Seoul: South Korean telecom giant SK Telecom (NYSE: SKM) is making one of its most ambitious bets on artificial intelligence infrastructure with the launch of SK Hyper, a wholly owned subsidiary dedicated to developing hyperscale AI data centers across South Korea.
The company’s Board of Directors has approved the creation of SK Hyper alongside an investment commitment of KRW 750 billion (approximately $550 million) through 2030, laying the foundation for what could become one of Asia’s largest AI infrastructure networks.
The move aligns with South Korea’s broader ambitions to become a global AI powerhouse while addressing the rapidly growing demand for computing capacity required to support generative AI, large language models (LLMs), and enterprise AI applications.
A Dedicated Vehicle for AI Infrastructure
SK Hyper has been established exclusively to lead the development of artificial intelligence data centers (AIDCs), with responsibility spanning the entire project lifecycle.
The new company will oversee:
- Site acquisition
- Customer acquisition
- Substation development
- Construction and operations
- Commercialization of AI data centers
SK Telecom will retain 100% ownership of SK Hyper while providing phased capital injections through 2030 within the approved investment framework.
According to the company, the name “SK Hyper” reflects its ambition to move beyond conventional infrastructure limits and build hyperscale AI computing capabilities capable of supporting next-generation digital services.
15GW AI Data Center Vision
SK Telecom has outlined an aggressive long-term roadmap that targets 15 gigawatts (GW) of AI data center capacity by 2035.
The rollout will begin with the first phase comprising 5GW of capacity by 2029, after which additional facilities will be developed based on market demand.
If achieved, the project would place SK Hyper among the region’s largest AI infrastructure developers as governments and technology companies race to secure high-performance computing resources.
Supporting South Korea’s AI Strategy
The initiative is expected to play a central role in supporting South Korea’s national AI ambitions, including government-backed efforts to establish large-scale AI infrastructure.
To accelerate execution, SK Telecom recently established an AIDC Integrated Development Division reporting directly to the CEO.
The division brings together SK Group’s AI infrastructure capabilities under a unified leadership structure, enabling faster project delivery and closer coordination across engineering, energy, and technology operations.
Regional Expansion Plans
SK Telecom plans to develop AI infrastructure across multiple regions in South Korea.
The initial rollout will begin with a gigawatt-scale AI data center cluster in Ulsan, followed by additional hyperscale facilities in the Chungcheong and Honam regions.
The distributed approach is intended to create a nationwide AI infrastructure network capable of supporting enterprise workloads, cloud computing, and future AI applications.
Leadership Appointment
Alongside the launch, SK Hyper’s Board appointed Chung Suk-geun as the company’s inaugural Chief Executive Officer.
Chung currently leads SK Telecom’s AI Company-in-Company (AI CIC) and also heads the AIDC Integrated Development Division, giving him responsibility for coordinating AI infrastructure initiatives across the broader SK Group.
His appointment reflects the company’s focus on leveraging experienced AI leadership to execute one of its largest infrastructure investments.
Commenting on the launch, Chung said:
“SK Hyper’s role is to turn SK Group’s blueprint for Asia’s AI Infrastructure Hub into reality. Through systematic and rapid execution, we will secure core infrastructure and customers, and contribute to Korea’s advancement as a global AI leader.”
AI Infrastructure Race Intensifies
The announcement comes amid an accelerating global race to build AI infrastructure.
As demand for generative AI services continues to rise, hyperscale data centers have become strategic assets for technology companies and governments alike. AI workloads require significantly greater computing power and energy capacity than traditional cloud infrastructure, driving unprecedented investment in specialized facilities.
Across Asia, countries including South Korea, Japan, Singapore, and India are investing heavily in AI-ready data centers to attract global technology companies and strengthen domestic AI ecosystems.
For SK Telecom, the launch of SK Hyper represents a strategic shift beyond telecommunications into AI infrastructure—a market expected to become a cornerstone of the digital economy over the coming decade.
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.