SK Group's Data Center Unit Seeks $350 Billion for AI Expansion

SK Hyper, the data center division of South Korea's SK Group, is actively seeking substantial funding to support a groundbreaking $350 billion artificial intelligence infrastructure buildout. The company is currently in discussions with major technology firms and financial investors to secure the necessary capital.

Established in July as part of SK Telecom, SK Hyper aims to leverage South Korea as a strategic base for AI operations across Asia. The ambitious plan includes developing 15 gigawatts of data center capacity by 2035, with the initial phase alone requiring $350 billion for equipment and infrastructure, according to CEO Chung Suk-geun.

Chung highlighted that SK Telecom plans to invest 750 billion won into this venture by 2030. The company is targeting to finalize its first external funding round by the end of 2026 or early 2027, with further fundraising efforts anticipated over the next few years.

Despite the scale of investment, there are concerns among investors regarding the future demand for AI services and whether it will justify such extensive spending on computing infrastructure. Chung stated that SK Hyper intends to adjust its investments based on actual demand rather than committing to the entire program upfront.