• SK Telecom will invest US$91.5bn to build up to 15GW of AI data centre capacity in South Korea by 2035
  • The investment shows AI competitiveness increasingly depends on national infrastructure, power, and semiconductor ecosystems

The fact

SK Telecom has announced plans to invest 140 trillion won (US$91.5 billion) to develop AI data centres across South Korea, targeting 15GW of capacity by 2035. The first phase aims to deliver 5GW by 2029 and will require around 2.5 million square metres of land, 3 million GPUs and 2.4 million high-bandwidth memory (HBM) units.

The company's board has approved the business plan, although the investment schedule, funding structure, and financing partners remain under review. SKT said it is exploring strategic partnerships with global technology companies and international investors as the programme moves forward.

The first 100MW AI data centre in Ulsan is scheduled to begin operations in late 2027. SKT also plans to expand beyond traditional colocation by offering GPU-as-a-Service, reflecting the higher computing and power requirements of AI infrastructure.

The assessment

AI infrastructure is increasingly becoming a matter of national capacity rather than individual projects. Building competitive AI ecosystems now depends not only on data centres but also on reliable power, semiconductor supply chains, and long-term investment.

SKT's programme reflects this shift. South Korea already has strengths in advanced semiconductors and high-bandwidth memory, but maintaining its AI competitiveness will require those advantages to be matched by sufficient computing capacity and supporting infrastructure. The scale of the proposed investment illustrates how AI development is becoming closely tied to national infrastructure planning.

For BTW readers, the announcement reflects a broader change in digital infrastructure strategy. Countries that can coordinate data centres, power systems and semiconductor ecosystems will be better positioned to attract AI investment. Competitive advantage will increasingly depend on building integrated infrastructure rather than individual facilities.

What to watch

Watch how SKT finalises its funding structure and strategic partnerships as the programme moves towards construction. Progress on the Ulsan project, power availability and the first 5GW deployment phase will indicate whether South Korea can deliver AI infrastructure at the planned scale.