SK Group is in discussions to attract investment from global big tech companies and financial investors for the construction of AI data centers. It is estimated that approximately 464 trillion won will be required just for the first phase, which involves building 5GW (gigawatts).
According to Bloomberg on Friday, Chung Seok-geun, CEO of SK Hyper, said in an interview with Bloomberg TV, "We are in discussions with many strategic and financial partners. We aim to build data centers in Korea to prepare for market demand."
SK Hyper has a plan to build a total of 15GW-scale data centers domestically by 2035. CEO Chung explained that 350 billion dollars (approximately 464 trillion won) is needed just for the first phase of 5GW construction, including equipment costs.
The structure involves cost-sharing between companies moving into the data center and external investors, rather than SK Group bearing the entire project cost alone.
SK Hyper plans to secure its first external funding by the end of this year or early next year, followed by additional fundraising efforts over the next three to four years. However, amid the spread of AI bubble theories, it has decided not to deploy the entire investment amount at once but to adjust the pace of investment according to actual demand.
CEO Chung said, "We will manage risks appropriately in line with market demand." This is because concerns are growing over whether profits commensurate with massive capital expenditure can be secured, even as global competition for AI infrastructure investment intensifies.
SK Hyper, established as a subsidiary of SK Telecom in July this year, plans to create a data center cluster of more than 2GW in the Yeongnam region, starting with the Ulsan AIDC (Artificial Intelligence Data Center). It also aims to build GW-scale data centers in the Chungcheong and Southwest regions to secure nationwide AI infrastructure.
Data centers will be operated in stages starting from 2029, expanding to a total of 15GW by 2035 following the construction of the first phase of 5GW, according to global customer demand. It is also consulting with the government to secure additional sites.
SK Telecom previously announced a plan to contribute up to 750 billion won in stages to SK Hyper by 2030. SK Group's strategy is to offset relatively high domestic electricity costs through improved computing efficiency by combining the technologies of its affiliates in the semiconductor, energy, and telecommunications sectors.
SK Hyper is targeting AI demand not only in Korea but also in Asian markets such as Japan and Taiwan. It is aiming to induce global tech companies to use Korea as a hub for AI training and service operations, and is also considering a business that provides integrated AI computing resources and AI models to governments in Asia and the Middle East.
The target for completing the initial data centers is 2029, but CEO Chung explained that revenue could be generated as early as next year.
in TECH
