SKT to Invest $91.5 Billion in South Korea AI Data Centres

South Korea's leading telecom operator, SK Telecom (SKT), has announced plans to invest US$91.5 billion in building new AI data centres across the country. The company says the move is "strategically important" as global demand for AI model training and processing continues to grow rapidly.

SKT said South Korea's location is attractive to global tech companies for AI data centres due to stable power supply and the country's role as a base for High Bandwidth Memory (HBM) production.

The company plans to build a total AI data centre capacity of 15 gigawatts (GW) by 2035. Under this plan, 5 GW of capacity will be opened gradually starting in 2029, with an additional 10 GW possibly added later depending on market demand and progress.

Reports suggest the initial 5 GW phase alone will require around 2.5 million square meters of land, close to 3 million GPUs, and 2.4 million HBM units.

SKT explained that AI data centres are different from regular data centres, as they "produce AI intelligence" using high-density power and advanced cooling systems that connect large numbers of GPUs together.

The company said its business model will move beyond simple space and power rentals toward services like GPU-as-a-Service (GPUaaS), offering high-performance AI computing through the cloud.

SKT will follow a two-part revenue model — an AI-specialised co-location business for technology companies, and an AI computing cloud business offering direct access to computing resources such as GPUs.

The company is also reviewing financing options, which may include partnerships with big tech firms and overseas investors.

Speaking at a joint press briefing with South Korean President Lee Jae Myung, SKT CEO Jung Jai-hun said the data centres could help turn the region into a hub for AI-based manufacturing when combined with local manufacturing capabilities.

SKT's board has approved the announcement of the business plan, but the company said the final investment size, timeline, and funding structure are still under review and may change. Further details will be shared once finalised, according to SKT.

The investment appears to be part of a larger 312 trillion won package involving other major Korean companies, including Hanwha Group, Hyundai, and Samsung, aimed at strengthening the country's chip and AI supply chain.

Industry experts believe the scale of this project could tighten the near-term supply of AI accelerators and memory chips, adding pressure to an already stretched global supply chain.

The announcement comes amid a broader wave of AI infrastructure investments across the telecom sector, with analysts forecasting global data centre spending to cross US$1 trillion.

Source: [telecoms]