Laying the Foundation for Growth with an AI DC Harnessing Group Capabilities
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Becoming the APAC AI Hub through Collaboration with Global Big Tech
SK Group is set to embark on another quantum leap through its artificial intelligence data center (AI DC) initiative. Having started as a textile company in 1953, SK Group has already made three major quantum leaps: into petrochemicals in 1980, telecommunications in 1994, and semiconductors in 2012. Now, the group is aiming for a fourth leap, this time led by AI.
SK Chairman Chey Tae-won is examining a glass substrate at the SK exhibition booth set up at the 'CES 2025' event held in Las Vegas, USA, last January. Photo by SK
On June 20, at the Ulsan Exhibition and Convention Center (UECO), SK Group officially announced the construction of a hyperscale AI DC in collaboration with Amazon Web Services (AWS) and Ulsan Metropolitan City at the 'SK-AWS Ulsan AI DC Construction Agreement Ceremony.' According to the announcement on June 22, this Ulsan AI DC marks the first achievement since SK Group declared at last year's management strategy meeting that it would shift its investment focus toward the "near future," including AI and semiconductors.
Over the past two years, SK has improved its business structure by adhering to the principle of "selection and concentration," restructuring overlapping businesses, internalizing high-quality assets, and securing financial stability, thereby laying the groundwork for additional growth. Last year, SK Group also announced plans to invest 82 trillion won in AI and semiconductors by 2030 as part of this strategy.
The Ulsan AI DC will be the first and largest AI-dedicated data center in Korea. SK expects that, starting in 2027, the center will create employment opportunities for approximately 78,000 people.
The leap driven by AI is being spearheaded by SK Chairman Chey Tae-won. At the 'SK AI Summit' held in November last year, Chairman Chey emphasized, "To enable South Korea to play a leading role in the AI era, investment in AI infrastructure is essential," and highlighted that "SK Group is one of the few companies worldwide capable of everything from semiconductors and energy to building and operating data centers and developing services."
The Ulsan AIDC has been built to meet AWS's high technical requirements, featuring cooling and power systems specialized for AI data center operations. In the long term, it aims to become an eco-friendly data center that uses power generated from clean fuels. The construction of the Ulsan AIDC will incorporate advanced AI semiconductor technologies such as SK hynix's high-bandwidth memory (HBM), with SK Telecom and SK Broadband overseeing the overall construction and operation, leveraging the data center business capabilities they have accumulated over the past 25 years. Other affiliates, such as SK Gas and SK Multi Utility, will also participate in building infrastructure, power, and systems, lending further support.
The decision by AWS, the world's leading cloud provider, to partner with SK Group as its AI hub partner in the Asia-Pacific (APAC) region was driven by SK's comprehensive AI capabilities. SK Group and AWS have already established a strategic partnership and maintained a strong collaborative relationship in the AI sector. From 2027, over the next 15 years, the two companies plan to combine their strengths in data center construction, network operations, semiconductor supply chains, and energy infrastructure to provide a world-class AI and cloud environment.
Hyperscale AI DCs are key national security assets that can strengthen a country's "geotechnological position" amid technological hegemony competition and trade pressures. Considering that AI DCs typically operate for several decades, such large-scale investments by global big tech companies in Korea are a testament to the country's political and economic stability and growth potential. This is also expected to have a significant impact on economic and security cooperation between South Korea and the United States going forward.
SK plans to actively contribute to establishing South Korea as one of the world's top three AI powers by leveraging the group's AI capabilities and partnerships with big tech companies, starting with regional hubs and expanding AI infrastructure nationwide. The Ulsan AI DC will serve as a key infrastructure for industrial innovation and a manufacturing renaissance in Ulsan, a city centered on manufacturing. As AI infrastructure investment progresses, it is expected to attract related companies and create new jobs, thereby revitalizing both the regional and national economies. Furthermore, by promoting AI-driven innovations in manufacturing, such as AI-based digital twins and smart factories, the project is expected to improve the industrial structure of the Ulsan region and create new growth engines.
With the establishment of a large-scale AI DC, the number of global big tech companies and domestic AI startups coming to Ulsan is expected to increase significantly. Collaboration between AI-related companies and local universities and research institutes in Ulsan is also expected to become more active, leading to various industry-academia cooperation projects such as talent development and joint research. SK plans to expand AI innovation hubs nationwide, starting with Ulsan, to help South Korea become one of the world's top three AI powers.
Going forward, SK Group's strategy is to accelerate its "fourth quantum leap" by integrating AI into all business activities and daily operations of its affiliates, including AI agents, robotics, manufacturing AI, energy, and AI-based bio.
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