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SK Telecom Unveils Plans to Transform South Korea into AI Data Center Hub for Asia-Pacific

Dae-Hyun by Dae-Hyun
PUBLISHED: November 4, 2024 UPDATED: November 5, 2024
in AI, SK
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SK Telecom Unveils Plans to Transform South Korea into AI Data Center Hub for Asia-Pacific
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SK Telecom, the telecommunications division of SK Group, has announced plans to establish South Korea as an artificial intelligence (AI) data center hub for the Asia-Pacific region. 

CEO Ryu Young-sang shared this “AI Infrastructure Superhighway” vision during the SK AI Summit in Seoul. The initiative aims to create a strong AI infrastructure incorporating AI data centers, graphic processing units as a service (GPUaaS), and edge AI technology.

According to Yonhap, Ryu emphasized that the strategy is focused on developing comprehensive AI capabilities to enhance the region’s technological ecosystem.

Speaking at the SK AI Summit, Yoo described the company’s “AI infrastructure superhighway” as a vital step in helping South Korea among the top three global AI leaders. He emphasized the need for advanced infrastructure, including extensive data centers and collaborative partnerships, to support this goal.

One major challenge for the project is limited power availability in South Korea’s metropolitan area, which has made large-scale data center construction difficult. To address this, Yoo announced that SK Telecom would secure land with ample power and integrate renewable energy resources in other regions. 

With a 100-megawatt data center, SK Telecom aims to expand to gigawatt-level capacity, enabling the infrastructure to support high-demand AI applications.

The economic impact of this expansion is projected to be substantial. According to SK Telecom, a gigawatt-level data center could draw around 50 trillion won ($36.5 billion) in new investments, generate more than 550,000 jobs, and create an economic effect valued at over 175 trillion won. 

The initial testbed for this AI data center will launch in Pangyo, near Seoul, next month and will feature Nvidia’s latest chips and AI technology for high-performance data processing.

Additionally, SK Telecom is set to upgrade its existing data center in western Seoul into an AI-focused facility. In collaboration with global cloud provider Lambda, the company will offer GPU as a Service (GPUaaS) starting in December. 

In addition to its infrastructure plans, SK Telecom is set to invest around 100 billion won ($72.9 million) starting next year to develop a sovereign AI system designed specifically for the South Korean market. This initiative aims to create an AI that meets the unique needs of local users and industries, reinforcing the company’s commitment to advancing AI capabilities in the region.

Furthermore, SK Telecom is focused on enhancing edge AI technology, which merges telecommunications networks with AI computing to improve operational efficiency. This development is part of the company’s broader strategy to implement its AI infrastructure within sixth-generation (6G) networks, positioning South Korea as a leader in AI innovation across the Asia-Pacific region.

Tags: AIData CenterSK Telecom

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