- SK Group begins constructing a large-scale data centre in Ulsan to support AWS’s AI infrastructure zone.
- The facility is expected to be completed by 2027 and will enhance South Korea’s cloud computing capabilities.
What happened: SK group partners with AWS for AI infrastructure in Ulsan
SK Group has launched a project to build a data centre in Ulsan, South Korea, aimed at supporting Amazon Web Services’ (AWS) new AI zone. The construction is part of a larger plan to develop AI-focused infrastructure in the southeastern industrial city. The facility will be located in the Ulsan Free Economic Zone (UFEZ) and will host hyperscale cloud servers to meet growing demand for high-performance computing.
The company has signed a memorandum of understanding with the Ulsan Free Economic Zone Authority to formalise cooperation. According to the Fast Mode report, the data centre will be developed by SK Ecoplant and managed by its digital infrastructure unit. Construction will start in 2025 and finish by 2027.
The facility aims to power AWS’s planned AI zone in Ulsan, which is set to provide advanced cloud services to enterprise users, startups and public sector organiZations.
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Why it’s important
This development signals a shift in South Korea’s approach to cloud and AI infrastructure. By aligning with AWS, SK Group strengthens its role in global cloud supply chains and leverages South Korea’s push for digital transformation outside of Seoul. Ulsan, previously known for shipbuilding and petrochemicals, is now repositioning as a tech and data hub.
Other major Korean firms, such as KT Corporation, have recently increased investments in data centres and cloud services. This reflects rising domestic demand and international interest in high-reliability hosting locations in East Asia.
SK Ecoplant’s involvement also shows how Korean conglomerates are diversifying their portfolios into digital infrastructure, away from traditional industries. According to UFEZ, the goal is to attract more AI startups and global tech firms into the region.
By choosing Ulsan, AWS may benefit from lower operating costs and strategic location advantages, compared with Seoul’s congested digital infrastructure landscape.
