SK Telecom Plans 15GW AI Data Center in South Korea by 2035

SK Telecom targets massive AI infrastructure buildout

SK Telecom has announced plans to construct an AI data center complex in Ulsan, South Korea, that could reach 15 gigawatts of capacity—one of the largest such facilities globally. The project will begin with 5GW coming online in stages starting in 2029, with the full 15GW buildout planned for completion over subsequent years.

The initiative represents a significant bet on Korea's potential as a regional AI infrastructure hub. SK Telecom will lead the overall project, drawing on capabilities across the SK Group to deliver what the company characterizes as "full-stack AI infrastructure."

Why it matters

Global demand for AI computing capacity is outpacing supply, creating strategic opportunities for countries with the right combination of power infrastructure, technical expertise, and operational scale. Korea's move to build gigawatt-scale AI data centers could position it as a critical node in the global AI supply chain, particularly for companies seeking alternatives to concentrated capacity in the United States and China.

Addressing a global shortage

The scale of SK Telecom's ambition reflects genuine market dynamics. McKinsey & Company projects global data center demand will grow 19-22% annually, while supply constraints could create a shortfall of approximately 15GW in the United States alone by 2030.

Major technology companies are responding by diversifying data center investments beyond traditional hubs. Korea presents several advantages as a destination: the country has established strength in high-bandwidth memory production, stable power supply anchored by nuclear and liquefied natural gas generation, and operational expertise from running large-scale semiconductor fabrication facilities.

Financing a trillion-won project

The economics are substantial. SK Telecom estimates that building a typical 1GW AI data center could require approximately 70 trillion Korean won in project costs, driven by high-performance computing infrastructure and rising memory prices. For a 15GW facility, the financial commitment would be correspondingly larger.

The company plans to finance construction through multiple channels: its own capital investment, strategic partnerships, long-term customer contracts that provide revenue visibility, and project financing arrangements. This multi-pronged approach reflects the capital intensity of modern AI infrastructure.

National strategy alignment

SK Telecom is positioning the Ulsan project within Korea's broader "AI G3" national strategy, which aims to establish the country as one of three leading AI powers alongside the United States and China. The company is also framing the data center as contributing to balanced regional development, echoing how previous national infrastructure projects—the Gyeongbu Expressway and high-speed internet rollout—shaped Korea's economic geography.

The company indicated it is conducting comprehensive reviews of power supply, site requirements, and operational infrastructure needed to support the facility.

These details were first reported in a press release distributed by SK Telecom.