TLDR: SK Group has officially partnered with Amazon Web Services (AWS) to build South Korea’s largest artificial intelligence (AI) data center in Ulsan. This multi-billion dollar initiative, set to begin construction in August 2025, will feature a 103-megawatt facility housing 60,000 GPUs, significantly boosting the nation’s AI infrastructure and aiming to position South Korea as a global leader in AI.
SEOUL, South Korea – SK Group, one of South Korea’s leading conglomerates, has announced a landmark partnership with Amazon Web Services (AWS) to establish the nation’s largest and most powerful artificial intelligence (AI) data center. This strategic collaboration underscores a significant push to advance South Korea’s AI capabilities and solidify its position as a global hub for AI innovation.
The ambitious project will see the construction of a massive AI data center in Ulsan’s Mipo National Industrial Complex. Construction is slated to commence in August 2025. The facility will be developed in phases, with the initial stage, boasting a capacity of 40 megawatts (MW), expected to be operational by November 2027. The full 103 MW capacity, designed to house an impressive 60,000 graphics processing units (GPUs), is projected to be completed by February 2029. This scale makes it four times larger than the national AI computing center currently planned by the South Korean government, which is designed for 15,000 GPUs.
The partnership involves substantial financial commitments from both sides. AWS is reportedly investing $4 billion into the project. SK Group’s key subsidiaries, including SK Telecom, SK Broadband, SK Hynix, and SK Gas, will contribute significant resources. Notably, SK Telecom and SK Broadband have already pledged 3.4 trillion won (approximately $2.5 billion USD) towards AI-related initiatives by 2028, with a substantial portion earmarked for this data center.
SK Group Chairman Chey Tae-won and SK Telecom CEO Ryu Young-sang have been instrumental in forging this alliance, alongside AWS representatives like Prasad Kalyanaraman. The selection of Ulsan as the site is strategic, primarily due to its proximity to SK Gas’ liquefied natural gas (LNG) combined heat and power facility, ensuring a stable and robust power supply crucial for the energy-intensive operations of an AI data center. The facility will also leverage LNG cold energy for efficient cooling.
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Industry officials anticipate a significant economic impact from this venture, projecting an economic value of 25 trillion won (approximately $18.3 billion USD) and the creation of 78,000 new jobs. This initiative aligns with South Korea’s broader national strategy to accelerate its AI infrastructure development and become a world leader in AI technology. The Ulsan facility is poised to be a cornerstone of this national ambition, providing critical infrastructure for advanced AI training and inference, and supporting the development of innovative AI applications across various sectors.
