SK Telecom launches AI data center unit SK Hyper, targets Asia infrastructure hub

SK Telecom has established SK Hyper Co., a dedicated subsidiary for AI data center development, and plans to invest 750 billion won ($506 million) in the new unit through 2030 to build its business foundation.

SK Telecom's board approved the establishment of SK Hyper and the capital commitment Thursday, according to industry sources. The move marks the first concrete step since SK Telecom unveiled its "Asia AI Infrastructure Hub" vision and announced plans to build 15 gigawatts of AI data center capacity earlier this month.

AI data centers, pivotal to the AI industry, are increasingly regarded as a next-generation national strategic asset, and global competition in the sector is intensifying.

According to McKinsey & Company, global data center demand is expected to grow 19 to 22 percent annually. Industry observers also project that AI data center demand will more than double by 2030, driven by the broader adoption of generative AI and a growing share of AI inference workloads.

Major economies are pouring resources into AI infrastructure. In the United States, big tech companies are leading large-scale investment in AI infrastructure expansion. China is pursuing a state-led strategy known as "East Data, West Computing," which routes data generated in eastern regions to processing facilities in the west.

South Korea recently announced its own "Three Mega-Projects for a Great Leap Forward" policy, covering semiconductors, AI data centers and physical AI. The country is particularly well-positioned for AI data center development, given its stable power supply and its role as a production base for high-bandwidth memory chips.

SK Hyper will operate as a wholly owned subsidiary of SK Telecom, with capital to be injected in installments through 2030 within the approved ceiling.

Jeong Seok-geun, head of SK Telecom's AI CIC, has been appointed chief executive of SK Hyper. He will concurrently serve as head of SK Telecom's AI data center integrated task force — a dual role designed to link SK Group's AI data center execution units and accelerate project delivery.

With SK Hyper now operational, SK Telecom plans to step up its expansion of AI data center infrastructure across South Korea, targeting a phased rollout of 5 gigawatts of capacity by 2029 and a sequential scale-up to 15 gigawatts by 2035.

To that end, SK Hyper will prioritize securing shared infrastructure for AI data center projects, investing in site acquisition, substation construction and operation, and the buildout of transmission and distribution lines. Beyond infrastructure, the company aims to contribute to balanced regional development, attract global AI data center demand to South Korea, and strengthen the country's AI infrastructure ecosystem.

The company also plans to extend South Korea's data center infrastructure, currently concentrated in the greater Seoul area, across the country. Starting with a gigawatt-scale AI data center cluster in Ulsan, SK Hyper intends to build additional gigawatt-scale facilities in the Chungcheong region and the southwestern part of the country.

"SK Hyper will turn SK Group's 'Asia AI Infrastructure Hub' blueprint into reality," Jeong said. "Through systematic and swift execution, we will secure core infrastructure and customers, and contribute to South Korea's rise as one of the world's top three AI powers."