South Korea’s second-largest conglomerate, SK Group, in collaboration with Amazon Web Services (AWS), has unveiled an ambitious plan to establish the country’s largest AI-dedicated data center in the vibrant city of Ulsan. This cutting-edge facility, located within the Mipo National Industrial Complex, is set to house a staggering 60,000 graphics processing units (GPUs).

Two Phases of Expansion

The project will roll out in two distinct phases. The first phase is designed to offer a capacity of 41 megawatts by November 2027. As the project evolves, it will ramp up to an impressive 103 megawatts by February 2029. Ultimately, SK aims to expand the site into a 1-gigawatt (GW) AI hub that could redefine the landscape of artificial intelligence in the region.

Collaboration and Investment

Taking the lead on this initiative are SK Telecom and SK Broadband, with additional support from various SK affiliates, including SK hynix and SK Gas. AWS is set to make a monumental investment of $4 billion into the development, symbolizing its commitment to advancing AI capabilities in Asia.

Strategic Location

Strategically situated near SK Gas’s liquefied natural gas (LNG) combined heat and power plant, the new facility promises a reliable energy supply. This proximity not only ensures sustainability but also allows for the innovative use of LNG cold energy to keep the servers cool—a feature that could very well be the cherry on top of this tech cake!

Infrastructure Growth

Covering a sprawling 36,000 square meters, the site was acquired in April for a noteworthy 28.3 billion won ($20.8 million) from SK Chemical. This significant investment underscores the growing demand for AI infrastructure, a venture that places SK and AWS at the forefront of global competition for AI processing power. As AWS continues to expand its footprint, with an existing data center in Seoul and a new facility under construction in Incheon’s Seo District, the race for AI supremacy is heating up.

Questions & Answers

What new facility is SK Group and AWS building in South Korea?

They are constructing the largest AI-dedicated data center in the country, located in Ulsan.

What is the expected capacity of the data center?

The facility will initially provide 41 megawatts of power, with plans to expand to 103 megawatts by February 2029, and ultimately aim for a 1-gigawatt hub.

What unique features will the data center have?

The data center will utilize LNG cold energy for cooling, thanks to its strategic location near an LNG power plant, ensuring a reliable and sustainable energy supply.