SK Group urges profitable AI model as $5.2 bn data centre rises
SK Group chairman Chey Tae-won warned that AI spending must become profitable and self-sustaining, or risk creating a bubble.
Speaking at the Ulsan Forum 2026, SK Group chairman Chey Tae-won called for a sustainable AI business framework, arguing that the huge influx of capital into artificial intelligence must eventually produce profits to fund further growth. He identified speed, scale and safety as core elements of the conglomerate’s AI approach and warned that a lack of returns could trigger an investment bubble. Chey emphasized the need for economies of scale, especially for industrial AI that requires vast data, and said a nationwide effort is essential.
He disclosed that SK’s AI data centre in Ulsan, built jointly with Amazon Web Services, has expanded to almost 900 megawatts and carries an estimated cost of 7 trillion won, with operations expected in the second half of 2027. The group also plans to announce additional partnerships with global tech firms as the project advances.
Why it matters
AI investment is soaring; without profitable models the sector could face a costly bubble.
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