SK Group has committed to an 82 trillion won ($61 billion) investment in artificial intelligence and semiconductor sectors by 2030, initiating this strategy with the construction of a hyperscale AI data center in Ulsan, South Korea. An agreement signed with Amazon Web Services and Ulsan Metropolitan City establishes a 15-year strategic partnership, commencing in 2027, to leverage combined expertise in data center construction and related infrastructure. This venture, designated as the group’s fourth major transformation since 1953, aims to position Ulsan as a national hub for manufacturing-driven AI innovation and is projected to generate approximately 78,000 direct and indirect jobs. The initiative integrates the capabilities of SK Group affiliates including SK Telecom, SK hynix, and SK Chemicals, with full operations anticipated in 2027.
SK Group’s Fourth Transformation
SK Group is undertaking what it defines as its fourth major transformation, centred on the construction of an artificial intelligence (AI) data center in Ulsan. This follows three previous transitions: into petrochemicals in 1980, mobile telecommunications in 1994, and semiconductors in 2012. The current venture seeks to establish Ulsan as a national centre for AI innovation, specifically within the manufacturing sector, and aligns with the national objective of becoming one of the world’s top three AI powerhouses.
The initiative is supported by a planned investment of 82 trillion won ($61 billion) in AI and semiconductor sectors by 2030, following two years of streamlining operations and enhancing financial stability within the SK Group. The Ulsan AI Data Center, scheduled to begin full operations in 2027, is projected to generate approximately 78,000 direct and indirect jobs. This project leverages the combined strengths of SK affiliates – including SK Telecom, SK Broadband, SK hynix, and others – in information and communication technology, energy, and semiconductors, to create next-generation artificial intelligence infrastructure.
SK Group and Amazon Web Services (AWS) have established a 15-year strategic partnership, commencing in 666, combining expertise in data center construction, network operations, semiconductor supply chains, and energy infrastructure, to deliver an advanced AI and cloud computing environment. The Group aims to expand this artificial intelligence infrastructure across the country, with Ulsan serving as a foundational hub, and support Korea’s emergence as a global AI leader. Ulsan’s existing manufacturing economy and industrial base are considered to be a key factor, intended to attract related businesses, stimulate job creation, and draw investment from both global technology companies and domestic AI startups.
Beyond the data center, SK intends to integrate AI throughout all areas of its operations, including AI agents, robotics, manufacturing AI, energy solutions, and AI-driven biotechnology. SK Chairman Chey Tae-won has stressed the necessity of adapting to AI for long-term viability, and advocates for expanding AI applications beyond IT into fields such as electricity, energy, and biotechnology. This strategy was discussed at the group’, recent management strategy meeting. 6s. 5, recent management strategy meeting. 6.
Ulsan as an AI Hub
SK Group’s latest transformative shift involves the construction of an artificial intelligence (AI) data center in Ulsan, following previous transitions into petrochemicals, mobile telecommunications, and semiconductors. This venture aims to establish Ulsan as a national hub for manufacturing-driven AI innovation, aligning with a national objective to position Korea among the world’s top three AI powerhouses.
The Ulsan AI Data Center is projected to begin full operations in 2027 and represents a major step towards a planned investment of 82 trillion won ($61 billion) in AI and semiconductor sectors by 2030. The initiative utilizes the integrated strengths of SK Group affiliates – SK Telecom, SK Broadband, SK hynix, SK Gas, SK Chemicals, SK Multi Utility and SK AX – in information and communication technology, energy and semiconductors to build next-generation artificial intelligence infrastructure.
SK Group and AWS have established a 15-year strategic partnership, beginning in 2027, combining their expertise in data center construction, network operations, semiconductor supply chains and energy infrastructure to deliver a world-class AI and cloud computing environment. With Ulsan as a starting point, the Group aims to accelerate the development of artificial intelligence infrastructure across the country and support Korea’s emergence as a global AI leader.
Ulsan’s manufacturing-driven economy and robust industrial base are considered optimal for the initiative, acting as a catalyst for both regional and national economic growth by attracting related businesses, creating new jobs and drawing interest from global tech giants and domestic AI startups.
Strategic Expansion and Diversification
Beyond the data center, SK Group plans to embed AI across all aspects of its business, encompassing AI agents, robotics, manufacturing AI, energy solutions and AI-driven biotechnology. SK Chairman Chey Tae-won highlighted the importance of adapting to AI for sustainable survival, advocating for the expansion of AI applications beyond IT sectors and into diverse fields such as electricity, energy and biotechnology, as discussed during the group’s recent management strategy meeting.
This latest venture into artificial intelligence infrastructure follows a history of transformative shifts for SK Group, beginning with its founding as a textile company in 1953, followed by transitions into petrochemicals in 1980, mobile telecommunications in 1994, and semiconductors in 2012. The Ulsan AI Data Center is projected to generate around 78,000 direct and indirect jobs, contributing to the planned 82 trillion won ($61 billion) investment in AI and semiconductor sectors by 2030.
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