SK Telecom has unveiled an ambitious plan to construct AI data center infrastructure totaling 15 gigawatts of capacity, with the South Korean telecommunications giant aiming to transform the country into a dominant hub for AI computing across the Asian continent. The company said it plans to activate 5 GW of capacity in stages beginning in 2029, ultimately reaching a total of 15 GW.

Scale and Timeline of the Buildout

The project will begin with an AI data center currently under construction in Ulsan, the southeastern port city, which SKT plans to scale up as the cornerstone of a broader regional cluster.

The company intends to build more than 2 GW of capacity across the southeastern Gyeongsang region, using that footprint to attract AI infrastructure demand from global technology companies. An additional 1 GW is planned for the southwestern Jeolla region, bringing domestic capacity to 5GW by the time the phased openings begin in 2029.

SKT has also announced plans to operate what it describes as an "AI Factory," a next-generation AI data center concept it intends to bring online in 2027, with subsequent expansion to GW scale.

At the SK AI Summit held in November 2025, SKT President and CEO Jung Jai-hun outlined the company's AI infrastructure roadmap and presented plans for expanding cooperation with global big tech companies while scaling the Ulsan facility to over 1GW in total.

The Cost of GW-Scale Infrastructure

The financial scope of the undertaking is substantial. According to SKT, constructing a single 1 GW-class AI data center may require a project cost of approximately USD 45.69 billion, a figure driven by the buildout of high-performance AI computing infrastructure and rising memory prices.

The company said it expects to fund the project not solely through its own investment, but through a combination of strategic partner investment, long-term customer contracts, and project financing arrangements.

Global Supply Shortfall Drives Demand

SKT cited projections from global consulting firm McKinsey and Company as part of the rationale for the project. According to McKinsey, global data center demand is forecast to grow at an annual rate of 19 to 22 percent, while supply is unable to keep pace.

The firm estimated a shortfall of approximately 15 GW in the United States alone by 2030. In response to that gap, SKT said global technology companies are expanding data center investment beyond the United States to locations around the world, and that Korea is drawing increasing attention as a destination for such investment.

Why Korea Is Positioned as a Competitive Location

SKT pointed to several structural advantages that make Korea an attractive site for large-scale AI data centers. The country holds strong competitiveness in core AI components, particularly high-bandwidth memory. Korea also benefits from stable power supply conditions rooted in nuclear power and liquefied natural gas infrastructure.

Additionally, SKT noted that GW-class infrastructure operating capabilities have been developed through the management of semiconductor fabrication facilities, providing a foundation of relevant operational experience that translates to AI data center management.

The project is being pursued in alignment with the South Korean government's "AI G3" strategy, which targets a position for Korea among the world's three leading AI powers alongside the United States and China.

SKT said the project is also connected to government goals around balanced regional development, with site selection, power supply planning, and the securing of anchor tenants being considered in coordination with those national priorities.

SK Group's Full-Stack Capabilities

SKT said the broader SK Group is positioned to support the project across its core infrastructure dimensions. AI data centers require three central elements, according to the company: semiconductors, energy solutions, and data center construction and operational capabilities.

SK Group affiliates already hold capabilities across each of those areas, and SKT said the project will bring together what it described as the Group's full-stack AI infrastructure capabilities, with individual affiliates contributing according to their respective strengths.

SKT itself will take on the central role of leading design, construction, and operations across the data centers, functioning in what the company described as the role of AI Infrastructure Architect. The company said it has been actively developing its AI data center business and has maintained ongoing cooperation with global technology companies.

A National Infrastructure Milestone

SKT framed the project in explicitly historical terms, describing 15 GW-scale AI data center infrastructure as Korea's third major national infrastructure revolution.

The company drew a direct comparison to the construction of the Gyeongbu Expressway in 1968, which connected Seoul and Busan and became a symbol of Korea's industrial development, and the rollout of high-speed internet in 1998, which laid the digital foundation for the country's technology economy. SKT said it views AI data centers as occupying an equivalent role in Korea's economic future.

The company also highlighted the potential for AI data centers to support balanced regional development by linking the infrastructure to local industries in regions outside Seoul.

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

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