SK Hyper seeks $350 billion for South Korean AI data center expansion

SK Telecom subsidiary SK Hyper has entered discussions with financial investors and technology firms to fund a massive 15-gigawatt data center buildout in South Korea, aimed for completion by 2035. The initial 5-gigawatt phase is estimated to cost approximately $350 billion, covering both infrastructure and equipment.

To support this expansion, SK Telecom’s board approved an initial KRW 750 billion investment through 2030 to secure land, build substations, and acquire foundational assets. The project will begin with a gigawatt-class cluster in Ulsan, followed by additional sites in the Chungcheong and Honam regions. SK Hyper intends to manage site procurement, construction, and commercial operations to meet national AI infrastructure goals while adjusting the pace of investment based on market demand.