SK Group to build 2GW-plus AI data center cluster in Yeongnam with 140 trillion won investment

SK Group plans to invest about 140 trillion won ($90.1 billion) — including through partnerships and capital raised from overseas investors — to build an AI data center cluster of more than 2 gigawatts in the Yeongnam region.

SK Group announced the investment plan Thursday at a national briefing on the Yeongnam advanced industry development vision, hosted by the government at Gyeongsang National University in Jinju, South Gyeongsang Province.

SK Telecom President and CEO Jeong Jae-heon said at the briefing that while conventional data centers served as repositories for storing information, the new generation of AI data centers functions as a factory for generating intelligence. "In this factory, semiconductors and power are combined to produce what we call tokens — and tokens are the core raw material of AI," he said.

Jeong said the AI data center, with its enormous processing capacity, is not only a high-value industrial asset that can transform the world but also a critical national security asset. "The world is now at war to secure this asset," he said, adding that global companies are pouring astronomical sums into the effort and nations are mobilizing every resource to attract or build their own AI data centers.

Jeong said the core elements of AI data center infrastructure are semiconductors, energy solutions, and the capability to build and operate data centers. "SK already has the experience and capability to develop and run AI data centers, and on that foundation we plan to build Asia's largest AI data center infrastructure hub," he said.

He outlined a phased approach: a first stage targeting 5GW of AI data center capacity, with openings beginning in 2029, followed by an expansion to 15GW. "The first-stage build is not simply a matter of constructing a few data centers — it is a mega-project requiring a site of 750,000 pyeong (about 2.48 million square meters), 300,000 graphics processing units, and investment of more than 350 trillion won," he said. "We will launch this project right here in Yeongnam."

Jeong said SK has designated Ulsan as its first project site and is already developing a 100-megawatt data center there, with an additional 900MW in preparation. "SK plans to complete more than 2GW of AI data centers across the entire Yeongnam region in stages, with total investment of about 140 trillion won, including foreign capital," he said.

He closed by saying that once the large-scale AI data center infrastructure is in place, combining Yeongnam's manufacturing capabilities with AI will allow the region to grow into a hub not only for productivity transformation but also for demonstrating and spreading manufacturing AI. "In line with the full support of the central and local governments, SK will build a new Gyeongbu Expressway through AI," he said.

Meanwhile, the government plans to develop Yeongnam into the world's top advanced manufacturing hub, surpassing its current standing as the domestic leader. To support that goal, it will also focus on developing high-performance, low-power semiconductors for data center servers to underpin the gigawatt-scale mega AI data centers planned for Ulsan and other sites in the region.