SK Hyper seeks partners to fund $350 billion AI data centre expansion in South Korea

SK Hyper, the data-centre arm of South Korea's SK Group, announced it is in talks with major technology companies and financial investors to fund a $350 billion AI-focused data-centre build-out. The plan targets 15 GW of capacity by 2035, beginning with a 5 GW phase that alone requires the stated amount. The firm expects to close its first round of external capital by the end of 2026 or early 2027, followed by additional fundraising over the next three to four years, with costs to be split between tenants and outside investors.

CEO Chung Suk-geun emphasized a demand-driven investment pace to mitigate the risk of an AI-related market bubble. SK Hyper, established as a unit of SK Telecom, seeks to attract global tech firms to use South Korea as a hub for AI training serving markets like Japan, Taiwan, and potentially the Middle East. SK Telecom will invest 750 billion won through 2030, and the company is already developing a 900 MW project in Ulsan and a 100 MW site for Amazon Web Services, while negotiating further locations with the government.