SK Group’s fledgling data center arm, SK Hyper, has opened talks with big technology companies and financial investors to fund an envisioned $350 billion AI data center buildout in South Korea, chief executive Chung Suk-geun told Bloomberg Television on Oct. 23.

The plan, one of the largest AI infrastructure blueprints disclosed this year, calls for 15 gigawatts of data center capacity in South Korea by 2035. The first 5 gigawatt phase alone would require the full $350 billion, including equipment, Chung said.

What SK Hyper Wants to Build

SK Hyper was established in July as a unit of SK Telecom Co to develop and operate data centers, according to reports of the Bloomberg interview. The company aims to attract global technology companies to South Korea as a base for AI training and operations, serving Asian markets such as Japan and Taiwan rather than relying solely on domestic demand.

The SK Hyper buildout at a glance: 15 GW by 2035, $350B first phase

Graphic: GPTOnline, using SK Telecom assets

The project pipeline already includes a 900 megawatt facility in the southern industrial city of Ulsan, alongside a previously announced 100 megawatt project for Amazon Web Services. Chung said the company is in talks with the South Korean government to secure additional sites, and that SK Hyper is exploring opportunities to serve governments in Asia and the Middle East, offering computing capacity and AI models as an integrated package.

SK Hyper could begin generating revenue as early as next year, Chung added, ahead of the planned completion of its initial data centers in 2029.

The Funding Plan

The company wants to close its first round of external capital by the end of this year or early 2027, followed by additional fundraising over the next three to four years. Rather than carrying the full cost on SK Group’s balance sheet, SK Hyper plans to share the burden with data center tenants and outside investors.

Why the SK Hyper buildout matters

Graphic: GPTOnline, using SK Telecom assets

“We are under discussions with many strategic and financial partners,” Chung said in the interview. “We want to be prepared for meeting the market demand by making data centres in Korea.”

SK Telecom itself plans to invest 750 billion won ($567 million) in SK Hyper by 2030, a modest anchor relative to the plan’s scale. Chung said his company would adjust the pace of investment according to actual demand rather than committing to the entire plan upfront. “We are going to manage our risk appropriately, meeting with market demand,” he added.

Why It Matters

SK is entering the race at a moment when investors are openly questioning whether the AI infrastructure boom can justify its price tag. Markets have gyrated on fears of an AI bubble, with funding for data center projects under scrutiny amid worries that spending on future AI services will not cover the trillions of dollars flowing into the global computing buildout. SK Telecom shares fell about 3% after the Bloomberg report, Finimize reported.

Still, SK brings unusual advantages to the bet. The conglomerate’s affiliates span chips (SK hynix), energy and telecommunications, expertise Chung said should help offset relatively high Korean electricity costs by improving computing efficiency.

The announcement also fits a broader Asian push for sovereign and near-sovereign AI capacity. SK Hyper says it wants Korea to become a regional hub for AI training and operations, and it is packaging computing capacity with AI models for government customers in Asia and the Middle East, a model that mirrors how cloud hyperscalers are now pitching sovereign AI deals worldwide.

Whether the $350 billion vision materializes will depend on tenant commitments. As Chung’s own framing suggests, this is an ambition being negotiated in the open, not capital raised. Investors will be watching whether big tech tenants pre-commit to capacity, which would give lenders the predictable cash flows they need to write checks of this size.

Sources