SK Group's AI data centre plan with Big Tech gains momentum in Korea

SK Group's AI data centre collaboration with Big Tech is accelerating, says Chairman Chey Tae-won. SK is building a 7 trillion won facility in Ulsan with Amazon Web Services, part of a plan for 15 GW of AI infrastructure across South Korea.

SK Group’s cooperation with Big Tech companies on artificial intelligence (AI) data centres is gaining pace, said SK Group Chairman Chey Tae-won, as per a report by The Korea Herald. SK is developing an AI data centre in Ulsan in partnership with Amazon Web Services, which is expected to begin operations by the end of 2027. The 7 trillion won (USD 5.1 billion) project marks the first step in the group’s plan to build 15 gigawatts of AI infrastructure across South Korea.

“The data center plan has been in the works for less than a year, but progress has been quite fast,” Chey said at the 2026 Ulsan Forum at the Ulsan Exhibition and Convention Center, further noting that both he and other SK officials have continued meeting with Big Tech companies, Korea Herald reported.

Ulsan Facility and Electrification Solutions

According to Chey, the Ulsan facility has secured nearly 900 megawatts of capacity. He added that SK Innovation is developing electrification solutions for AI data centres and working with partners on investment plans to expand the business.

Sustainability and Profitable Business Models

Speaking at the forum, he said the AI industry’s next challenge is to develop profitable business models that can support continued investment. While he has previously identified speed, scale and safety as key requirements for AI competitiveness, Chey said business models and sustainability must now also be considered.

“There are concerns that AI could turn into a bubble if companies keep pouring in resources without seeing meaningful returns,” Chey said adding, “What ultimately matters is building a sustainable model in which AI generates profits that can be reinvested,” the report said. Chey also stressed the need for large-scale data platforms to accelerate manufacturing AI, adding that the chances of successful adoption increase as the scale of available data grows. “This is not an issue for Ulsan alone. It is a challenge for Korea as a whole,” he said.

Potential Energy Cooperation with Japan

Chey also highlighted energy as a potential area for deeper cooperation between South Korea and Japan, saying the two countries could reduce costs and strengthen energy security through joint purchasing, storage and utilisation. He added that cooperation could eventually extend to renewable energy, hydrogen and nuclear power, The Korea Herald noted. (ANI)

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