SK Telecom (SKT) announced plans to develop artificial intelligence (AI) data center capacity of up to 15 gigawatts (GW) in South Korea as it seeks to position the country as a major AI infrastructure hub in Asia.

The company said the project is aimed at expanding domestic AI computing capacity amid growing demand for AI model training and inference, which increasingly rely on high-performance computing infrastructure.

SKT said the initiative aligns with the South Korean government's "AI G3" strategy, which aims to establish the country as one of the world's three leading AI powers alongside the United States and China.

The company plans to begin with the AI data center currently under construction in Ulsan and expand capacity across the country. More than 2GW of capacity is planned in the southeastern Gyeongsang region, while an additional 1GW is targeted for the southwestern Jeolla region. Combined with other planned facilities, SKT aims to reach 5GW of capacity to be activated in stages beginning in 2029 before expanding to a total of 15GW.

According to SKT, the project is being developed in response to an anticipated global shortage of data center capacity. The company cited forecasts from consulting firm McKinsey & Company showing strong growth in global data center demand that is expected to outpace supply through the end of the decade.

SKT said South Korea offers advantages for AI infrastructure investments, including its leadership in high-bandwidth memory  technology, stable power supply supported by nuclear and liquefied natural gas resources and experience in operating large-scale semiconductor manufacturing facilities.

The company noted that construction of a typical 1GW AI data center could require investments of around KRW70 trillion, with funding expected to come from a combination of corporate investments, strategic partners, long-term customer contracts, and project financing.

The project will draw on the capabilities of various SK Group affiliates involved in semiconductors, energy solutions, and data center construction and operations. SKT will oversee the overall design, construction, and operation of the facilities.