SK Telecom (SKT) has established a new subsidiary dedicated to its AI Data Center (AIDC) business, marking a significant step towards building an AI infrastructure hub in Asia.
On July 23, SKT's board of directors approved the formation of 'SK Hyper,' a company focused on AIDC business development, and committed to investing a total of 750 billion won (approximately $675 million) by 2030 to establish a solid business foundation.
SK Hyper will operate as a wholly-owned subsidiary responsible for securing sites for AIDC construction, building and operating substations, attracting customers, and commercializing the business. The name reflects the ambition to transcend limitations and rapidly expand hyper-scale AIDC operations.
This establishment follows SKT's announcement earlier this month of its 'Asia AI Infrastructure Hub' strategy. The company previously highlighted South Korea's stable power supply and high-bandwidth memory (HBM) production capabilities as strengths in its plan to build a 15GW-scale AI data center.
SKT has set a first-phase goal of gradually constructing a 5-gigawatt (GW) AIDC by 2029, with plans to expand to a total of 15GW by 2035, depending on market demand. Recently, the company also established an 'AIDC Integration Promotion Team' directly under the CEO to oversee the group-wide AIDC initiative.
Infrastructure development will also occur regionally, starting with the creation of a GW-scale AIDC cluster in Ulsan, followed by similar projects in the Chungcheong and southwestern regions to enhance AI infrastructure across different areas.
SKT will operate SK Hyper as a 100% subsidiary, gradually investing funds up to the 750 billion won limit based on the progress of the business.
Jung Seok-geun, head of the AI CIC, has been appointed as the first CEO of SK Hyper. He will also serve as the head of the AIDC Integration Promotion Team, overseeing the group's AIDC initiatives.
SKT described this decision as a strategic response to the global competition in AI infrastructure. AIDC is considered a critical asset that underpins AI model training and inference, influencing national AI competitiveness. Demand for AIDC is expected to more than double by 2030 due to the expansion of AI inference services. Global consulting firm McKinsey has projected that global data center demand will grow at an annual rate of 19% to 22%.
Competition is intensifying globally, with major U.S. tech companies ramping up investments in large-scale AI infrastructure, while China is accelerating its national AI infrastructure development through its 'East Data, West Computing' strategy. SKT aims to respond to this global competition by fully launching its AI infrastructure initiatives following the establishment of its dedicated AI data center subsidiary.
Jung Seok-geun, CEO of SK Hyper, stated, "SK Hyper will play a crucial role in realizing SK Group's vision of an 'Asia AI Infrastructure Hub.' Through systematic and rapid execution, we will secure essential infrastructure and customers, contributing to South Korea's rise as a leading AI powerhouse."
* This article has been translated by AI.
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