SKT Establishes SK Hyper and Lays out AI Data Centers

SK Telecom (SKT) is establishing a new subsidiary, SK Hyper, focused on developing AI data center (AIDC) business for Korean operators.

The SKT board of directors has approved the establishment of SK Hyper, committing to investing a total of KRW 750 billion (USD 510.4 million) by 2030 to lay the foundation for the business.

This announcement comes just three weeks after the South Korean government announced its plan to build AIDC nationwide, with the goal of achieving a total of 18.5 GW of IT capacity by 2035. SK Group, led by SKT, will develop the largest share of AIDCs -15 GW. These centers are positioned as “token factories” that will produce raw AI intelligence rather than serving as passive storage units.

The construction of AIDC is one of the three major mega projects under the South Korean government’s new industrial strategy, which aims to elevate South Korea to a global AI and technology powerhouse by 2035. The other two mega projects focus on semiconductors and physical AI, especially in the field of robotics.

SK Hyper will focus on business development to achieve the goal of building 15 GW of AIDC capacity in the medium to long term. The company will be responsible for site selection, construction and operation of substations, customer acquisition, and commercialization of AIDC business.

The newly appointed CEO of SK Hyper, Chung Suk geun, stated in a statement that SK Hyper’s role is to turn SK Group’s blueprint for building an AI infrastructure hub in Asia into reality. Through systematic and rapid execution, we will ensure core infrastructure and customers, and contribute to Korea’s entry into the AI G3.”

Chung currently serves as the head of SKT AI CIC (an internal company), which was established in September 2025 with the aim of integrating SKT’s AI capabilities under one roof. He also leads SKT’s newly established AIDC comprehensive development department, responsible for connecting SK Group’s AIDC execution organization and accelerating project delivery.

Phased construction

With the establishment of the new company, SKT is expected to accelerate the construction of AIDC to support the government’s mega projects. SK Hyper plans to open 5 GW of AIDC capacity in phases, starting from 2029.

According to SK Telecom (SKT), SK Hyper will build AI infrastructure by region. They will first construct a GW-level AIDC cluster in Ulsan and then expand more GW-level AIDCs in the Central and Hunan regions.

SKT plans to achieve a phased capacity of 15 GW in response to market demand and other factors.

Considering market demand and other factors, SKT plans to gradually expand its capacity to a total of 15 GW by 2035.

Meanwhile, SKT will hold 100% of the equity in SK Hyper and provide capital contributions in stages as needed until the approved investment cap is reached by 2030.