SK Telecom’s 15GW data centre project promises to make Korea an AI hub

SK Telecom (SKT) announced over the weekend that it would be pursuing the construction of an AI data centre with a scale of up to 15GW. Its goal? To become Asia’s AI infrastructure hub.

The company’s move is intended to build domestic AI computing infrastructure at a time when demand for AI model training and inference is surging, the company said. As a result of such a boom, access to high-performance computing infrastructure determines how competitive a country is.

With South Korea seeking to become one of the world’s leading AI powers alongside China and the US, SKT is linking its project with the government’s ‘AI G3’ strategy. The company said it will help balance regional development and review core infrastructure elements like power and operations for AI data centres.

“This AI data centre project is aimed at pre-emptively 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.”

Scaling Korean AI growth

The news comes as South Korea continues to attract attention as an important investment destination for big tech for their AI data centres. The country is already fairly competitive in core AI components like high-bandwidth memory, in addition to stable power supply conditions based on nuclear power and liquefied natural gas (LNG), alongside GW-class infrastructure operating capabilities – all important for building AI data centres.

SKT will start its 15GW project with the AI data centre currently under construction in Ulsan, with SKT building a cluster of more than 2GW across the southeastern region (Gyeongsang). SKT said this location will be used as a base to attract AI infrastructure demand from big tech companies to Korea, with the company also planning to build an additional 1GW in the southwestern region of Jeolla to bring its domestic AI data centre capacity to 5GW. This will be opened in stages, starting in 2029.

Additionally, SKT is pursuing AI data centre infrastructure based on three core elements: semiconductors, energy solutions and data centre construction and operation capabilities. The company will take on the central role of leading the design, construction and operation of the AI data centres, continuing its existing cooperation with big tech.

Turbocharging to gigawatt-scale

AI data centres are expected to serve as a new growth engine for South Korea, but also a national strategic asset. In particular, it is expected that linking AI data centers with regional industries will contribute to balanced regional development, SKT explained.

At SK AI Summit 2025 last year, Jung Jai-hun unveiled the company’s AI infrastructure roadmap and stated that SKT would be leading the evolution of AI infrastructure as South Korea’s leading AI operator.

More recently, SKT announced plans to operate an AI Factory, with operations expected to commence in 2027.

The news from SKT comes as AI data centre interest soars, but global supply issues continue. According to McKinsey & Company, global data centre demand will grow 19-22% every year while supply fails to keep pace, resulting in a 15GW shortfall in the US alone by 2030.

Likewise, costs are also expected to rise – with SKT stating it will be financing the project through its own investment and strategic partner investment, long-term customer contracts and project financing.

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