SK Telecom plans 15 GW AI data center buildout, 5 GW from 2029

SK Telecom is planning an AI data center buildout totaling up to 15 GW in South Korea, with the stated goal of becoming an AI infrastructure hub in Asia. The company’s plan centers on scaling an AI data center project in Ulsan and expanding to additional regions, with capacity coming online in phases starting in 2029.

SK Telecom expects to reach 5 GW of domestic AI data center capacity first, then expand to 15 GW in total. The company said the Ulsan AI Data Center now under construction is the starting point, and it plans to build a cluster of more than 2 GW across Korea’s southeastern Gyeongsang region. It also plans an additional 1 GW build in the southwestern Jeolla region, bringing the total to 5 GW that would be activated in stages from 2029.

On cost, SK Telecom said a “typical 1 GW-class AI data center” can require approximately KRW 70 trillion due to high-performance AI computing buildouts and rising memory prices. It expects financing to include a mix of its own investment, strategic partner investment, long-term customer contracts, and project financing.

For data center engineers, the headline figure here is power. Planning at the multi-gigawatt level shifts the hard problems away from individual halls and into grid interconnection, siting, and long-term operations. SK Telecom said it is reviewing core infrastructure elements including power, siting, and operations, and is linking the project to South Korea’s “AI G3” strategy and regional development objectives.

SK Telecom also framed the project as a group effort across SK affiliates, naming semiconductors, energy solutions, and data center construction and operation as the three core elements of AI data center infrastructure. SK Telecom said it will lead the design, construction, and operation of the AI data centers, and separately plans to begin operating an “AI Factory” (described as a next-generation AI data center) in 2027, with an intent to expand it to gigawatt scale over time.

“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 SK Telecom. “We will work closely with the government, industry, and local communities to help Korea grow into Asia’s core AI infrastructure hub.”

SK Telecom has also highlighted prior work with partners including NVIDIA and AWS on AI and cloud infrastructure initiatives.