SK Telecom to expand Ulsan AI data center to 1 GW

SK Telecom will expand its AI data center (AIDC) in Ulsan, South Korea, to a 1 GW-scale facility as it targets the Asian market.

The company plans to use energy-focused AIDC solutions and develop hubs in key regions including the Seoul metropolitan area, southern Ulsan, and the southwest, after a memorandum of understanding signed in October 2025 for a new facility.

SK Telecom, which is listed on the NYSE, also plans to build an LNG-powered AIDC in Vietnam with SK Innovation.

The firm is strengthening its AI infrastructure through partnerships with Amazon Web Services and NVIDIA, aiming to advance technologies like Edge AI and AI-RAN.

SK Telecom plans to acquire over 2,000 NVIDIA GPUs to support a Manufacturing AI Cloud for SK Group’s manufacturing operations.

The company aims to oversee AIDC projects from design to operation, and will commercialize AIDC solution packages to streamline future construction.

🔗 Source: SK Telecom

🧠 Food for thought

Implications, context, and why it matters.

SK Telecom’s 1 GW AIDC plan leans on Ulsan power and Power Purchase Agreements (PPAs)

The 1 GW target rests on electricity from SK Multi Utility (an SK Group utility affiliate) via a 300 MW Liquefied Natural Gas (LNG) combined heat and power plant in Ulsan, cheaper than Korea Electric Power Corporation (KEPCO)’s grid 1.
Ulsan offers manufacturing depth with pro‑business rules plus infrastructure inside an industrial complex 1. The site buffers noise and electromagnetic wave concerns 1.
Reaching 1 GW needs more power than the 300 MW plant can supply 2. SK Telecom must work through South Korea’s PPA market with ancillary costs, overlapping network fees, and KEPCO control 2.
The plan targets over 300 MW of AI data center capacity by 2030 and 1 trillion Korean won (KRW) annually, which depends on long‑term PPAs as the renewable PPA market matures 1.

Renewable developers can win deals via corporate PPAs

Independent renewable developers plus infrastructure investors can seek multi‑year corporate PPAs with SK Telecom as it grows in Ulsan, Seoul metro, and southwest 1.
South Korea set a PPA record in 2024 with 1.5 GW signed as cheaper solar gear makes solar PPAs competitive with retail tariffs 3.
Developers can build on‑site or near‑site solar plus battery storage by SK Telecom hubs, while Ulsan offers industrial land for gigawatt‑scale growth 1.
KEPCO retail price hikes push companies to rethink energy sourcing, creating demand for renewable PPAs with predictable pricing that support SK Telecom’s AI data center growth plans 3 1.