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SK Telecom plots 15GW AI data center expansion across South Korea

SK Telecom announced a 15GW AI data center construction plan, with the Ulsan facility reaching 5GW by 2029. The company will consolidate AI infrastructure across SK Group affiliates, with AI Factory operations launching in 2027. A 1GW-class data center is estimated to cost KRW 70 trillion.

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The essentials

SK Telecom plans 15GW AI data center expansion, with operations starting in 2027.

SK Telecom has announced a plan to construct 15GW of AI data center capacity, marking a significant infrastructure investment in South Korea's artificial intelligence sector. The Ulsan AI Data Center is set to reach 5GW capacity by 2029, with expansion to the full 15GW total capacity planned thereafter.

SK Group is consolidating AI infrastructure capabilities across its affiliates to streamline operations and maximize efficiency. The company plans AI Factory operations to begin in 2027, positioning the infrastructure ahead of full capacity completion. Construction of a 1GW-class facility is estimated to cost approximately KRW 70 trillion, reflecting the substantial capital investment required for this expansion.

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Timeline

SK Telecom's phased approach to 15GW capacity deployment

SK Telecom's infrastructure roadmap spans multiple phases. The Ulsan AI Data Center reaches 5GW by 2029, followed by expansion to 15GW total capacity. AI Factory operations begin in 2027, enabling earlier revenue generation before full capacity completion. This sequenced approach balances capital deployment with operational readiness.

Scale

Massive capital commitment reshapes South Korea's AI infrastructure landscape

The 15GW expansion represents substantial infrastructure scaling. Construction of 1GW-class facilities costs approximately KRW 70 trillion, indicating the financial magnitude of this initiative. SK Group's consolidated approach leverages multiple affiliates to execute this large-scale deployment, positioning South Korea as a significant AI infrastructure hub.