SK Hyper seeks funding for 15GW South Korea data centers, says Bloomberg
SK Telecom unit SK Hyper is launching discussions with technology corporations and financial investors to secure capital for a massive 15-gigawatt data center expansion in South Korea by 2035, with the initial 5-gigawatt phase estimated to cost $350 billion including equipment, Bloomberg reported.
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The Tech TL;DR:
- SK Telecom established a dedicated subsidiary named SK Hyper to direct a mid-to-long-term 15GW AI data center buildout across South Korea.
- The first 5GW capacity phase requires an estimated $350 billion covering both infrastructure and hardware equipment, according to Bloomberg.
- SK Telecom’s board approved an initial KRW 750 billion investment through 2030 to acquire sites, build substations, and secure foundational assets.
Funding Targets and Infrastructure Phasing Through 2035
According to SK Telecom’s corporate news portal, the business plan schedules the opening of the first 5-gigawatt phase for 2029. Sequential expansion toward the full 15-gigawatt capacity will then scale up through 2035, depending on ongoing market demand. To coordinate these deployments, SK Telecom created an AIDC Integrated Development Division reporting directly to the chief executive.
The buildout starts regionally with a gigawatt-class cluster in Ulsan, followed by additional gigawatt-class sites in the Chungcheong and Honam regions. SK Hyper’s newly appointed chief executive, Chung Suk-geun, stated that the organization will manage site procurement, substation engineering and construction, customer acquisition, and overall commercial operations to support national AI infrastructure goals.
SK Telecom Funds Initial Server Rack Requirements
SK Telecom will maintain complete 100 percent ownership of the subsidiary while distributing phased capital contributions through 2030. The board’s initial KRW 750 billion allocation will fund critical baseline requirements, including land acquisition and electrical substation construction necessary for high-density server racks. Bloomberg reported that these financial outlays form just the beginning of the broader $350 billion funding requirement for the initial 5-gigawatt tier.
# Architectural capacity projection model for SK Hyper AIDC rollout
capacity_phases = {
"Phase_1_2029": {"target_gw": 5, "estimated_cost_usd": 350000000000},
"Phase_2_2035": {"target_gw": 10, "expansion_mode": "sequential"}
}
print(f"Total target capacity: {sum(v['target_gw'] for v in capacity_phases.values())} GW")
Chief Executive Chung Suk-geun noted that the overarching mission is to actualize the group’s framework for establishing an artificial intelligence infrastructure hub across Asia.
Disclaimer: The technical analyses and security protocols detailed in this article are for informational purposes only. Always consult with certified IT and cybersecurity professionals before altering enterprise networks or handling sensitive data.