South Korea has formally announced a landmark investment of approximately 7 trillion won (US$5.11 billion or RM21.74 billion) for the construction of the country’s largest artificial intelligence (AI) data centre. The project is a collaboration between SK Group and Amazon Web Services (AWS), with AWS contributing US$4 billion towards the initiative, according to a statement released by the Ministry of Science on Friday.
The data centre, set to be established in the southern industrial city of Ulsan, is scheduled to break ground in September. It is expected to be fully operational by 2029, with an initial capacity of 100 megawatts. The facility will serve as a strategic hub for AI development and infrastructure, underlining South Korea’s ambition to become a global leader in high-tech innovation.
During a meeting attended by President Lee Jae-myung and several senior technology executives, SK Group Chairman Chey Tae-won revealed plans to eventually scale the facility’s capacity to one gigawatt. He emphasised the strategic importance of the data centre, aiming to position it as a global AI node capable of supporting domestic and international demand.
“AI is crucial for South Korea’s growth,” Chey stated, reinforcing the group’s commitment to national digital competitiveness.
President Lee added that the project sets a precedent for developing advanced technology infrastructure outside the capital region. “It may set a good example that South Korea’s high-tech industry is possible not only in the metropolitan area but also in the provinces,” he said.
News of the investment fuelled a surge in AI-related equities on Friday, driven by increased policy optimism. SK Hynix rose by over 3%, Kakao recorded an 11% jump, and LG CNS gained 9%, helping to lift the benchmark Kospi Index above 3,000 points for the first time in three and a half years.
The government’s confirmation follows earlier media speculation regarding the SK-AWS partnership to establish a data centre in the country.
-Reuters
