An SK Telecom rendering of the planned SK AI Data Center in Ulsan (SK Telecom)
An SK Telecom rendering of the planned SK AI Data Center in Ulsan (SK Telecom)

SK Telecom and SK Ecoplant began construction of a new artificial intelligence data center in Ulsan on Friday, in partnership with Amazon Web Services and the city government, aiming to build South Korea’s largest AI facility outside the capital region.

SK Group has positioned the project as a new growth pillar, with Chair Chey Tae-won calling it the conglomerate’s “fourth quantum leap” after energy, information and communication technology and semiconductors.

“This project is not just about putting up a building, but about laying the foundation of Korea’s digital economy and building its future,” SK Supex Council Chair Chey Chang-won said. “SK will remain a responsible partner and stand with Ulsan and the nation throughout the journey to becoming an AI powerhouse.”

According to SKT, more than 200 people attended the groundbreaking ceremony in Ulsan, including the SK Supex Council chairperson, SK Telecom CEO Ryu Young-sang, SK Ecoplant CEO Kim Hyung-keun, Ulsan Mayor Kim Doo-gyeom and AWS Korea Executive Shin Jae-won.

The center, initiated in June upon a contract signed between SK and AWS, will bring together a wide range of SK affiliates, including SK Broadband, SK Gas, SK Chemicals and SK hynix, combining ICT, energy and environmental capabilities across the group, SKT said.

Designed to handle high-density AI workloads, the facility will host GPU-powered server racks consuming 20-40 kilowatts each — compared with 5-10 kW for typical data — and require hybrid cooling systems capable of 40-100 kW per rack.

SK said the Ulsan site will feature ultradense rack layouts, hybrid air-and water-cooling and reinforced networks, targeting global top-tier efficiency and performance.

Ulsan was chosen for its stable gas supply, subsea cable access and manufacturing base. The city expects the project to fuel an “industrial renaissance” through AI-driven digital twin and smart factory applications, while creating jobs and attracting corporate residents.

SK affiliates will also contribute operational synergies. SK Gas will supply liquefied natural gas to SK Multi Utility, which will provide cheaper, stable electricity through a combined heat and power plant, improving both efficiency and its carbon footprint. SK Ecoplant will lead the construction, overseeing design, power and cooling systems.

Ryu of SKT called it a “launch pad for Asia-Pacific AI leadership,” while Kim of SK Ecoplant said the company aimed to secure a lead in AI infrastructure construction.

SKT plans to make the facility a core node of its “AI Infrastructure superhighway,” linking data centers nationwide with GPU-as-a-service and edge AI networks, as part of Korea’s ambition to rank among the world’s top three AI powers, the mobile carrier said.


herim@heraldcorp.com