• SK Horizon will hold eight operating data centres and projects in Ulsan and Guro, with the portfolio targeted to reach 318MW
  • SK Telecom will retain 51% after the investment, while KKR takes 29% and the IMM consortium 20%

The fact

SK Telecom will split SK Broadband into two companies, carving its data-centre and submarine-cable businesses into a new entity, SK Horizon. It has signed definitive agreements for KRW3.08 trillion in equity investment from funds managed by KKR and the IMM Investment-Stonebridge consortium.

SK Horizon will hold eight operating data centres and projects under construction in Ulsan and Guro. The company is expected to expand the portfolio towards 318MW and will also take over the submarine-cable business. Once all investment phases are complete, SK Telecom will own 51%, KKR 29% and the IMM consortium 20%.

The spin-off is targeted for completion in the first quarter of 2027 and still requires shareholder and regulatory approvals. SK Telecom will continue to oversee the group's AI data-centre strategy, while SK Hyper, formed in July, will focus on new GW-scale developments.

The assessment

SK Telecom now has two different data-centre businesses to manage. SK Horizon will hold facilities that are already operating or under construction, while SK Hyper will work on the much larger projects that still need sites, power and customers before construction can begin.

That separation gives the two businesses different funding needs. KKR and IMM are investing in assets that already have operating or construction activity behind them. SK Hyper will need separate financing as individual projects move far enough through site acquisition, power arrangements and customer commitments to be built.

For BTW readers, the new structure makes SK Telecom's programme easier to judge. SK Horizon can be measured by commissioned capacity, utilisation and returns on the capital being invested, while SK Hyper should be judged by how many proposed sites become financed construction projects.

What to watch

Watch whether the spin-off closes in the first quarter of 2027 and how the KRW3.08 trillion is allocated across SK Horizon's portfolio. Commissioning at Ulsan and Guro, utilisation of existing facilities and any additional funding will show how the 318MW plan develops.