Ulsan AI Data Center to expand to GW scale; 5GW to be activated in stages from 2029, reaching 15GW in totalSK Group brings together full-stack AI infrastructure capabilities; SKT to spearhead the overall

<ul xmlns="http://www.w3.org/1999/xhtml" type="disc"><li xmlns="http://www.w3.org/1999/xhtml">Ulsan AI Data Center to expand to GW scale; 5GW to be activated in stages from 2029, reaching 15GW in total</li><li xmlns="http://www.w3.org/1999/xhtml">SK Group brings together full-stack AI infrastructure capabilities; SKT to spearhead the overall project</li><li xmlns="http://www.w3.org/1999/xhtml">Korea&#39;s third national infrastructure revolution following the Gyeongbu Expressway and high-speed internet</li></ul>SEOUL, Korea, July 5, 2026 /PRNewswire/ -- SK Telecom (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/SKM">SKM</a>, hereafter &#34, SKT&#34, )) today announced that it will pursue the construction of an AI data center with a scale of up to 15GW. The goal is to become an AI infrastructure hub in Asia.
The move is intended to preemptively build domestic AI computing infrastructure at a time when demand for AI model training and inference is surging and high-performance computing infrastructure determines national competitiveness.SKT is pursuing the project by linking it with the government&#39;s &#34;AI G3&#34; strategy — the goal of becoming one of the world&#39;s three leading AI powers alongside the U.S. and China — and the task of balanced regional development, comprehensively reviewing core infrastructure elements such as power, siting, and operations for the AI data center.<ul xmlns="http://www.w3.org/1999/xhtml" type="disc"><li xmlns="http://www.w3.org/1999/xhtml">Ulsan AI Data Center to Expand to GW Scale; 5GW to Be Activated in Stages from 2029, Reaching 15GW in Total</li></ul>Due to the buildout of high-performance AI computing infrastructure and rising memory prices, constructing a typical 1GW-class AI data center may require a substantial project cost reaching approximately KRW 70 trillion. Such costs are expected to be financed not only through the company&#39;s own investment but also through strategic partner investment, long-term customer contracts, and project financing.The backdrop to SKT&#39;s move into building an AI data center at this scale is a global supply shortage. Global consulting firm McKinsey &amp; Company forecasts that global data center demand will grow 19–22% annually while supply fails to keep pace, resulting in an estimated shortfall of about 15GW in the U.S. alone by 2030.[1]Accordingly, global big tech companies are expanding data center investment beyond the U.S. to locations around the world. In this context, Korea is drawing attention as an investment destination for global big tech companies&#39; AI data centers.Korea holds strong competitiveness in core AI components such as high-bandwidth memory (HBM). It also has stable power supply conditions based on nuclear power and liquefied natural gas (LNG), along with GW-class infrastructure operating capabilities accumulated through operating semiconductor fabs, making it an attractive location for AI data centers.Based on this solid demand and locational advantages, SKT plans to build AI data center capacity totaling 15GW.First, starting with the <a xmlns="http://www.w3.org/1999/xhtml" href="https://news.sktelecom.com/en/1948" target="_blank" rel="nofollow">AI data center currently under construction in Ulsan</a>, SKT will build a cluster of over 2GW across the southeastern region (Gyeongsang), using it as a base to attract AI infrastructure demand from global big tech companies to Korea. It also plans to build an additional 1GW in the southwestern region (Jeolla), bringing its domestic AI data center capacity to a total of 5GW to be opened in stages starting in 2029.To this end, SKT will pursue AI data center construction by considering various factors together — including site selection, power supply, and securing key anchor tenants — in connection with the government&#39;s balanced regional development tasks and strategic supply plans.<ul xmlns="http://www.w3.org/1999/xhtml" type="disc"><li xmlns="http://www.w3.org/1999/xhtml">SK Group brings together full-stack AI infrastructure capabilities; SKT to spearhead the overall project as AI Infrastructure Architect </li></ul>AI data center infrastructure hinges on three core elements: semiconductors, energy solutions, and data center construction and operation capabilities. SK Group already holds these core capabilities across its affiliates. This project will bring together the Group&#39;s full-stack AI infrastructure capabilities, with each affiliate contributing its own strengths.In particular, SKT will take on the central role of leading the design, construction, and operation of the AI data centers. SKT has already been actively pursuing the AI data center business and has continued its cooperation with global big tech companies[2].  At SK AI Summit 2025 last November, SKT President and CEO Jung Jai-hun unveiled the company&#39;s AI infrastructure roadmap, stating that SKT would lead the evolution of AI infrastructure as the nation&#39;s leading AI operator. He also presented a longer-term blueprint for expanding cooperation with global big tech companies and scaling up the Ulsan AI Data Center to a total of over 1GW.More recently, SKT announced plans to operate an &#34;<a xmlns="http://www.w3.org/1999/xhtml" href="https://news.sktelecom.com/en/3124" target="_blank" rel="nofollow">AI Factory</a>,&#34; described as a next-generation AI data center. SKT plans to begin AI Factory operations in 2027 and expand it to GW scale going forward.<ul xmlns="http://www.w3.org/1999/xhtml" type="disc"><li xmlns="http://www.w3.org/1999/xhtml">Korea&#39;s Third National Infrastructure Revolution Following the Gyeongbu Expressway and High-Speed Internet</li></ul>The AI industry expects that AI data centers will serve not only as a new growth engine for Korea, but also as a national strategic asset. In particular, it is expected that linking AI data centers with regional industries will contribute to balanced regional development.The construction of a 15GW-scale AI data center is expected to serve as a springboard for Korea to become an AI infrastructure hub. SKT views AI data centers as Korea&#39;s third innovative infrastructure, following the Gyeongbu Expressway (1968) and high-speed internet (1998), and intends to take a leading role in advancing it.&#34;This AI data center project is aimed at preemptively preparing the computing infrastructure that the global AI ecosystem needs,&#34; said Jung Jai-hun, President and CEO of SKT. &#34;We will work closely with the government, industry, and local communities to help Korea grow into Asia&#39;s core AI infrastructure hub.&#34;About SK Telecom SK Telecom has been leading the growth of the mobile industry since 1984. Now, it is taking customer experience to new heights by extending beyond connectivity. By placing AI at the core of its business, SK Telecom is rapidly transforming into an AI company with a strong global presence. It is focusing on driving innovations in areas of AI Infrastructure, AI Transformation (AIX) and AI Service to deliver greater value for industry, society, and life. For more information, please visit our newsroom at <a xmlns="http://www.w3.org/1999/xhtml" href="https://news.sktelecom.com/en/" target="_blank" rel="nofollow">https://news.sktelecom.com/en/</a> or our LinkedIn page at <a xmlns="http://www.w3.org/1999/xhtml" href="http://www.linkedin.com/company/sk-telecom" target="_blank" rel="nofollow">www.linkedin.com/company/sk-telecom</a>.Forward-Looking Statements: Certain statements in this press release including, but not limited to, statements as to: SK Telecom&#39;s plans, objectives and expectations regarding the development, construction, financing and operation of AI data centers and AI infrastructure; the planned development of AI data center capacity, including the phased development of projects in Ulsan and other regions of Korea; anticipated project timing, financing arrangements and strategic partnerships; expectations regarding AI Factory deployment, AI infrastructure demand and Korea&#39;s position as an AI infrastructure hub; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the &#34;safe harbor&#34; created by those sections based on management&#39;s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause actual results to be materially different than expectations.Important factors that could cause actual results to differ materially include: global economic and political conditions; customer demand for AI infrastructure and services; the availability and cost of financing, computing resources, semiconductors, power, networking capacity and data center infrastructure; changes in governmental policies, applicable laws and regulations; the ability to secure strategic partners and customers; technological developments and competition; supply chain disruptions; the ability of SK Telecom and its collaborators and partners to successfully implement the contemplated initiatives and realize anticipated benefits; and other factors detailed from time to time in reports filed or furnished by SK Telecom with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 20-F.These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by applicable law, SK Telecom undertakes no obligation to update these forward-looking statements to reflect future events or circumstances.<div xmlns="http://www.w3.org/1999/xhtml"><table xmlns="http://www.w3.org/1999/xhtml" border="0" cellspacing="0" cellpadding="1" class="prnbcc"><tr xmlns="http://www.w3.org/1999/xhtml"><td xmlns="http://www.w3.org/1999/xhtml" class="prngen2" colspan="1" rowspan="1">[1]  &#34;AI Power: Expanding data center capacity to meet growing demand&#34; (McKinsey &amp; Company)</td></tr><tr xmlns="http://www.w3.org/1999/xhtml"><td xmlns="http://www.w3.org/1999/xhtml" class="prngen2" colspan="1" rowspan="1">[2] SK Telecom and NVIDIA Build AI Infrastructure to Power Korea&#39;s AI Innovation (June 8, 2026) <a xmlns="http://www.w3.org/1999/xhtml" href="https://news.sktelecom.com/en/3124" target="_blank" class="prnews_a" rel="nofollow">https://news.sktelecom.com/en/3124</a>   SK Group and AWS Team Up to Build Cloud Computing Infrastructure to Support AI Innovation (June 22, 2025) <a xmlns="http://www.w3.org/1999/xhtml" href="https://news.sktelecom.com/en/1948" target="_blank" class="prnews_a" rel="nofollow">https://news.sktelecom.com/en/1948</a></td></tr></table></div> 



<img xmlns="http://www.w3.org/1999/xhtml" title="Cision" width="12" height="12" alt="Cision" src="https://edge.prnewswire.com/c/img/favicon.png?sn=CN98006&amp;sd=2026-07-04"></img> View original content:<a xmlns="http://www.w3.org/1999/xhtml" id="PRNURL" rel="nofollow" href="https://www.prnewswire.com/news-releases/sk-telecom-pursues-15gw-ai-data-center-buildout-aiming-to-become-asias-ai-infrastructure-hub-302817963.html" target="_blank">https://www.prnewswire.com/news-releases/sk-telecom-pursues-15gw-ai-data-center-buildout-aiming-to-become-asias-ai-infrastructure-hub-302817963.html</a>SOURCE SK Telecom

SK Telecom Pursues 15GW AI Data Center Buildout, Aiming to Become Asia's AI Infrastructure Hub

SK Telecom's 15GW AI data centers plan could reshape Asia infrastructure

<section class="insight" data-version="1">
 <section data-block="information">
 <h3>Information</h3>
 Ulsan AI Data Center to expand to GW scale; 5GW to be activated in stages from 2029, reaching 15GW in totalSK Group brings together full-stack AI infrastructure capabilities; SKT to spearhead the overall
 </section>

 <section data-block="ai-summary-paragraph">
 <h3>AI Summary</h3>
 SK Telecom unveiled a plan to build up to 15GW of AI data center capacity, with 5GW staged by 2029 and led by SKT within SK Group. Backed by government AI G3 strategy and rising global demand for compute power, the initiative implies massive capex and potential partnerships, potentially positioning SKM as Asia&#039;s AI infrastructure hub over the long term.
 </section>

 <section data-block="ai-summary-bullets">
 <h3>Key Points</h3>
 <ul><li>SK Telecom to pursue 15GW AI data centers; 5GW by 2029.</li><li>SK Group coordinates full-stack AI infra; SKT leads design, build, ops.</li><li>Ulsan site under construction; 2GW SE cluster and 1GW SW planned.</li><li>1GW capex ~KRW70 trillion; 15GW could exceed KRW1,000 trillion total.</li><li>McKinsey forecasts 19–22% annual data center demand growth; 2030 US shortfall ~15GW.</li></ul>
 </section>

 <section data-block="companies-mentioned">
 <h3>Companies Mentioned</h3>
 <ul><li>SK Telecom (SKM): Leading sponsor and project architect for 15GW AI data centers; potential long-term growth.</li><li>SK Group (N/A): Coordinating group-wide AI infra; potential cross-affiliate funding and partnerships.</li><li>NVIDIA (NVDA): Referred to in context of AI infrastructure collaboration with SKT; hardware ecosystem relevance.</li><li>Amazon.com, Inc. (AWS) (AMZN): Referenced as part of SK Group&#039;s cloud-infrastructure ambitions; potential anchor tenancy.</li></ul>
 </section>

 <section data-block="category">
 <h3>Industry News</h3>
 Industry News; reflects a strategic pivot by SKM toward AI infrastructure leadership and aligns with national AI goals.
 </section>

 <section data-block="market-moving">
 <h3>Market-Moving</h3>
 <ul><li>Large capex and financing needs could influence SKM&#039;s balance sheet and leverage.</li><li>Government alignment and anchor tenants may unlock favorable long-term contracting.</li><li>Possible cloud-provider partnerships could attract global data-center demand to SKM.</li></ul>
 </section>

 <section data-block="key-facts">
 <h3>Key Facts</h3>
 <ul><li>AI data center plan caps at 15GW; 5GW phased by 2029.</li><li>Initial 2GW in Gyeongsang and 1GW in Jeolla region planned.</li><li>Cost roughly KRW70 trillion per 1GW; 15GW could be KRW1,050 trillion total.</li><li>McKinsey: data center demand 19–22% annually; ~15GW US shortfall by 2030.</li></ul>
 </section>

 <section data-block="trading-thesis">
 <h3>Trading Thesis</h3>
 Long SKM over 12–24 months as AI infra expansion advances and financing/anchor-tenancy deals materialize.
 </section>
</section>


<ul xmlns="http://www.w3.org/1999/xhtml" type="disc"><li xmlns="http://www.w3.org/1999/xhtml">Ulsan AI Data Center to expand to GW scale; 5GW to be activated in stages from 2029, reaching 15GW in total</li><li xmlns="http://www.w3.org/1999/xhtml">SK Group brings together full-stack AI infrastructure capabilities; SKT to spearhead the overall project</li><li xmlns="http://www.w3.org/1999/xhtml">Korea&#39;s third national infrastructure revolution following the Gyeongbu Expressway and high-speed internet</li></ul>SEOUL, Korea, July 5, 2026 /PRNewswire/ -- SK Telecom (NYSE:<a class="ticker" href="https://www.benzinga.com/quote/SKM">SKM</a>, hereafter &#34, SKT&#34, )) today announced that it will pursue the construction of an AI data center with a scale of up to 15GW. The goal is to become an AI infrastructure hub in Asia.
The move is intended to preemptively build domestic AI computing infrastructure at a time when demand for AI model training and inference is surging and high-performance computing infrastructure determines national competitiveness.SKT is pursuing the project by linking it with the government&#39;s &#34;AI G3&#34; strategy — the goal of becoming one of the world&#39;s three leading AI powers alongside the U.S. and China — and the task of balanced regional development, comprehensively reviewing core infrastructure elements such as power, siting, and operations for the AI data center.<ul xmlns="http://www.w3.org/1999/xhtml" type="disc"><li xmlns="http://www.w3.org/1999/xhtml">Ulsan AI Data Center to Expand to GW Scale; 5GW to Be Activated in Stages from 2029, Reaching 15GW in Total</li></ul>Due to the buildout of high-performance AI computing infrastructure and rising memory prices, constructing a typical 1GW-class AI data center may require a substantial project cost reaching approximately KRW 70 trillion. Such costs are expected to be financed not only through the company&#39;s own investment but also through strategic partner investment, long-term customer contracts, and project financing.The backdrop to SKT&#39;s move into building an AI data center at this scale is a global supply shortage. Global consulting firm McKinsey &amp; Company forecasts that global data center demand will grow 19–22% annually while supply fails to keep pace, resulting in an estimated shortfall of about 15GW in the U.S. alone by 2030.[1]Accordingly, global big tech companies are expanding data center investment beyond the U.S. to locations around the world. In this context, Korea is drawing attention as an investment destination for global big tech companies&#39; AI data centers.Korea holds strong competitiveness in core AI components such as high-bandwidth memory (HBM). It also has stable power supply conditions based on nuclear power and liquefied natural gas (LNG), along with GW-class infrastructure operating capabilities accumulated through operating semiconductor fabs, making it an attractive location for AI data centers.Based on this solid demand and locational advantages, SKT plans to build AI data center capacity totaling 15GW.First, starting with the <a xmlns="http://www.w3.org/1999/xhtml" href="https://news.sktelecom.com/en/1948" target="_blank" rel="nofollow">AI data center currently under construction in Ulsan</a>, SKT will build a cluster of over 2GW across the southeastern region (Gyeongsang), using it as a base to attract AI infrastructure demand from global big tech companies to Korea. It also plans to build an additional 1GW in the southwestern region (Jeolla), bringing its domestic AI data center capacity to a total of 5GW to be opened in stages starting in 2029.To this end, SKT will pursue AI data center construction by considering various factors together — including site selection, power supply, and securing key anchor tenants — in connection with the government&#39;s balanced regional development tasks and strategic supply plans.<ul xmlns="http://www.w3.org/1999/xhtml" type="disc"><li xmlns="http://www.w3.org/1999/xhtml">SK Group brings together full-stack AI infrastructure capabilities; SKT to spearhead the overall project as AI Infrastructure Architect </li></ul>AI data center infrastructure hinges on three core elements: semiconductors, energy solutions, and data center construction and operation capabilities. SK Group already holds these core capabilities across its affiliates. This project will bring together the Group&#39;s full-stack AI infrastructure capabilities, with each affiliate contributing its own strengths.In particular, SKT will take on the central role of leading the design, construction, and operation of the AI data centers. SKT has already been actively pursuing the AI data center business and has continued its cooperation with global big tech companies[2].  At SK AI Summit 2025 last November, SKT President and CEO Jung Jai-hun unveiled the company&#39;s AI infrastructure roadmap, stating that SKT would lead the evolution of AI infrastructure as the nation&#39;s leading AI operator. He also presented a longer-term blueprint for expanding cooperation with global big tech companies and scaling up the Ulsan AI Data Center to a total of over 1GW.More recently, SKT announced plans to operate an &#34;<a xmlns="http://www.w3.org/1999/xhtml" href="https://news.sktelecom.com/en/3124" target="_blank" rel="nofollow">AI Factory</a>,&#34; described as a next-generation AI data center. SKT plans to begin AI Factory operations in 2027 and expand it to GW scale going forward.<ul xmlns="http://www.w3.org/1999/xhtml" type="disc"><li xmlns="http://www.w3.org/1999/xhtml">Korea&#39;s Third National Infrastructure Revolution Following the Gyeongbu Expressway and High-Speed Internet</li></ul>The AI industry expects that AI data centers will serve not only as a new growth engine for Korea, but also as a national strategic asset. In particular, it is expected that linking AI data centers with regional industries will contribute to balanced regional development.The construction of a 15GW-scale AI data center is expected to serve as a springboard for Korea to become an AI infrastructure hub. SKT views AI data centers as Korea&#39;s third innovative infrastructure, following the Gyeongbu Expressway (1968) and high-speed internet (1998), and intends to take a leading role in advancing it.&#34;This AI data center project is aimed at preemptively preparing the computing infrastructure that the global AI ecosystem needs,&#34; said Jung Jai-hun, President and CEO of SKT. &#34;We will work closely with the government, industry, and local communities to help Korea grow into Asia&#39;s core AI infrastructure hub.&#34;About SK Telecom SK Telecom has been leading the growth of the mobile industry since 1984. Now, it is taking customer experience to new heights by extending beyond connectivity. By placing AI at the core of its business, SK Telecom is rapidly transforming into an AI company with a strong global presence. It is focusing on driving innovations in areas of AI Infrastructure, AI Transformation (AIX) and AI Service to deliver greater value for industry, society, and life. For more information, please visit our newsroom at <a xmlns="http://www.w3.org/1999/xhtml" href="https://news.sktelecom.com/en/" target="_blank" rel="nofollow">https://news.sktelecom.com/en/</a> or our LinkedIn page at <a xmlns="http://www.w3.org/1999/xhtml" href="http://www.linkedin.com/company/sk-telecom" target="_blank" rel="nofollow">www.linkedin.com/company/sk-telecom</a>.Forward-Looking Statements: Certain statements in this press release including, but not limited to, statements as to: SK Telecom&#39;s plans, objectives and expectations regarding the development, construction, financing and operation of AI data centers and AI infrastructure; the planned development of AI data center capacity, including the phased development of projects in Ulsan and other regions of Korea; anticipated project timing, financing arrangements and strategic partnerships; expectations regarding AI Factory deployment, AI infrastructure demand and Korea&#39;s position as an AI infrastructure hub; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the &#34;safe harbor&#34; created by those sections based on management&#39;s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause actual results to be materially different than expectations.Important factors that could cause actual results to differ materially include: global economic and political conditions; customer demand for AI infrastructure and services; the availability and cost of financing, computing resources, semiconductors, power, networking capacity and data center infrastructure; changes in governmental policies, applicable laws and regulations; the ability to secure strategic partners and customers; technological developments and competition; supply chain disruptions; the ability of SK Telecom and its collaborators and partners to successfully implement the contemplated initiatives and realize anticipated benefits; and other factors detailed from time to time in reports filed or furnished by SK Telecom with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 20-F.These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by applicable law, SK Telecom undertakes no obligation to update these forward-looking statements to reflect future events or circumstances.<div xmlns="http://www.w3.org/1999/xhtml"><table xmlns="http://www.w3.org/1999/xhtml" border="0" cellspacing="0" cellpadding="1" class="prnbcc"><tr xmlns="http://www.w3.org/1999/xhtml"><td xmlns="http://www.w3.org/1999/xhtml" class="prngen2" colspan="1" rowspan="1">[1]  &#34;AI Power: Expanding data center capacity to meet growing demand&#34; (McKinsey &amp; Company)</td></tr><tr xmlns="http://www.w3.org/1999/xhtml"><td xmlns="http://www.w3.org/1999/xhtml" class="prngen2" colspan="1" rowspan="1">[2] SK Telecom and NVIDIA Build AI Infrastructure to Power Korea&#39;s AI Innovation (June 8, 2026) <a xmlns="http://www.w3.org/1999/xhtml" href="https://news.sktelecom.com/en/3124" target="_blank" class="prnews_a" rel="nofollow">https://news.sktelecom.com/en/3124</a>   SK Group and AWS Team Up to Build Cloud Computing Infrastructure to Support AI Innovation (June 22, 2025) <a xmlns="http://www.w3.org/1999/xhtml" href="https://news.sktelecom.com/en/1948" target="_blank" class="prnews_a" rel="nofollow">https://news.sktelecom.com/en/1948</a></td></tr></table></div> 



<img xmlns="http://www.w3.org/1999/xhtml" title="Cision" width="12" height="12" alt="Cision" src="https://edge.prnewswire.com/c/img/favicon.png?sn=CN98006&amp;sd=2026-07-04"></img> View original content:<a xmlns="http://www.w3.org/1999/xhtml" id="PRNURL" rel="nofollow" href="https://www.prnewswire.com/news-releases/sk-telecom-pursues-15gw-ai-data-center-buildout-aiming-to-become-asias-ai-infrastructure-hub-302817963.html" target="_blank">https://www.prnewswire.com/news-releases/sk-telecom-pursues-15gw-ai-data-center-buildout-aiming-to-become-asias-ai-infrastructure-hub-302817963.html</a>SOURCE SK Telecom

SK Telecom unveiled a plan to build up to 15GW of AI data center capacity, with 5GW staged by 2029 and led by SKT within SK Group. Backed by government AI G3 strategy and rising global demand for compute power, the initiative implies massive capex and potential partnerships, potentially positioning SKM as Asia's AI infrastructure hub over the long term.

SK Telecom Pursues 15GW AI Data Center Buildout, Aiming to Become Asia's AI Infrastructure Hub

AI Summary

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Trading Thesis

Market-Moving

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