South Korea’s SK Group and AWS team up on AI infrastructure
Chey Tae-won says SK Group is ‘uniquely positioned’ for AI infrastructure leadership.
South Korean conglomerate SK Group has joined forces with Amazon Web Services (AWS) to invest 7 trillion won (approximately $5.1 billion) in building a large-scale AI data centre in Ulsan, South Korea. The project aims to bolster the country’s AI infrastructure over the next 15 years.
According to South Korea’s Ministry of Science and ICT, the facility will begin construction in September 2025 and is expected to become fully operational by early 2029. Once complete, the Ulsan Centre will have a power capacity exceeding 100 megawatts. AWS will contribute $4 billion to the project.
SK Group stated on Sunday that the data centre will support Korea’s AI ambitions by integrating high-speed networks, advanced semiconductors, and efficient energy systems. In a LinkedIn post, SK Group chairman Chey Tae-won said the company is ‘uniquely positioned’ to drive AI innovation.
They highlighted the role of several SK affiliates in the project, including SK Hynix for high-bandwidth memory, SK Telecom and SK Broadband for network operations, and SK Gas and SK Multi Utility for infrastructure and energy.
The initiative is part of SK Group’s broader commitment to AI investment. In 2023, the company pledged to invest 82 trillion won by 2026 in HBM chip development, data centres, and AI-powered services.
The group has also backed AI startups such as Perplexity, Twelve Labs, and Korean LLM developer Upstage. Its chip unit, Sapeon, merged with rival Rebellions last year, creating a company valued at 1.3 trillion won.
Other major Korean players are also ramping up AI efforts. Tech giant Kakao recently announced plans to invest 600 billion won in an AI data centre and partnered with OpenAI to incorporate ChatGPT technology into its services.
The tech industry in South Korea continues to race towards AI dominance, with domestic firms making substantial investments to secure future leadership in AI infrastructure and applications.
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