SK Group and Amazon join forces to build AI data center in Korea
- SK Group will collaborate with Amazon Web Services to build a large AI data center in Ulsan, South Korea, investing a total of $5.1 billion.
- The data center is expected to feature 60,000 graphics processing units, with a plan to scale its capacity significantly by 2029.
- This project is anticipated to boost both local and national economies by enhancing technological capabilities and capacity in cloud computing.
On June 16, 2025, South Korea's SK Group announced a partnership with Amazon Web Services (AWS) to construct a large-scale artificial intelligence data center in Ulsan, located approximately 250 miles southeast of Seoul. This ambitious project involves a substantial investment of $5.1 billion, with plans to build a 41-megawatt data center by 2027, later expanding to 103 megawatts by 2029. The Ulsan Metropolitan City government is facilitating this venture, underlining the strategic importance of the site and the anticipated economic boost it could provide. Following approval in May, SK Telecom, an integral subsidiary of SK Group and the largest mobile operator in South Korea, is expected to spearhead this joint endeavor with AWS. This project was first mentioned publicly during the Mobile World Congress held in March in Barcelona, where SK Telecom's CEO Ryu Young-sang unveiled plans to implement cutting-edge infrastructure featuring a staggering 60,000 graphics processing units. Such a massive deployment of GPUs is intended to underpin advanced AI applications and data processing capabilities. In preparation for the center, SK Telecom and its affiliate SK Broadband recently secured a 387,500-square-foot site, equivalent to about seven football fields, within an industrial complex in Ulsan. This site was chosen not only for its size but also due to its proximity to an existing liquefied natural gas-combined heat and power plant operated by another SK Group unit, SK Gas. This installation is crucial, as mega-scale data centers demand significant electrical resources, making the plant’s presence an important logistical factor. The groundbreaking ceremony for the data center is slated for late August or September this year, marking the beginning of what is expected to be a transformative project for the region and beyond. The officials at Ulsan have expressed their commitment to support the project with the necessary resources and personnel, illustrating the project's significance for local development. Once completed, the data center is anticipated to enhance South Korea's status as a key player in the global cloud computing market, as well as augment the operational capabilities of both SK Group and AWS in delivering innovative AI solutions.