The Pulse
SK Hyper Seeks $350 Billion for First 5GW Phase of AI Data Center Plan
SK Hyper is seeking about $350 billion for the first 5GW phase of a South Korean data center plan that targets 15GW by 2035. The company is discussing financing with global technology companies and investors while seeking customers in South
AI.info Team · Written with AI · fact-checked ·
“Through systematic and rapid execution, we will secure core infrastructure and customers, and contribute to Korea’s advancement to AI G3.”
Chung Suk-geun, CEO of SK Hyper, in an SK Telecom announcement
SK Hyper is seeking about $350 billion for the first phase of its South Korean AI data center plan, a 5-gigawatt buildout that includes servers and other equipment. The company is discussing financing with global technology companies and financial investors, Seoul Economic Daily reported on October 23, describing Chung Suk-geun’s comments on Bloomberg TV. The figure applies to the initial 5GW phase—not the entire plan to reach 15GW of capacity.
The funding push puts SK Hyper’s immediate challenge in sharper focus: it needs substantial capital and customers beyond South Korea to support facilities at the planned scale. The company aims to attract AI computing demand from across Asia, including Japan and Taiwan, while building capacity in South Korea.
A $350 billion first phase, not the full 15GW plan
SK Hyper plans to seek its first outside investment late in 2026 or early in 2027, then raise additional funds over the following three to four years. The company intends to share project costs with data center customers and outside investors rather than finance the buildout through SK alone, Seoul Economic Daily reported.
The long-range target is 15GW by 2035. SK Telecom, which established SK Hyper as a dedicated data center development company, has said the first 5GW is expected to open in stages from 2029 and that later expansion will depend on market demand. Its July announcement set an investment limit of 750 billion won through 2030 for groundwork such as site acquisition and substation construction; that amount is separate from the reported $350 billion estimate for the initial phase.
Global customers are the other half of the financing plan
SK Hyper is talking with hyperscalers about locating AI inference hubs in South Korea and also wants to attract infrastructure for training AI models. In comments reported by Seoul Economic Daily, Chung identified securing demand in overseas markets and raising construction capital as major challenges. The newspaper also reported that he put South Korea’s current data center market at about 1GW, making the planned initial phase roughly five times that size.
That comparison helps explain why the company is looking beyond domestic customers. SK Telecom’s published plan names Ulsan as a starting point for a gigawatt-scale cluster, with additional facilities planned in the Chungcheong and southwestern regions. Seoul Economic Daily reported a more specific ambition for a cluster exceeding 2GW in the Yeongnam region, starting with the Ulsan site.
SK Hyper says it will match spending to demand
The company’s timetable is staged: it plans to line up an initial outside investment, raise more capital over several years, and share costs with tenants and investors. Seoul Economic Daily reported that Chung said revenue could begin as early as 2027, before the first facilities are scheduled for completion in 2029.
SK Telecom’s project guidance says investment will proceed in phases, shaped by confirmed demand as well as power, land and permitting conditions. That makes customer commitments more than a sales target: they are a condition for how quickly the company can expand. SK Hyper’s reported $350 billion estimate sets the scale of the first buildout; the company’s ability to secure users and financing will determine how much of its 15GW plan advances beyond it.