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South Korea is moving to expand its AI infrastructure base through a series of projects covering data centres, semiconductors, and robotics. SK Telecom plans to build up to 15GW of AI data centre capacity.
The plan follows a set of South Korean “mega projects” covering semiconductors, physical AI, and AI data centres. Samsung Electronics, SK Group, and government ministries outlined the investment plans at an event on Monday, according to Reuters.
The projects cover several parts of AI infrastructure. Samsung and SK Hynix are tied to semiconductor production, while SK, GS Group, Naver, and SK Telecom are connected to AI data centre development. SKT has said AI data centre infrastructure depends on semiconductors, energy solutions, and data centre construction and operations.
South Korea’s government said SK, GS Group, and Naver plan to invest about 550 trillion won in an initial phase to build a combined 8.4GW of AI data centre capacity. Construction is targeted to begin by the first half of 2028.
The country’s science minister said the total investment could exceed 1,000 trillion won by around 2035. SK Telecom said in a regulatory filing that it is considering funding structures involving strategic partners, including global technology companies and overseas capital.
The 8.4GW figure refers to the initial AI data centre capacity planned by SK, GS Group, and Naver. SKT’s 15GW target refers to the telecoms company’s longer-term AI data centre plan.
SKT outlines 15GW data centre plan
SKT said its own AI data centre project will be developed in stages and linked to the government’s AI G3 strategy, which SKT described as a goal of becoming one of the world’s three leading AI powers alongside the US and China.
The company said the project will cover site selection, power supply, operations, and customer demand. It is also assessing how the buildout can support the government’s regional development goals.
The first phase will build on the AI data centre already under construction in Ulsan. SKT plans to develop more than 2GW of capacity across the southeastern Gyeongsang region, with Ulsan serving as the base for the cluster.
The company also plans to add 1GW of capacity in the southwestern Jeolla region. Together, these projects would bring SKT’s domestic AI data centre capacity to 5GW, with staged openings planned from 2029.
SKT said the full buildout could eventually reach 15GW. The company did not provide a complete timeline for the remaining 10GW of planned capacity.
Funding, power, and cooling
According to SKT, a typical 1GW-class AI data centre could require about KRW 70 trillion, due to the cost of high-performance computing infrastructure and rising memory prices.
SKT did not provide a total cost estimate for the 15GW plan. The company provided the 1GW estimate as a reference for gigawatt-scale AI data centre construction.
The company said funding for its planned projects is expected to come from a combination of its own investment, strategic partner investment, long-term customer contracts, and project financing.
SKT cited a global data centre capacity shortage in its announcement. It referred to McKinsey & Company forecasts that global data centre demand will grow 19% to 22% annually, with supply unable to keep pace.
McKinsey has forecast that global data centre demand could reach 171GW to 219GW by 2030. SKT cited the forecast and said the US alone could face a shortfall of about 15GW by 2030.
SKT said South Korea has factors relevant to AI data centre development, including high-bandwidth memory production, nuclear and liquefied natural gas-based power supply, and experience operating large-scale semiconductor facilities.
The International Energy Agency’s Base Case projects global data centre electricity consumption to double to around 945 TWh by 2030, with AI the main driver alongside other digital services.
Uptime Institute has said operators face challenges delivering power and cooling to very high-density cabinets. Its survey found that 29% of operators are upgrading existing data hall space to support high-performance IT systems.
Chip investments support the wider buildout
Reuters reported that Samsung plans to invest 400 trillion won in new semiconductor fabs in Gwangju and 56 trillion won in advanced high-bandwidth memory fabs in Cheonan and Onyang.
Samsung also said in a regulatory filing that it plans to invest 2,450 trillion won domestically between 2026 and 2040 to strengthen future growth businesses. Of that amount, 2,100 trillion won is allocated to semiconductor clusters, including Pyeongtaek and the Yongin industrial complex.
SK Group said it has long-term plans for semiconductor projects worth about 1,100 trillion won, and AI data centre projects worth about 1,000 trillion won. Chairman Chey Tae-won said the group expects to invest more than 100 trillion won a year on average in South Korea over the next decade.
SK Hynix plans to complete the fourth fab at its Yongin semiconductor cluster by 2033, 12 years earlier than its previous 2045 target. The company also plans to invest 400 trillion won in a new chip production base in the country’s southwest, with execution staged according to market demand and board approvals.
SK Group’s affiliates are expected to support the AI data centre project across semiconductors, energy, and data centre construction and operations. SKT said it will lead the design, construction, and operation of the planned facilities.
SKT has announced AI data centre projects and partnerships with global technology companies. At SK AI Summit 2025, President and CEO Jung Jai-hun outlined a roadmap that included scaling the Ulsan AI Data Center to more than 1GW.
The company has also announced plans to operate an “AI Factory,” which it describes as a next-generation AI data centre. Operations are scheduled to begin in 2027, with plans to expand the facility to gigawatt scale.
Robotics included in national AI plan
South Korea’s wider plan also covers physical AI and robotics. The government aims to support industry-specific AI robots, Korean physical AI foundation models, data factories, and the training of 10,000 AI robotics specialists over five years.
SKT said AI data centres could also be linked to regional industries as part of South Korea’s regional development plans.
“This AI data centre project is aimed at preemptively preparing the computing infrastructure that the global AI ecosystem needs,” said Jung Jai-hun, President and CEO of SKT. “We will work closely with the government, industry, and local communities to help Korea grow into Asia’s core AI infrastructure hub.”
(Photo by Erik Mclean)
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