Building Data Center Infrastructure in Ulsan with SK Group... Establishment of 'Ulsan AI Zone'
Ulsan Data Center to Begin Operations in 2027... Supporting AI Development
Amazon Web Services (AWS), the world's leading cloud provider, is partnering with SK Group to build a large-scale data center in Ulsan Metropolitan City. The two companies aim to establish the 'Ulsan Artificial Intelligence (AI) Zone' at this site and provide AI-optimized services.
On June 22, AWS announced that it has entered into a partnership with SK Group to create the Ulsan AI Zone and expand its cloud infrastructure in South Korea.
President Lee Jae-myung is participating in a commemorative ceremony with attendees at the launch ceremony of the Ulsan Artificial Intelligence (AI) Data Center held at the Ulsan Exhibition and Convention Center on the 20th. From the left, Minister An Deokgeun of the Ministry of Trade, Industry and Energy, Choi Minhee, Chair of the National Assembly Science, Technology, Information and Broadcasting Committee, Choi Tae-won, Chairman of SK Group, President Lee, Prasad Kalyanaraman, Head of Infrastructure at Amazon Web Services (AWS), Minister Yoo Sangim of the Ministry of Science and ICT, and Kim Doogeom, Mayor of Ulsan Metropolitan City. Photo by Yonhap News
The signing ceremony held on June 20 was attended by Prasad Kalyanaraman, Vice President of AWS Infrastructure Services; Jaime Valles, Vice President of AWS Asia Pacific and Japan; Ham Kiho, CEO of AWS Korea; Choi Taewon, Chairman of SK Group; and Yoo Youngsang, CEO of SK Telecom.
AWS plans to collaborate with SK Group to establish a data center for the new AWS AI Zone in Ulsan. Through this initiative, domestic organizations will be able to directly develop new AI applications in South Korea using AWS capabilities.
The AI Zone will include: ▲ AWS-exclusive AI infrastructure and servers equipped with world-class semiconductors ▲ UltraCluster networks to accelerate AI training and inference ▲ AWS services (such as Amazon SageMaker AI and Amazon Bedrock) ▲ AI application services (such as Amazon Q).
The Ulsan AI Zone will be supported by a 15-year partnership between AWS and SK Group, providing network operations, semiconductor supply chains, and power infrastructure. This partnership is separate from AWS's previously announced long-term investment plan to invest approximately $5.88 billion (about KRW 7.85 trillion) in South Korea by 2027.
The Ulsan data center is scheduled to begin operations in 2027. Depending on the scale and expansion of the data center, the two companies expect to create up to 78,000 direct and indirect jobs.
SK Group will be responsible for constructing the data center, while AWS will be in charge of establishing the Ulsan AI Zone. Through the AI Zone, AWS plans to provide its AI and cloud capabilities to Korean customers. Major SK Group affiliates participating in this project include SK Telecom, SK Broadband, SK Hynix, SK Gas, SK Chemicals, SK Multi Utility, and SK AX.
Ulsan, where the AI Zone will be located, is considered an ideal site for building cloud computing infrastructure due to SK Group's gas supply network, energy solutions, and optimal land. The city also offers favorable conditions for submarine cable construction and a business-friendly industrial environment.
The AI Zone to be established in Ulsan is designed to meet global standards for performance and security. It will feature AI-optimized computing systems, ultra-high-density rack configurations, a hybrid cooling system combining air and liquid cooling, and advanced network infrastructure.
Prasad Kalyanaraman, Vice President of AWS Infrastructure Services, stated, "By combining SK Group's outstanding technological capabilities with AWS's comprehensive AI cloud services, we will enable customers of all sizes and industries in Korea to build secure and enhanced AI technologies and use them to drive innovation. This partnership symbolizes AWS's commitment to Korea's AI future, and we look forward to the achievements we will accomplish together."
Choi Taewon, Chairman of SK Group, said, "We are pleased to combine SK Group's technological capabilities with AWS, the world's leading cloud company, to build core infrastructure for a Korean-style AI ecosystem and create a powerful new engine for the 'AI Highway.' Going forward, SK will continue to leverage the unique strengths of each affiliate and global partnerships to establish an AI data center hub in the Asia-Pacific region."
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