SK Telecom is carving out its data center operations into a standalone company called SK Horizon, fueled by KRW 3.08 trillion (roughly $2.2 billion) in equity investment from a consortium led by KKR and South Korean firms IMM Investment and Stonebridge. The deal gives SK Telecom a 51% controlling stake while handing KKR 29% and the IMM-Stonebridge consortium 20%.
The new entity will be spun off from SK Broadband, SK Telecom’s subsidiary, and is expected to be finalized in the first quarter of 2027 pending regulatory approvals.
What SK Horizon actually looks like
SK Horizon isn’t starting from scratch. The company inherits eight operational data centers with an initial capacity of 318 MW, plus additional facilities currently under construction. It also absorbs SK Broadband’s submarine cable business, giving it control over both compute infrastructure and the undersea connectivity that links it to the rest of the world.
SK Broadband CEO Kim Seong-soo will pull double duty, managing both SK Broadband and the newly formed SK Horizon.
SK Group, the broader conglomerate that SK Telecom belongs to, is targeting 5 GW of data center capacity by 2029 and 15 GW by 2035. For context, 318 MW is a respectable starting point, but 15 GW represents roughly a 47x increase.
Why KKR and IMM are betting billions
Negotiations for the external investment began in late 2025, initially focused on SK Telecom’s Ulsan AI data center project. Over time, the scope expanded into a full corporate spin-off.
KKR is no stranger to this corner of the market. In July 2026, the firm announced a $1.3 billion renewable energy platform deal with SK Inc., the holding company that sits atop the SK Group structure.
IMM Investment and Stonebridge, both prominent South Korean private equity firms, bring local expertise and capital networks that complement KKR’s global reach. Their combined 20% stake ensures that SK Horizon has deep roots in the domestic investment community.
The bigger picture for AI infrastructure in Asia
SK Telecom’s move fits into a broader pattern of telecoms and tech conglomerates restructuring to isolate and supercharge their data center operations. Spinning them off lets the parent company unlock that value while attracting specialized investors who might not otherwise buy into a diversified telecom.
The capacity targets tell the story of just how aggressively SK Group is thinking about this market. Reaching 5 GW by 2029 would place it among the largest data center operators in Asia. The 15 GW target for 2035 would put it in a league comparable to some of the biggest hyperscale operators globally.
The KKR-SK Inc. renewable energy partnership from July 2026 starts to look less like a standalone deal and more like a deliberate strategy to secure clean power for exactly this kind of buildout.