• SK and AWS to co-develop 103 MW AI data center with 60,000 GPUs.
• First phase to be completed by Nov 2027; full launch by Feb 2029.
• Ulsan site chosen for proximity to reliable power and cooling sources.

SK Group is collaborating with Amazon Web Services to establish South Korea's largest AI data center in Ulsan, with both firms contributing several trillion won, as per industry sources on Monday.

The two firms are poised to launch the project this month, with a ceremonial groundbreaking planned for August. The large facility will be constructed on a 36,000-square-meter area within the Mipo Industrial Complex in Ulsan, according to sources.

Once completed, the center, utilizing 60,000 graphics processing units, will possess a power capacity of 103 megawatts, establishing it as the nation's largest AI infrastructure, sources reported. The development of the project will occur in two stages: The initial stage intends to deliver 40 megawatts by November 2027, while the complete capacity of 103 megawatts will be operational by February 2029.

SK Telecom, the telecom subsidiary of SK Group, will oversee the project. SK Telecom CEO Ryu Young-sang announced in March at the Mobile World Congress in Spain, intentions to build a hyperscale AI data center utilizing 60,000 GPUs.

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Although the precise amount of investment has not been disclosed, SK Telecom stated earlier this year its intention to allocate 3.4 trillion won in AI infrastructure by 2028, with a significant share anticipated for this initiative. In April, SK Telecom, along with its subsidiary SK Broadband, acquired the land from SK Chemical for 28.3 billion won ($20.8 million).

SK seems to have picked Ulsan as the location due to its closeness to SK Gas’ liquefied natural gas combined heat and power facility, which guarantees a consistent supply of substantial electricity crucial for data center functions. The facility can likewise use LNG cold energy for cooling data centers.

AWS, the leading cloud provider globally, has been broadening its presence in Korea. It is currently operating a data center in Seoul and started building its second facility in Incheon’s Seo District in late 2023. The firm has committed to investing 7.85 trillion won in South Korea’s cloud computing infrastructure by 2027.