SK Hyper, a data center unit of SK Telecom formed in July 2026, is seeking external funding for a $350 billion plan to build 15 gigawatts of data center capacity in South Korea by 2035. The initial 5-gigawatt phase targets tech firms and financial investors to establish South Korea as a regional AI hub serving Japan and Taiwan. Amid market concerns over an AI infrastructure bubble, CEO Chung Suk-geun stated investment pacing will match demand, backed by 750 billion won from SK Telecom.
Buildout capacity and fundraising schedule
- ▪CEO Chung Suk-geun said SK Hyper plans to conduct further fundraising over three to four years following its initial round of external capital
- ▪SK Hyper CEO Chung Suk-geun announced a plan to build 15 gigawatts of data center capacity in South Korea by 2035, with the initial 5-gigawatt phase requiring $350 billion including equipment
Financing and capital strategy
- ▪SK Hyper is holding discussions with technology companies and financial partners to raise its first round of external capital by late 2026 or early 2027
- ▪SK Telecom plans to directly invest 750 billion won ($567 million) into its SK Hyper subsidiary by 2030
- ▪SK Hyper plans to distribute its $350 billion data center buildout expenditures across facility tenants and external financial investors
Managing market risks and investment pace
- ▪SK Hyper is launching its $350 billion data center plan in South Korea during heightened financial market volatility driven by fears of an AI infrastructure bubble
- ▪SK Hyper CEO Chung Suk-geun stated that the company will adjust its investment rate based on actual market demand to manage financial risk
Regional hub strategy and government outreach
- ▪SK Hyper is negotiating with the South Korean government for additional land sites and seeking to offer integrated computing and AI model packages to Asian and Middle Eastern governments
- ▪Established in July 2026 as a unit of SK Telecom, SK Hyper aims to establish South Korea as an AI processing hub serving Asian markets such as Japan and Taiwan
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