SK halts Daegu AI data centre project, mayor demands explanation

South Korean conglomerate SK announced it will abandon the construction of a high‑performance AI data centre in Daegu’s Suseong Alpha City. The project, originally covered by a 2023 investment and cooperation MOU and slated for completion in 2028 with a 40 MW power capacity, was dropped citing shifts in the investment and corporate operating environment.

Daegu Mayor Choo Kyung‑ho expressed strong regret, calling the decision a unilateral withdrawal of the agreement. He urged SK to provide an official stance and present alternative solutions to the city’s residents, and said he is awaiting a sincere response from the company.

The cancellation affects the local economy and raises concerns about the city’s AI and tech development plans.