1
SK Telecom announced that SK Hyper will oversee the entire development process of the AIDC project, including securing land, constructing and operating substations, attracting customers, and commercializing new facilities.
In summary, here’s what you need to know:
dedicated execution – SK Telecom has established SK Hyper to lead the development, commercialization and operations of its planned 15GW AI data center portfolio.
long term investment – The company has approved investments of up to $540 billion through 2030 to secure land, build substations, and establish the foundation for expansion.
National AI ambitions – SK Hyper will support SK Telecom’s goal of building GW-scale AI data center clusters across South Korea as part of its vision to position South Korea as an AI infrastructure hub.
South Korean telecom operator SK Telecom has established a dedicated subsidiary to accelerate the development of hyperscale AI data center infrastructure, creating a new company focused on building up to 15GW of AI data center capacity across South Korea over the next 10 years.
The company’s board of directors approved the establishment of SK Hyper, with an investment commitment of up to KRW 750 billion ($540 million) through 2030 to support land acquisition, substation construction, and other infrastructure needed for the future AI campus.
According to SK Telecom, SK Hyper will oversee the entire development process of the AI data center business, including securing land, constructing and operating substations, attracting customers, and commercializing new facilities. The carrier will retain full ownership of the subsidiary and will provide capital in stages until 2030 within an approved investment framework.
The company said SK Hyper will pursue the development of 15GW of AI data center capacity in the medium to long term. The first phase targets the opening of 5GW of capacity starting in 2029, with additional expansion planned for a total of 15GW by 2035, depending on market demand and other factors.
SK Telecom said the new subsidiary is expected to accelerate the construction of AI data centers that support South Korea’s broader AI infrastructure ambitions. The company plans to develop a GW-scale AI data center cluster starting in Ulsan, followed by additional campuses in the Chungcheong and Honam regions.
This announcement follows the recent establishment of SK Telecom’s AI Data Center Integrated Development Department, which will report to the company’s CEO and aim to coordinate AI infrastructure development across the broader SK Group.
SK Hyper CEO Chung Suk-geun said, “SK Hyper’s role is to make SK Group’s blueprint for Asia’s AI infrastructure hub a reality.” “Through systematic and swift execution, we will secure core infrastructure and customers and contribute to Korea’s advancement into AI G3.”
In June, SK Telecom and Nvidia revealed plans to develop a gigawatt-scale AI cloud in South Korea based on Nvidia’s DSX AI Factory architecture. The first AI factory is scheduled to start operating in 2027.
According to the companies, AI Cloud provides GPU-based infrastructure for AI model training, inference, and agent AI to support sovereign AI initiatives and enterprise and industrial applications. SK Telecom also said that the platform aims to go beyond South Korea and serve other Asian markets over time.
Beyond infrastructure deployment, Nvidia and SK Group announced plans to jointly research next-generation AI factory architectures, focusing on areas such as accelerated computing, memory technology, and data center operations, to improve the scalability and efficiency of future AI infrastructure.
