AI Hub: SK Telecom to Build 15GW Data Centres in South Korea

SK Telecom estimates that building a typical 1GW AI data center would require a project cost of around KRW 70 trillion (US$45.6 billion). Credit: SK Telecom

SK Telecom aims to position itself as Asia’s digital infrastructure hub through a 15GW AI data center expansion plan designed to strengthen South Korea’s national competitiveness.

SK Telecom has announced plans to build AI data centers with a total capacity of 15GW.

The telecom provider is pursuing this initiative to establish South Korea as a major digital infrastructure hub in the Asian market.

This effort proactively expands domestic computing capacity to meet the growing demands of AI model training and inference.

SK Telecom views high-performance computing infrastructure as a key factor in national economic competitiveness.

The development aligns with the South Korean government’s AI G3 strategy.

This initiative aims to position the country among the top three global AI powers alongside the United States and China.

The project also supports goals for balanced regional economic development.

SK Telecom is thoroughly evaluating core infrastructure elements such as power availability, site selection, and operational frameworks for the proposed facilities.

KEY FIGURES

• Global data center demand is rising by 19% to 22% annually (McKinsey & Company)
• SK Telecom estimates that building a standard 1GW AI data center would require a project cost of around KRW 70 trillion (US$45.6 billion)

Expanding regional capacity

The capacity expansion program begins with a site currently under construction in Ulsan.

SK Telecom will develop a cluster exceeding 2GW across the southeastern Gyeongsang region.

The company plans to use this facility to attract infrastructure demand from international technology companies to South Korea.

An additional 1GW development is planned for the southwestern Jeolla region. These initial phases will bring domestic capacity to 5GW.

SK Telecom will activate the first facilities in scheduled phases starting in 2029. Reaching the final 15GW target will require substantial capital expenditure.

The company estimates that building a standard 1GW AI data center would require a project cost of around KRW 70 trillion (US$45.6 billion).

This high cost reflects the expenses associated with deploying high-performance computing components along with current pricing for memory hardware.

SK Telecom expects to finance this large-scale development through internal corporate investment, strategic partner contributions, long-term customer contracts, and dedicated project financing.

The company plans to select subsequent sites and secure anchor tenants by aligning with strategic supply plans.

In January 2025, SK Telecom launched AI Data Center-based GPUaaS. Credit: SKT

Global supply constraints drive infrastructure growth

A key driver behind this scale of infrastructure development is an expected shortfall in global data center supply.

According to consulting firm McKinsey & Company, global data center demand is projected to grow by 19% to 22% annually.

This sustained growth is expected to outpace new supply. The consultancy estimates a resulting capacity shortfall of roughly 15GW in the US alone by 2030.

As a result, large technology companies are expanding their infrastructure investments beyond the US to international locations.

South Korea offers specific structural advantages for these deployments. The country maintains a strong manufacturing position in core AI components, including high-bandwidth memory.

The domestic power grid provides stable electricity supported by baseload nuclear energy and liquefied natural gas generation.

The country also has established gigawatt-class infrastructure operating capabilities developed through the historical management of large-scale semiconductor fabrication plants.

These factors combine to position South Korea as an attractive destination for targeted infrastructure investment.

Coordinating with SK Group

Delivering this complex infrastructure requires a combination of semiconductor supply, energy solutions, and operational expertise. SK Group holds these core capabilities across its various affiliates.

The development program will combine these full-stack resources, with each affiliate contributing specific technical strengths.

SK Telecom will serve as the lead architect for the overall project, guiding the design, construction, and operation phases for the planned data centers.

The telecom provider has established an operational framework for this sector and maintains active cooperative relationships with international technology firms.

The domestic technology sector expects these data centers to function as a national strategic asset. Linking these digital facilities with regional industries is expected to support broader economic development goals.

SK Telecom considers this development South Korea’s third major national infrastructure revolution, following the construction of the Gyeongbu Expressway in 1968 and the deployment of high-speed internet networks in 1998.

Jung Jai-hun, President and CEO of SK Telecom

During the SK AI Summit 2025 held in November 2025, Jung Jai-hun, President and CEO of SK Telecom, outlined the broader roadmap for the company.

The presentation included a blueprint for expanding global cooperation and scaling up the initial Ulsan facility to exceed 1GW.

SK Telecom also announced plans to operate a next-generation facility designated as an AI Factory, with operations scheduled to begin at this site in 2027 before expanding it to gigawatt scale.

Jung explained that the initiative is designed to build a solid foundation for international technology demands.

He said: “This AI data center project is aimed at proactively preparing the computing infrastructure that the global AI ecosystem needs.

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