SK Group and AWS to build Korea’s largest AI data center in Ulsan
Amazon Web Services (AWS) is partnering with the SK Group to build South Korea’s largest AI data center. The two companies are expected to launch the project later this month and will hold a groundbreaking ceremony for the 100MW facility in August, according to state news service Yonhap.
Scheduled to begin operations in 2027, the AI Zone will empower organizations in Korea to develop innovative AI applications locally while leveraging world-class AWS services like Amazon SageMaker, Bedrock, and Q. SK Group expects to bolster Korea’s AI competitiveness and establish the region as a key hub for hyperscale infrastructure in Asia-Pacific through AI initiatives.
AWS provides on-demand cloud computing platforms and application programming interfaces (APIs) to individuals, businesses and governments on a pay-per-use basis.The data center will be built on a 36,000-square-meter site in an industrial park in Ulsan, 305 km southeast of Seoul. It will be powered by 60,000 GPUs, making it the country’s first large-scale AI data center.
The facility will be located in the Mipo industrial complex in Ulsan, 305 kilometers southeast of Seoul. It will house 60,000 graphics processing units (GPUs) and have a power capacity of 100 megawatts, making it the country’s first AI infrastructure of such scale, the sources said.
Ryu Young-sang, chief executive officer (CEO) of SK Telecom Co., had announced the company’s plan to build a hyperscale AI data center equipped with 60,000 GPUs in collaboration with a global tech partner, during the Mobile World Congress (MWC) 2025 held in Spain in March.
SK Telecom plans to invest 3.4 trillion won (US$2.49 billion) in AI infrastructure by 2028, with a significant portion expected to be allocated to the data center project. SK Telecom- South Korea’s biggest mobile operator and 31% owned by the SK Group – will manage the project. “They have been working on the project, but the exact timeline and other details have yet to be finalized,” an SK Group spokesperson said.
The AI data center will be developed in two phases, with the initial 40MW phase to be completed by November 2027 and the full 100MW capacity to be operational by February 2029, the Korea Herald reported Monday. Once completed, the facility, powered by 60,000 graphics processing units, will have a power capacity of 103 megawatts, making it the country’s largest AI infrastructure, sources said.
SK Group appears to have chosen Ulsan as the site, considering its proximity to SK Gas’ liquefied natural gas combined heat and power plant, ensuring a stable supply of large-scale electricity essential for data center operations. The facility is also capable of utilizing LNG cold energy for data center cooling.
SKT last month released its revised AI pyramid strategy, targeting AI infrastructure including data centers, GPUaaS and customized data centers. It is also developing personal agents A. and Aster for consumers and AIX services for enterprise customers.
Globally, it has found partners through the Global Telecom Alliance, which it co-founded, and is collaborating with US firms Anthropic and Lambda.
SKT’s AI business unit is still small, however, recording just KRW156 billion ($115 million) in revenue in Q1, two-thirds of it from data center infrastructure. Its parent SK Group, which also includes memory chip giant SK Hynix and energy firm SK Innovation, reported $88 billion in revenue last year.
AWS, the world’s largest cloud services provider, has been expanding its footprint in Korea. It currently runs a data center in Seoul and began constructing its second facility in Incheon’s Seo District in late 2023. The company has pledged to invest 7.85 trillion won in Korea’s cloud computing infrastructure by 2027.
“When SK Group’s exceptional technical capabilities combine with AWS’s comprehensive AI cloud services, we’ll empower customers of all sizes, and across all industries here in Korea to build and innovate with safe, secure AI technologies,” said Prasad Kalyanaraman, VP of Infrastructure Services at AWS. “This partnership represents our commitment to Korea’s AI future, and I couldn’t be more excited about what we’ll achieve together.”
Earlier this month AWS launched its Taiwan cloud region – its 15th in Asia-Pacific – with plans to invest $5 billion on local cloud and AI infrastructure.
References:
https://en.yna.co.kr/view/AEN20250616004500320?section=k-biz/corporate
https://www.koreaherald.com/article/10510141
https://www.lightreading.com/data-centers/aws-sk-group-to-build-korea-s-largest-ai-data-center
