SK Group's SK Hyper in Talks to Fund $350B First Phase of AI Data Center Plan

SK Hyper Co., the data center unit established in July under SK Telecom Co., has opened discussions with major technology companies and financial investors to help finance a planned 15-gigawatt AI data center buildout in South Korea by 2035. CEO Chung Suk-geun told Bloomberg Television that the initial 5-gigawatt phase alone would require $350B, including equipment, with the company aiming to close its first external funding round by late 2026 or early 2027. Parent firm SK Telecom plans to invest 750B won ($567M) into SK Hyper by 2030, while the unit expects to split the broader capital burden with outside investors and future data center tenants. SK Hyper is currently developing a 900-megawatt facility in Ulsan alongside a previously announced 100-megawatt project for Amazon $AMZN Web Services, with initial data centers scheduled for completion in 2029. "We are going to manage our risk appropriately, meeting with market demand." — Chung Suk-geun, CEO of SK Hyper.