Full Capabilities of SK Affiliates Including SK Hynix Mobilized
Collaboration with AWS and Ulsan City... Driving AI Innovation in Manufacturing
Stable Power Supply... Expansion to Gigawatt Scale
SK Telecom and SK Ecoplant announced on August 29 that they held a groundbreaking ceremony for the 'SK AI Data Center Ulsan,' which will be the largest AI-dedicated data center outside the Seoul metropolitan area, in partnership with Amazon Web Services (AWS) and Ulsan Metropolitan City.
Virtual image of 'SK AI Data Center Ulsan'. Provided by SK Telecom (This image is for illustrative purposes and may differ from the actual construction).
The ceremony, held in Ulsan Metropolitan City, was attended by Choi Changwon, Chairman of the SK Supex Council; Yoo Youngsang, CEO of SK Telecom; Kim Hyungkeun, CEO of SK Ecoplant; as well as other SK Group officials, Ulsan Mayor Kim Doo-gyeom, Shin Jaewon, Executive Director of AWS Korea, and over 200 participants. They pledged future business cooperation for the successful construction of the center.
The AI data center is an advanced IT infrastructure designed for high-performance AI computing, equipped with high power, cooling, and network capabilities. It utilizes high-density GPUs that consume more than 20 to 40 kW per server rack. Because it operates high-performance servers that require large amounts of power, the cooling capacity per server rack must also be 40 to 100 kW, which is four to ten times greater than that of a standard data center.
A server rack is a standardized frame that safely houses multiple server devices in a data center. In a typical data center, each server rack consumes an average of 5 to 10 kW of power.
SK AI Data Center Ulsan has enhanced performance and efficiency compared to existing data centers in several areas: AI computing-specialized architecture and systems, ultra-high-density rack configurations, a hybrid air and water cooling system, and a stable network infrastructure.
The center is expected to significantly contribute not only to the development of the domestic AI industry but also to the revitalization of the regional and national economy. Ulsan has been evaluated as the optimal location for this AI data center due to SK Group's stable gas supply network, energy solutions, and ideal site, as well as its advantageous position for submarine cables and its industry-friendly environment. Additionally, through AI-driven innovation in existing manufacturing, the project is expected to improve the industrial structure of the Ulsan region and provide a new growth opportunity for the city.
The project is particularly meaningful as it brings together SK Group's key subsidiaries, including SK Telecom, SK Broadband, SK Ecoplant, SK Gas, SK Chemicals, SK Multi Utility, SK Hynix, and SK AX, with major participation from both ICT and environment/energy affiliates, consolidating the group's full capabilities.
Chairman Chey Tae-won first met with Amazon CEO Andy Jassy in June last year, introducing SK Group's capabilities and initiating this collaboration. At that time, Chairman Chey emphasized, "SK is a rare company worldwide that can handle everything from semiconductors and energy to data center construction, operation, and service development," and added, "SK can be the optimal partner for AWS's AI-dedicated data center project in Northeast Asia." Since then, Chairman Chey met with CEO Jassy twice more to discuss cooperation, while SK's working-level teams held about 30 meetings, both in-person and virtual, until May this year to bring the project to fruition.
This project is expected to generate strong synergy among SK Group affiliates located near the AI data center, such as SK Gas and SK Multi Utility. The SK Multi Utility power plant, which receives LNG fuel from SK Gas, can supply stable electricity at a lower cost compared to Korea Electric Power Corporation. Efficient data center operations are possible through LNG combined heat and power generation, which also reduces greenhouse gas emissions.
SK Ecoplant, responsible for infrastructure construction, has conducted systematic preliminary reviews, including proposing optimal construction methods, establishing strategies for key equipment installation, building preliminary infrastructure, ensuring the stability of power, HVAC, and communications, and optimizing cooling system efficiency. By minimizing risks and delays during the construction and execution phases, SK Ecoplant plays a crucial role in the successful implementation of the project.
SK Ecoplant plans to solidify its position and lead the emerging AI data center market through this project. To foster the AI ecosystem, the company will accelerate the internalization of solutions in collaboration with other affiliates. SK Ecoplant can provide stable power infrastructure even in areas where securing large-scale power grids is difficult, thanks to its fuel cell-based power supply systems, and it also possesses proprietary cooling system technology (WHRC) that utilizes heat generated from fuel cells.
SK Telecom also aims to secure a key hub for its 'AI Infrastructure Super Highway,' promoting nationwide AI infrastructure expansion and strengthening global competitiveness. Through these efforts, the company intends to actively contribute to making South Korea one of the world’s top three AI powerhouses. The AI Infrastructure Super Highway strategy involves building nationwide AI infrastructure centered around three pillars: AI data centers, subscription-based GPUaaS, and edge AI.
At the event, SK Telecom signed a memorandum of understanding with Ulsan City to cooperate on revitalizing the local economy and creating jobs through the construction of the AI data center and attracting customers. The agreement also covers plans to expand the hyperscale AI data center into a gigawatt-level AI data center cluster in the future.
Choi Changwon, Chairman of the SK Supex Council, stated in his congratulatory remarks, "We are not simply constructing a building, but establishing the foundation of Korea's digital economy and building an essential infrastructure for the future. As a responsible partner, we will join Ulsan and Korea on their journey to becoming AI powerhouses."
Yoo Youngsang, CEO of SK Telecom, said in his commemorative speech, "The construction of 'SK AI Data Center Ulsan' will serve as a focal point for driving industrial innovation in the region and is also an opportunity for Korea to become the AI data center hub of the Asia-Pacific region."
Kim Hyungkeun, CEO of SK Ecoplant, stated, "We will do our utmost to realize SK Group's future growth strategy and contribute to the national initiative of building an AI data center cluster."
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