AWS will invest $4 billion in the AI project, while SK’s key subsidiaries will contribute substantial resources to the initiative
In sum – what to know:
Massive AI infrastructure – Korean conglomerate SK Group and U.S. firm AWS will jointly build South Korea’s largest AI data center in Ulsan, starting with 60,000 GPUs and targeting 1 GW of capacity by 2029.
Joint multibillion-dollar investment – AWS is expected to invest $4 billion in the project, with SK Group subsidiaries contributing further resources and planning an additional $2.5B in AI initiatives.
Strategic site and scaling – Located near a key LNG power plant, the AI facility ensures stable energy and represents Korea’s most ambitious AI computing project.
South Korean conglomerate SK Group is partnering with Amazon Web Services (AWS) with the main aim of building what it would be the largest and most powerful AI data center in the Asian nation, according to Korean press reports.
The reports stated that the construction of the AI-driven facility is slated to begin in August in Ulsan’s Mipo National Industrial Complex, where the 103-megawatt data center will eventually house 60,000 GPUs — the largest GPU deployment ever in a Korean data center.
The reports also highlighted that the phased rollout will see 41 MW of capacity come online by November 2027, expanding to the full 103 MW by February 2029. The Korean conglomerate plans to further scale the site to a gigawatt-class (1 GW) facility,
The reports cited sources with knowledge of the matter saying that AWS will invest $4 billion, while SK’s key subsidiaries — SK Telecom, SK Broadband, SK Gas and SK Hynix — will contribute substantial resources to the initiative. As part of its broader AI strategy, SK Telecom and SK Broadband plan to invest 3.4 trillion won ($2.5 billion) in AI-related initiatives by 2028.
The data center’s proximity to SK Gas’s LNG combined-cycle power plant ensures stable power delivery, critical for the AI infrastructure.
The announcement builds on AWS’s growing footprint in Korea, including existing facilities in Seoul and ongoing development in the city of Incheon.
Korean telco SK Telecom, part of the SK Group, recently said it experienced solid revenue growth in its artificial intelligence businesses, such as AI data centers and AI transformation, during the first quarter of the year.
Through its “AI Infrastructure Superhighway” and “AI Pyramid Strategy” initiatives, the Asian telco is investing heavily in AI data centers, cloud-based GPU services and edge computing to support the growing demands of AI applications and services.
At the core of SK Telecom’s AI ambitions is the development of an “AI Infrastructure Superhighway,” a strategic initiative focused on three main components:
-AI Data Centers (AIDCs): The carrier is constructing hyperscale AI data centers across South Korea, each designed to exceed 100 megawatts in capacity. These facilities aim to serve as central hubs for AI processing and storage, supporting both domestic and international AI workloads.
-GPU-as-a-Service (GPUaaS): To democratize access to high-performance computing, SK Teñecp, has launched a cloud-based GPU service. This platform allows businesses and developers to utilize powerful GPU resources on-demand, facilitating AI model training and deployment without the need for significant upfront hardware investments.
-Edge AI: Recognizing the importance of low-latency processing, the Asian telco is expanding its edge computing capabilities. By integrating AI processing closer to data sources, such as mobile devices and IoT sensors, the company aims to enhance real-time data analysis and decision-making across various applications.
In 2023, SK Telecom had announced its ambition to become a global artificial intelligence company by strengthening its own AI competitiveness and cooperating with partners globally.
