI Transformation (AIX) and AI Service to deliver greater value for industry, society, and life. 

For more information, please visit our newsroom at https://news.sktelecom.com/en/ or our LinkedIn page at www.linkedin.com/company/sk-telecom.

Forward-Looking Statements: Certain statements in this press release including, but not limited to, statements as to: SK Telecom's plans, objectives and expectations regarding the development, construction, financing and operation of AI data centers and AI infrastructure; the planned development of AI data center capacity, including the phased development of projects in Ulsan and other regions of Korea; anticipated project timing, financing arrangements and strategic partnerships; expectations regarding AI Factory deployment, AI infrastructure demand and Korea's position as an AI infrastructure hub; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections based on management's beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause actual results to be materially different than expectations.

Important factors that could cause actual results to differ materially include: global economic and political conditions; customer demand for AI infrastructure and services; the availability and cost of financing, computing resources, semiconductors, power, networking capacity and data center infrastructure; changes in governmental policies, applicable laws and regulations; the ability to secure strategic partners and customers; technological developments and competition; supply chain disruptions; the ability of SK Telecom and its collaborators and partners to successfully implement the contemplated initiatives and realize anticipated benefits; and other factors detailed from time to time in reports filed or furnished by SK Telecom with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 20-F.

These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by applicable law, SK Telecom undertakes no obligation to update these forward-looking statements to reflect future events or circumstances.

[1]  "AI Power: Expanding data center capacity to meet growing demand" (McKinsey & Company)

[2] SK Telecom and NVIDIA Build AI Infrastructure to Power Korea's AI Innovation (June 8, 2026) https://news.sktelecom.com/en/3124   SK Group and AWS Team Up to Build Cloud Computing Infrastructure to Support AI Innovation (June 22, 2025) https://news.sktelecom.com/en/1948

 

View original content:https://www.prnewswire.com/news-releases/sk-telecom-pursues-15gw-ai-data-center-buildout-aiming-to-become-asias-ai-infrastructure-hub-302817963.html

SOURCE SK Telecom

FAQ

What is SK Telecom's 15GW AI data center plan announced on July 5, 2026 (NYSE: SKM)?

SK Telecom plans to develop up to 15GW of AI data center capacity to make Korea an AI infrastructure hub in Asia. According to SK Telecom, the buildout starts from its Ulsan site and expands across multiple Korean regions in stages.

When will SK Telecom's Ulsan AI data center and 5GW capacity come online?

SK Telecom expects its domestic AI data center capacity to reach 5GW in stages starting from 2029. According to SK Telecom, this includes an over 2GW cluster around Ulsan in the southeast and an additional 1GW facility in the southwestern Jeolla region.

How does SK Telecom plan to finance its large-scale AI data center buildout?

SK Telecom indicates that a typical 1GW AI data center may cost about KRW 70 trillion. According to SK Telecom, funding will come from its own investments, strategic partner capital, long-term customer contracts, and project financing arrangements to support the planned multi-gigawatt expansion.

What role will SK Group affiliates play in SK Telecom's AI infrastructure project (SKM)?

SK Group affiliates will contribute semiconductors, energy solutions, and construction and operations expertise to the AI data centers. According to SK Telecom, the project combines the Group’s full-stack AI infrastructure capabilities, with SK Telecom leading design, construction, and operation as the central AI infrastructure architect.

What is SK Telecom's AI Factory and when will it begin operations?

The AI Factory is described by SK Telecom as a next-generation AI data center model. According to SK Telecom, AI Factory operations are planned to start in 2027, with the facility expected to scale up to gigawatt-level capacity as part of the broader AI infrastructure roadmap.

How does SK Telecom's 15GW AI data center plan support Korea's AI G3 strategy?

The project is linked to Korea’s goal of becoming a top-three global AI power, or “AI G3.” According to SK Telecom, large-scale AI data centers are intended as national strategic assets that strengthen AI computing infrastructure and support balanced regional development across multiple Korean regions.

Where will SK Telecom's new AI data centers be located within Korea?

SK Telecom plans a major AI data center cluster around Ulsan and the broader Gyeongsang region, exceeding 2GW, plus about 1GW in the Jeolla region. According to SK Telecom, these regional hubs will collectively contribute to achieving 5GW domestic capacity from 2029.