SK Group and AWS to build Korea’s largest AI data center in Ulsan, insiders say

SK Group and Amazon Web Services (AWS) will jointly invest "several trillion won" to build a 100-megawatt AI data center in Ulsan, expected to become the largest AI-dedicated data center in Korea.

SK Chemicals' land location within the Mipo National Industrial Complex in Ulsan [SCREEN CAPTURE]

SK Group and Amazon Web Services (AWS) will jointly invest "several trillion won" to build a 100-megawatt AI data center in Ulsan, expected to become the largest AI-dedicated data center in Korea.

A launch event will take place this month to mark the start of construction on a "hyperscale" AI data center by SK Group, with a groundbreaking ceremony scheduled for August, according to insiders from the ICT industry on Sunday.

The data center will be built on SK Chemicals’ site within the Mipo National Industrial Complex in Ulsan. In the first phase, approximately 40 megawatts will become operational by November 2027, with the full 103 megawatts set for completion by February 2029.

The facility, which will be dedicated to graphics processing units (GPUs), will be the first of its kind in Korea and is expected to house approximately 60,000 GPUs. GPU servers used for training generative AI models typically consume over 20 times more power than standard servers, making the ability to secure a large and stable electricity supply essential for establishing an AI data center.

Located near SK Gas’s liquefied natural gas (LNG) combined heat and power plant, the selected site provides such optimal conditions. The cold energy generated when LNG is vaporized can also be used to cool the data center — another advantage.

In early March, SK Telecom CEO Ryu Young-sang announced at the Mobile World Congress (MWC) 2025 that the company would construct a hyperscale AI data center with 60,000 GPUs in partnership with global Big Tech companies. Following that announcement, SK Telecom and its subsidiary SK Broadband jointly purchased the site from SK Chemicals for approximately 28.3 billion won ($20.7 million).

SK Group’s total investment in the data center is projected to reach several trillion won. SK Telecom declined to comment further.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY KANG KWANG-WOO [yoon.soyeon@joongang.co.kr]