SK Group and AWS Invest $5.1B in AI Data Center in Ulsan

According to reports, SK Group has officially announced plans to invest approximately 7 trillion Korean won (USD $5.11 billion) in constructing a large-scale AI data center in Ulsan, a major city in southern South Korea. Of this total investment, USD $4 billion will come from Amazon Web Services (AWS), marking one of the most significant collaborations between a Korean tech conglomerate and a global cloud computing leader.

According to the Ministry of Science and ICT, the facility is set to become South Korea's largest data center. Groundbreaking is scheduled for September 2025, with full-scale operations expected by 2029. The initial power capacity of the center will be 100 megawatts, with future plans to scale up to 1 gigawatt, making it one of the largest AI-focused data centers in Asia.

Speaking at a high-level meeting attended by President Lee Jae-myung and top technology executives, SK Group Chairman Chey Tae-won emphasized the strategic importance of AI to South Korea's economic future. He stated his ambition to transform the facility into a global hub for AI development and data processing to meet the growing domestic and international demand.

President Lee highlighted the symbolic value of the project, noting that it showcases how South Korea's advanced technology infrastructure can flourish not only in metropolitan regions but also in provincial areas like Ulsan.

The announcement sparked strong investor optimism, sending AI-related stocks soaring on Friday. Shares of SK Hynix rose over 3%, Kakao jumped 11%, and LG CNS gained 9%. These gains pushed the KOSPI index above the 3,000-point threshold for the first time in three and a half years.

Earlier this month, reports surfaced about a potential collaboration between SK Group and AWS on a data center project. The latest official statement now confirms the details and scale of the initiative, positioning it as a cornerstone in South Korea's long-term AI infrastructure strategy and global competitiveness in emerging technologies.