Is South Korea's Largest AI Data Centre on the Horizon?
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Synopsis
SK Group is set to revolutionize South Korea's tech landscape with plans to build the nation's largest AI data center in partnership with AWS. This facility will house 60,000 GPUs and is expected to power the future of AI applications. The project signifies a major leap in AI infrastructure, positioning South Korea at the forefront of technological advancement.
Key Takeaways
- SK Group is collaborating with AWS to build a cutting-edge AI data centre in South Korea.
- The facility will feature 60,000 GPUs and a power capacity of 100 megawatts.
- Investment in AI infrastructure is projected at 3.4 trillion won by 2028.
- LG Energy Solution is also expanding its business by supplying EV batteries to Chery Automobile.
- This initiative positions South Korea as a key player in the global AI and tech landscape.
Seoul, June 16 (NationPress) SK Group, a prominent conglomerate in South Korea spanning sectors from chips to construction, announced on Monday its intention to establish the nation's largest artificial intelligence (AI) data centre in collaboration with Amazon Web Services (AWS).
Industry insiders indicate that the two entities are poised to unveil the project this month, with a groundbreaking ceremony scheduled for August.
"While they have been engaged in the project, the precise timeline and other particulars are still under wraps," remarked a spokesperson from SK Group, as reported by the Yonhap news agency.
This cutting-edge facility will be situated in the Mipo industrial complex in Ulsan, located 305 kilometers southeast of Seoul. It is designed to accommodate 60,000 graphics processing units (GPUs) and will possess a power capacity of 100 megawatts, marking it as the first AI infrastructure of this magnitude in the country, according to sources.
Ryu Young-sang, the CEO of SK Telecom Co., disclosed the company's ambitious plan to construct a hyperscale AI data centre outfitted with 60,000 GPUs in partnership with a global tech leader during the Mobile World Congress (MWC) 2025 held in Spain back in March.
SK Telecom aims to invest 3.4 trillion won (approximately US$2.49 billion) in AI infrastructure by 2028, with a substantial portion earmarked for this data centre initiative.
AWS, a division of Amazon, offers on-demand cloud computing solutions and application programming interfaces (APIs) to individuals, businesses, and governments on a pay-per-use basis.
In another development, LG Energy Solution, the leading battery manufacturer in South Korea, announced on Monday that it has reached an agreement with Chery Automobile Co. in China to provide cylindrical electric vehicle (EV) batteries.
As part of this agreement, LG Energy Solution will deliver a total of 8 gigawatt-hours of its next-generation 46-series cylindrical batteries to Chery Automobile over the next six years, sufficient to power around 120,000 EVs, as stated by the company.
While the value of the contract remains undisclosed, industry analysts estimate it to be approximately 1 trillion won (around US$730 million).
The battery supply is expected to commence early next year, with installations planned for Chery's flagship EV models.
The 46-series cylindrical batteries boast over five times the energy capacity and output of traditional cylindrical cells and are recognized for their high production efficiency.
LG Energy Solution affirmed that this contract highlights the superiority of its proprietary nickel-cobalt-manganese (NCM)-based 46-series battery, which excels in cold temperatures and charging efficiency while delivering exceptional energy density compared to lithium iron phosphate (LFP) batteries.
The two companies have intentions to broaden their collaboration to encompass additional EV models across the Chery Group.
Point of View
It's crucial to recognize the transformative potential of SK Group's initiative in collaboration with AWS. This project is not merely a technological upgrade; it's about positioning South Korea as a leader in the global AI arena, setting the stage for future innovations. The implications for both local and international markets are profound and warrant our attention.
NationPress
16/06/2025
Frequently Asked Questions
What is the significance of the new AI data center?
The new AI data center will be South Korea's largest, featuring 60,000 GPUs. This positions the country as a leader in AI infrastructure and enhances capabilities for various industries.
When will the construction of the data center begin?
The groundbreaking ceremony for the data center is scheduled for August, following the project's announcement later this month.
What role does AWS play in this project?
AWS is partnering with SK Group to provide cloud computing solutions and infrastructure essential for operating the AI data center.
How much is SK Telecom investing in AI infrastructure?
SK Telecom plans to invest 3.4 trillion won (approximately US$2.49 billion) in AI infrastructure by 2028, with a significant portion directed towards this data center.
What other partnerships is LG Energy Solution pursuing?
LG Energy Solution has secured a deal with Chery Automobile Co. to supply cylindrical EV batteries, expanding its market reach in the electric vehicle sector.
