A landmark moment is taking shape in Korea's AI infrastructure development as SK Telecom, the country's largest telecommunications company, partners with Amazon Web Services (AWS) to launch a massive AI data center project in Ulsan. With a total investment of approximately $7 billion, this Asia-Pacific region's largest AI-dedicated facility promises to fundamentally reshape Korea's data center landscape, which has been heavily concentrated in the Seoul metropolitan area.
For American readers, this development is comparable to Amazon's recent investments in Virginia and Ohio data centers, but with a uniquely Korean twist. The project represents Korea's strategic push to become an AI powerhouse in Asia, similar to how the US positioned itself as a global cloud computing leader through hyperscale data center investments over the past decade.
The groundbreaking ceremony held on August 29 at the Ulsan Exhibition & Convention Center (UECO) brought together over 200 attendees, including SK Supex Council Chairman Choi Chang-won, SK Telecom CEO Yoo Young-sang, SK Ecoplant CEO Kim Hyung-geun, and Ulsan Mayor Kim Doo-kyum. These leaders emphasized that the Ulsan AI data center will become the backbone of Korea's AI industry ecosystem, much like how major tech hubs in the US serve as infrastructure foundations for innovation.
SK Telecom and AWS's Ulsan AI Data Center represents Asia's largest AI infrastructure investment
Asia's Largest AI-Dedicated Data Center Takes Shape
The data center, to be constructed on a 36,000 square meter (approximately 8.9 acre) site in Ulsan's Mipo National Industrial Complex, will be Korea's first 100MW-class GPU-dedicated facility. AWS is investing approximately $5.4 billion (roughly $4 billion) of the total project cost, demonstrating the global cloud giant's confidence in Korea's AI market potential.
To put this in perspective for American readers, this capacity rivals some of the largest data centers in the US. The facility will house approximately 60,000 high-performance GPUs – a scale that significantly exceeds Korea's current total GPU capacity nationwide. This massive computational power is designed to dramatically enhance Korea's AI processing capabilities, positioning the country to compete more effectively with US and Chinese AI development efforts.
The project timeline spans several phases: the first phase will deliver 41MW capacity by November 2027, with full 103MW capacity operational by February 2029. Long-term expansion plans envision scaling to 1 gigawatt (GW), potentially attracting over $100 billion in additional investment – a figure that would rival major US tech infrastructure projects.
The choice of Ulsan as the location reflects strategic energy considerations that American data center operators would recognize. The site benefits from SK Chemical's combined heat and power plant for large-scale electricity supply, while SK Gas's liquefied natural gas facilities provide cooling efficiency through cold energy utilization. Additionally, the coastal location offers natural cooling advantages, and Ulsan's designation as a distributed energy specialized zone ensures stable energy supply chains – factors increasingly critical for energy-intensive AI operations globally.
Addressing Korea's Regional Infrastructure Imbalance
Currently, 82.1% of Korea's data centers are concentrated in the greater Seoul area, creating a situation comparable to the early days of US cloud infrastructure concentration in Northern Virginia and Silicon Valley. The Ulsan project represents Korea's effort to achieve better geographic distribution, similar to how US hyperscale operators have expanded to secondary markets for cost efficiency and disaster resilience.
For American readers familiar with economic development through tech infrastructure, the project's economic impact projections are substantial. The data center operation is expected to create up to 78,000 direct and indirect jobs – a figure comparable to the employment impact of major US tech campuses. Ulsan City is accelerating its transformation into an AI-specialized city, actively attracting related startups and research institutions, much like how cities such as Austin and Raleigh evolved into tech hubs through strategic infrastructure investments.
The Korean government views this project as a cornerstone of its "AI Highway" initiative. Government officials draw parallels between this digital infrastructure and Korea's historic Gyeongbu Expressway, which was instrumental in the country's rapid industrialization in the 1960s and 1970s. Just as that transportation infrastructure connected Korea's major cities and facilitated economic growth, the Ulsan AI data center is positioned to serve as digital infrastructure connecting Korea to global AI networks.
Government support includes tax incentives and regulatory flexibility to encourage private investment – an approach similar to the economic development zones and tax incentives that many US states offer to attract major tech investments. This public-private partnership model reflects Korea's broader strategy to compete with US and Chinese AI capabilities through coordinated government and industry efforts.
"The Ulsan AI data center goes beyond simple facility construction to become a strategic hub for Korea's emergence as a global AI powerhouse," emphasized an SK Telecom representative. "Through our partnership with AWS, we will build world-class AI infrastructure comparable to the best facilities in the United States."
This project marks a significant milestone in Korean IT industry history and represents the kind of international collaboration that could reshape Asia-Pacific's AI infrastructure landscape. The success of this Korean-American partnership in creating Asia's largest AI data center will likely influence how Korea positions itself as a critical AI hub in the global technology ecosystem, challenging both Silicon Valley's dominance and China's growing AI infrastructure investments.
For the global AI industry, this development signals Korea's serious commitment to competing at the highest levels of AI infrastructure, potentially establishing the country as a key alternative to US and Chinese AI capabilities for international businesses seeking diversified cloud computing options in the Asia-Pacific region.
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