SK Telecom Plans 15GW AI Data Center to Make Korea Asia's AI Hub

SK Telecom (NYSE: SKM) unveiled an ambitious plan to construct up to 15GW of AI data center capacity, marking a major escalation in its AI infrastructure strategy. The buildout starts with a 5GW domestic target, with the first capacity coming online in stages from 2029 at a new Ulsan site and additional clusters in the southeastern region (over 2GW) and southwestern Jeolla region (1GW). Each 1GW-class AI data center is expected to cost roughly KRW 70 trillion (about $48 billion), a staggering figure that underscores the capital intensity of hyperscale AI compute. SKT plans to finance these projects through a mix of company capital, strategic partners, long-term customer contracts, and project financing, leveraging its active S-3 shelf registration for flexible debt issuance.

Beyond the buildout, SKT intends to launch an AI Factory starting in 2027, which will initially operate at smaller scale before expanding to gigawatt capacity. The company is also coordinating capabilities across SK Group affiliates—including SK Hynix (high-bandwidth memory), SK E&S (liquefied natural gas), and other units—to deliver a full-stack AI infrastructure solution. The plan targets both domestic demand and global big tech companies seeking data center capacity in Asia, especially given an estimated 15GW shortfall in the U.S. by 2030. Historically, SKT's AI announcements have triggered mild positive stock moves (~0.4%), but this buildout represents a step-change in scale and ambition.