SK Group has started building an AI data center in Ulsan, which is set to be the largest of its kind outside the Seoul area, in partnership with Amazon Web Services (AWS).

The groundbreaking ceremony was held on August 29, 2025 with executives from SK Telecom, SK ecoplant, AWS, and Ulsan city officials.

The facility is planned to open with 40 megawatts of capacity by 2027, expanding to 100 megawatts within two years.

It will use GPU-based high-density servers and advanced cooling systems to handle intensive AI workloads.

SK Group will manage the facility’s infrastructure, while AWS will operate the servers and oversee customer management.

The center is part of a broader effort to build AI infrastructure across Korea, aligning with government initiatives.

Ulsan was chosen due to its strong energy infrastructure and proximity to subsea cables.

SK ecoplant will handle construction, and SK Multi Utility will supply power through a nearby 300-megawatt gas power plant.

🔗 Source: The Korea Times

🧠 Food for thought

1️⃣ South Korea’s strategic AI infrastructure buildup spans nearly a decade

SK’s Ulsan data center represents the latest phase in South Korea’s systematic approach to AI infrastructure that began in 2016.

Following Google DeepMind’s AlphaGo victory over a human champion, South Korea announced an $860 million national AI investment to avoid falling behind in global AI development2.

This early recognition of AI’s strategic importance has evolved into concrete infrastructure projects, with SK’s facility designed to be a cornerstone of the government’s nationwide “AI highway” initiative.

The progression shows how South Korea transformed initial competitive concerns into long-term infrastructure planning, positioning the country to capture economic benefits from AI adoption across industries.

The Ulsan project specifically targets becoming a key hub for this national AI infrastructure network, demonstrating how private sector partnerships can advance broader national technology goals.