Ulsan, South Korea – June 2025 — In a landmark development that underscores South Korea’s growing role in the global artificial intelligence ecosystem, billionaire Chey Tae-won’s SK Group has partnered with Amazon Web Services (AWS) to construct a massive AI data center in Ulsan. Valued at 7 trillion won (approximately $5.1 billion), the project aims to create a state-of-the-art infrastructure hub that will play a crucial role in accelerating AI innovation across Asia.
According to an official statement from South Korea’s Ministry of Science and ICT, the cutting-edge AI facility will begin construction in September 2025 and is expected to be fully operational by early 2029. Once completed, the Ulsan AI data center will boast a power capacity exceeding 100 megawatts, making it one of the most powerful and advanced data centers in the region. AWS is investing a substantial $4 billion into the initiative, reinforcing its commitment to expanding its AI and cloud infrastructure footprint in Asia.
The collaboration marks a significant 15-year strategic alliance between SK Group—a diversified conglomerate with operations in semiconductors, telecommunications, and energy—and AWS, the cloud computing division of U.S.-based tech giant Amazon. This partnership is designed not only to enhance Korea’s technological capabilities but also to establish a robust AI infrastructure ecosystem, powered by fast networks, advanced computing resources, and sustainable energy systems.
In a LinkedIn post shared on Sunday, SK Group Chairman Chey Tae-won emphasized the transformative potential of the new facility. “The Ulsan AI Data Center will serve as a cornerstone in meeting the rising demand for next-gen AI infrastructure. Our group is uniquely positioned to deliver on this promise through the synergy of our key affiliates,” he wrote.
Chey elaborated that the collaborative effort will harness the strengths of several SK subsidiaries:
SK Hynix will provide high-bandwidth memory (HBM) chips crucial for AI model performance.
SK Telecom and SK Broadband will offer extensive network and data management expertise.
SK Gas and SK Multi Utility will ensure stable and energy-efficient operations, helping to power the data center at scale.
This strategic alignment comes amid SK Group’s broader ambition to become a global AI powerhouse. In 2023, the company pledged an investment of 82 trillion won by 2026 to expand its portfolio in HBM chip manufacturing, personalized AI assistant services, and data center infrastructure.
SK Group has also taken bold steps into the AI startup ecosystem. The conglomerate has invested in U.S.-based ventures like Perplexity, a next-generation search engine, and Twelve Labs, a pioneer in video intelligence. Domestically, SK is backing Korean large language model (LLM) developer Upstage, while its AI semiconductor subsidiary, Sapeon, recently merged with rival Rebellions, creating a formidable player in the AI chip market valued at 1.3 trillion won.
The Ulsan project arrives at a time when other Korean tech giants are ramping up their AI ambitions. Earlier this month, billionaire Kim Beom-su’s Kakao Corporation announced a 600 billion won investment into its own AI data center. This follows Kakao’s high-profile partnership with OpenAI to develop AI-powered tools customized for Korean users, leveraging ChatGPT technology to enhance its new personalized assistant platform.
South Korea’s push into AI infrastructure development mirrors the country’s broader national vision to position itself as a global technology leader. With heavyweight investments from both domestic conglomerates and international partners like Amazon, the peninsula is fast becoming a fertile ground for AI-driven innovation.
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