SK Telecom plans 15 gigawatts of AI data center capacity by 2035

SK Telecom plans to build up to 15 gigawatts of AI data center capacity by 2035, with the first 5 GW phase starting operations in 2029. The South Korean telecom operator, partnering with Nvidia on a joint AI project announced June 7, 2026, has established subsidiary SK Hyper and approved an initial investment of KRW 750 billion (about $506 million to $510 million) by 2030. The initiative aims to position South Korea as a regional AI computing hub, leveraging the country's semiconductor strengths from Samsung and SK Hynix.

SK Telecom plans 15 gigawatts of AI data center capacity by 2035 South Korea's largest telecom operator is partnering with Nvidia on a gigawatt-scale AI infrastructure push that could reshape Asia's data center landscape SK Telecom is betting big on becoming Asia’s AI infrastructure backbone. The South Korean telecom giant plans to build up to 15 gigawatts of AI data center capacity by 2035, a scale so enormous it rivals the total power consumption of some small nations. The first phase, targeting 5 GW of capacity, is scheduled to begin operations in 2029. The Nvidia connection and the money behind it SK Telecom’s parent company, SK Group, and Nvidia announced a joint AI project on June 7, 2026. The partnership centers on leveraging Nvidia’s DSX platform to construct gigawatt-scale AI cloud infrastructure. SK Telecom has already spun up a dedicated subsidiary called SK Hyper, established in July 2026, to lead the data center initiative. The company’s board approved an initial investment of KRW 750 billion, roughly $506 million to $510 million, to be deployed by 2030. Projected costs for a single 1 GW-class facility are estimated at around KRW 70 trillion. The initial operations will be based in Ulsan, with planned expansions into the Chungcheong and Honam regions. SK Telecom filed a 6-K report on June 30, 2026, outlining the full 15 GW expansion roadmap and detailing expected involvement from strategic partners. Why this matters beyond South Korea SK Telecom is framing this as “national infrastructure,” not just a corporate initiative. The goal is to position South Korea as a regional hub for AI computing. South Korea already punches above its weight in semiconductors, thanks to Samsung and SK Hynix. Adding massive AI data center infrastructure to that equation creates a vertically integrated AI supply chain that few nations can match. What this means for investors SK Telecom’s 6-K filing signals that additional strategic partners and customer contracts will shape the financing structure going forward. The risk side of the ledger isn’t empty. A 15 GW buildout by 2035 is extraordinarily ambitious. Power generation, grid capacity, regulatory approvals, and construction timelines all present execution risk. The initial $506 million to $510 million commitment is a fraction of the total capital required, and the financing for later phases remains preliminary. Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy https://cryptobriefing.com/editorial-policy/ .