Ha Min-Yong, Head of AI DC Business Division at SK Telecom/Broadband, shares insights on the tangible results and implementation of the company’s AI data center business – a core infrastructure driving innovation in the AI era. In this column, he discusses the significance of the “SK-AWS Ulsan AI Data Center Launch Ceremony” held in Ulsan on June 20th, outlines future plans, and presents the mid-to-long-term business strategy.

On June 20th, SK Telecom, together with Amazon Web Services (AWS) and SK Group affiliates, announced plans to build a hyperscale AI data center. In collaboration with AWS—the world’s leading cloud provider—the companies aim to construct Korea’s first and largest hyperscale AI-dedicated data center in Ulsan. This region was chosen due to SK Group’s extensive land resources and energy supply chain. With this partnership, SKT seeks to secure a pivotal hub for the “AI Infrastructure Super Highway” initiative.

Korea’s First and Largest Hyperscale AI-Dedicated Data Center

With the explosive growth of generative AI, data centers have evolved beyond traditional roles of data storage and processing to take on more advanced functions such as training and inference of AI models. In line with this trend, the Ulsan AI DC will be built as a specialized data center offering AI DC solutions in power consumption and heat management.

To support high-performance computing, the Ulsan AI Data Center will feature ultra-high-density racks and implement a hybrid cooling system that combines both air and liquid cooling for maximum energy efficiency. In addition, we will apply DCIM (Data Center Infrastructure Management) to optimize the AI DC operating environment. The Ulsan AI DC will not only secure hyperscale capacity but also be the first case of an advanced AI DC in Korea, a feat no domestic operator has attempted, which we expect will become a core competitive advantage for our data center business.

SKT’s AI Data Center Exhibit Booth at WIS 2025

Achievements Through Collaborative Efforts – “Independently yet Together” with SK Assets and Affiliates

(Power Supply) Recognizing that power is one of the most critical elements in building a data center, we have secured a large-scale, stable electricity supply from SK Multi Utility (SKMU)’s power plant in Ulsan. Located in Bukshin Port, Ulsan, SK Gas operates LNG terminals and LPG storage facilities, which serve as the foundation for SKMU—a subsidiary of SK Chemicals—to run a 300MW liquefied natural gas (LNG) combined heat and power (CHP) plant. Leveraging electricity from SKMU enables the Ulsan AI Data Center to benefit from a more cost-effective and energy-efficient power supply compared to the Korea Electric Power Corporation (KEPCO), offering a significant competitive advantage.

(Site) SK Broadband acquired a site previously owned by SK Chemicals in Ulsan, which will be used to build the data center. The site is not only sufficiently large enough for the construction of an AI data center but is also located within an industrial complex, therefore eliminating the risk of complaints from residents related to noise or electromagnetic waves. In addition, Ulsan has abundant land owned by SK Group’s energy and chemical affiliates, making it perfect for future GW-scale expansions.

(Network) Connectivity, another crucial factor for data centers, will also be secured reliably. The Ulsan AI Data Center will be connected to the Seoul metropolitan area through stable, high-speed dedicated lines (DCI, Data Center Interconnection) via SKT and SK Broadband’s nationwide network. It will also be connected to North America and the APAC region via SK Broadband’s submarine cable in Busan, providing ultra-high-speed global connectivity.

(Building and Construction Capability) The Ulsan AI Data Center will be built with the combined capabilities of SK Group’s affiliates in data center construction and development. The project will leverage SK Ecoplant’s extensive experience in data center construction, as well as SK AX’s IT-driven MEP (Mechanical, Electrical, and Plumbing) capabilities, to ensure a highly reliable facility. In addition, SK Broadband will draw on its more than 25 years of data center business and operational know-how to deliver optimal design and a stable, high-quality service environment.

“Why Ulsan?” – Business-Friendly Policies, Geographic Advantages, and a Manufacturing Hub – The Optimal Location for AI Data Centers

Traditional data centers have prioritized data storage and processing, making proximity to end-user companies in metropolitan areas a key consideration. In contrast, AI data centers focus on training and inference of AI models, which requires abundant power supply and large sites, global scalability, and seamless integration of AI into existing industries. Ulsan offers all these advantages, making it an ideal location for next-generation AI data centers.

① Proactive Support from Industry-Friendly Ulsan City
In the process of securing power and land for the Ulsan AI Data Center, we fast-tracked the required approvals for construction through close cooperation and communication with Ulsan City and the Korea Industrial Complex Corporation, along with other administrative procedures which were also jointly reviewed and swiftly completed.

② Geographic Advantage as an APAC AI Hub
Positioning Ulsan as the center of an AI data center cluster makes it possible to process AI training and inference workloads not only for Korea but also for neighboring countries. Located just 40 kilometers from Busan’s international submarine cable landing station, Ulsan offers excellent connectivity to the Asia-Pacific (APAC) region—providing an ideal foundation to emerge as the “APAC AI Hub.”

③ Re-emerging as the “Smart Manufacturing Capital”
By integrating AI with Ulsan, it creates significant opportunities for innovation in areas such as smart factories and process automation. The convergence of traditional manufacturing with AI positions Ulsan to become a driving force in Korea’s industrial transformation. In addition, the establishment of the AI data center is expected to promote collaboration among businesses, universities, and local government, accelerating the development of AI talent and the advancement of manufacturing AI technologies nationwide.

2030 Plan – Over 300MW AI DC Capacity and 1 trillion KRW in Revenue

Leveraging the advantages outlined above, we were able to secure AWS’s AI demand for the Ulsan AI Data Center after more than a year of negotiations. Meeting the high requirements of the world’s top hyperscaler in both the construction and operation of AI data centers will serve as a key track record for our future AI infrastructure business.

The Ulsan AI Data Center is scheduled to commence its initial operations in 2027. We plan to secure a total capacity of over 300MW by 2030, including the Seoul Guro Data Center, which is scheduled for completion by 2030. With increased utilization, we expect to generate annual revenue of around 1 trillion KRW from data centers alone. Our goal is to become Korea’s No.1 data center operator, and further down the line, our GW-scale expansion of the Ulsan AI Data Center will position Korea as the AI data center hub of the Asia-Pacific region.

Mid-to-Long-Term Strategy – SK AI DC’s Roadmap and Aspiration to Become an AI DC Solution Provider

Our roadmap and mid-to-long-term aspiration for the AI DC business will progress in stages.

First, by developing the Ulsan AI DC, we will conduct testing, validation, and solutionization, with the aim of creating an end-to-end packaged AI DC solution.

Ultimately, our goal is to become the leading “AI DC Solution Provider”—delivering the most cost-effective and efficient AI data centers, faster than anyone else, in both Korea and the APAC region using solution packages developed at the Ulsan AI Data Center.

In Phase 1, we aim to complete the end-to-end solution package for AI data centers, covering everything from design to operations.

In Phase 2, leveraging the completed SK solution, we will deliver data centers reflecting this solution, drive gigawatt-scale expansion in Ulsan and launch sovereign AI DCs for domestic growth, establishing ourselves as the No.1 AI DC operator in Korea and APAC.

In Phase 3, our ultimate objective is to enter global markets—including the U.S., APAC, and the Middle East—as a true AI DC Solution Provider and build a strong global presence.
Going forward, the SKT AI data center business will consolidate the assets and capabilities of group affiliates and serve as a core driver of our company’s new growth. We will continue advancing AI infrastructure and working towards truly monetizable AI.