What's Happening?
SK Telecom has announced a strategic expansion of its artificial intelligence data center (AIDC) initiative, aiming to position South Korea as a leading AI hub in Asia. The company plans to expand its Ulsan
AI data center to a 1 GW-scale capacity, supported by energy-specialized solutions. This expansion is part of a broader strategy to develop nationwide and global AIDC hubs, with new projects planned in Korea's southwest and Vietnam. SK Telecom's CEO, Jung Jaihun, unveiled this strategy during the SK AI Summit 2025, highlighting the company's ambition to internalize the design, build, and operation processes of AIDC, and to commercialize advanced AIDC solution packages. The company has also formed partnerships with Amazon Web Services (AWS) and Nvidia to accelerate AI innovation, focusing on Edge AI, AI-RAN, and manufacturing AI cloud technologies.
Why It's Important?
The expansion of SK Telecom's AIDC initiative is significant as it positions South Korea as a central player in the global AI infrastructure landscape. By developing large-scale AI data centers and forming strategic partnerships with global tech giants like AWS and Nvidia, SK Telecom is enhancing its capabilities in AI technology and infrastructure. This move is expected to attract foreign investment and foster innovation in AI applications, potentially benefiting various sectors such as telecommunications, manufacturing, and energy. The initiative also underscores the growing importance of AI in redefining telecom networks and services, offering new opportunities for telecom operators to integrate AI solutions into their infrastructure.
What's Next?
SK Telecom plans to continue its expansion into Southeast Asia, starting with Vietnam, where it will partner with SK Innovation to build an LNG-powered AIDC. The company aims to leverage its nationwide infrastructure to bridge the gap between AIDC and on-device AI through Edge AI and AI-RAN technologies. Additionally, SK Telecom intends to consolidate its AI operations under a new AI company-in-company (AI CIC) structure, further accelerating its transition towards an AI-centered business model. These developments are likely to influence the competitive landscape in the AI and telecom sectors, prompting other companies to enhance their AI capabilities and infrastructure.
