SK Telecom has established a new subsidiary, SK Hyper, to accelerate the development of large-scale AI data centers as demand for artificial intelligence infrastructure continues to grow. The telecommunications operator will invest 750 billion won through 2030 to support the new business, which aims to develop 15GW of AI data center capacity by 2035.
Approved by SK Telecom’s board of directors, SK Hyper will operate as a wholly owned subsidiary responsible for driving the company’s long-term AI infrastructure strategy. The new unit will oversee site acquisition, substation construction, customer engagement, and project commercialisation for future AI data centers across South Korea.
SK Hyper to Drive Large-Scale AI Infrastructure
SK Hyper has been created to accelerate the rollout of next-generation AI data centers, supporting both national digital infrastructure initiatives and the increasing computing requirements of AI applications. The subsidiary will coordinate the planning and development of large-scale facilities while strengthening SK Telecom’s position in the country’s expanding AI ecosystem.
As part of its roadmap, the company plans to commission 5GW of AI data center capacity by 2029 before expanding to 15GW by 2035, subject to market demand. Development will begin with a gigawatt-scale cluster in Ulsan, followed by additional projects in the Chungcheong and southwestern regions.
Investment Supports Long-Term Expansion
SK Telecom will provide capital to SK Hyper through equity investments as required until 2030, within the approved investment limit of 750 billion won. The funding will support land acquisition, power infrastructure, operational capabilities, and customer development necessary to deliver large-scale AI data centers.
The expansion reflects the growing importance of AI infrastructure in supporting cloud computing, enterprise AI services, and next-generation digital applications. By establishing a dedicated subsidiary, SK Telecom aims to streamline project execution while strengthening South Korea’s digital infrastructure.
Leadership to Accelerate Execution
SK Hyper has appointed Jeong Seok-geun as its first chief executive officer. He will continue leading SK Telecom’s AI initiatives while heading the AI Data Center Integration Task Force, which will coordinate AI data center execution across SK Group.
The creation of SK Hyper demonstrates SK Telecom’s long-term commitment to expanding AI data centers and supporting the country’s digital transformation. Through sustained investment and regional infrastructure development, the company aims to build scalable AI infrastructure capable of meeting future demand while strengthening South Korea’s position in the global AI economy.