SK Telecom Establishes SK Hyper to Spearhead Regional AI Data Center Expansion

SK Telecom is making a significant move to dominate the regional artificial intelligence landscape by launching a specialized subsidiary focused on AI data centers. This new entity, named SK Hyper, is part of a broader strategic initiative to position South Korea as a central infrastructure hub for AI across Asia. To support this ambitious vision, SK Telecom has committed to investing 750 billion won into the subsidiary by the year 2030. This corporate restructuring highlights the shift from traditional telecommunications toward becoming a comprehensive AI infrastructure provider.

Jung Suk-geun, who serves as the head of SK Telecom’s AI Cloud Innovation Center (CIC) and leads the group’s AI Data Center Task Force, has been appointed as the CEO of SK Hyper. According to Jung, the current technological race has shifted from software algorithms to the physical infrastructure required to run them. Modern AI data centers differ significantly from their predecessors; while traditional centers relied on central processing units and storage, contemporary facilities require massive clusters of graphics processing units (GPUs). These components demand extraordinary amounts of electricity and specialized cooling systems to function effectively.

SK Hyper aims to leverage the integrated strengths of the SK Group, which possesses a "full-stack" of relevant industrial capabilities. This includes SK Hynix’s expertise in high-bandwidth memory, SK’s construction and energy solutions, and SK Telecom’s history of managing large-scale networks. The company believes that providing a stable supply of power and high-performance memory will be the primary factor in attracting global technology giants. Jung noted that memory capacity is often the biggest bottleneck in AI inference, giving SK a structural advantage due to its semiconductor background.

Beyond domestic growth, SK Telecom views the establishment of these high-capacity centers as a third national infrastructure revolution, following the development of highways and high-speed internet. By securing large-scale sites and ensuring a reliable power supply—areas where South Korea excels—SK Hyper intends to become a preferred partner for global hyper-scalers. The company views the next few years as a critical window to establish dominance in the Asian market before competition from other regions intensifies.

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Read original at SK Telecom Newsroom.