SK Telecom is betting big on becoming Asia’s AI infrastructure backbone. The South Korean telecom giant plans to build up to 15 gigawatts of AI data center capacity by 2035, a scale so enormous it rivals the total power consumption of some small nations.
The first phase, targeting 5 GW of capacity, is scheduled to begin operations in 2029.
The Nvidia connection and the money behind it
SK Telecom’s parent company, SK Group, and Nvidia announced a joint AI project on June 7, 2026. The partnership centers on leveraging Nvidia’s DSX platform to construct gigawatt-scale AI cloud infrastructure.
SK Telecom has already spun up a dedicated subsidiary called SK Hyper, established in July 2026, to lead the data center initiative. The company’s board approved an initial investment of KRW 750 billion, roughly $506 million to $510 million, to be deployed by 2030.
Projected costs for a single 1 GW-class facility are estimated at around KRW 70 trillion.
The initial operations will be based in Ulsan, with planned expansions into the Chungcheong and Honam regions. SK Telecom filed a 6-K report on June 30, 2026, outlining the full 15 GW expansion roadmap and detailing expected involvement from strategic partners.
Why this matters beyond South Korea
SK Telecom is framing this as “national infrastructure,” not just a corporate initiative. The goal is to position South Korea as a regional hub for AI computing.
South Korea already punches above its weight in semiconductors, thanks to Samsung and SK Hynix. Adding massive AI data center infrastructure to that equation creates a vertically integrated AI supply chain that few nations can match.
What this means for investors
SK Telecom’s 6-K filing signals that additional strategic partners and customer contracts will shape the financing structure going forward.
The risk side of the ledger isn’t empty. A 15 GW buildout by 2035 is extraordinarily ambitious. Power generation, grid capacity, regulatory approvals, and construction timelines all present execution risk. The initial $506 million to $510 million commitment is a fraction of the total capital required, and the financing for later phases remains preliminary.