In a major step toward advancing artificial intelligence infrastructure in Asia, South Korea’s SK Group and Amazon Web Services (AWS) have announced a joint plan to invest $5 billion in building the largest AI data center in South Korea. According to a government statement, construction will begin in September 2025, with the facility expected to reach full operational capacity of 100 megawatts by 2029.
The AI data center is being positioned as a strategic national asset, designed to accelerate South Korea’s capabilities in artificial intelligence, cloud computing, and digital innovation. The collaboration between SK Group—one of South Korea’s largest conglomerates—and AWS, the global leader in cloud services, represents one of the most significant tech infrastructure investments in the country to date.
Strengthening South Korea’s AI Ecosystem
The planned data center will serve as a backbone for AI model training, high-performance computing, and cloud-native application development. With the exponential growth of AI applications across sectors such as finance, healthcare, manufacturing, and smart cities, South Korea is aiming to position itself as a regional AI powerhouse.
The new facility is expected to provide cloud-based AI computing resources not only for SK Group’s subsidiaries but also for Korean startups, academic institutions, and public-sector projects. This will help reduce dependency on overseas cloud and AI infrastructure and foster local AI innovation.
Energy-Efficient and Future-Ready Infrastructure
The upcoming AI data center will be built with sustainability and energy efficiency in mind. AWS and SK Group plan to incorporate advanced cooling technologies and leverage renewable energy sources where possible to reduce the carbon footprint. Achieving a 100 MW capacity by 2029 will make it one of the largest and most energy-intensive AI-focused facilities in the country.
As data centers are critical to both national security and economic competitiveness, the project aligns with South Korea’s broader ambitions under its Digital New Deal and K-Digital Strategy, which aim to develop the country’s next-generation digital infrastructure.
Government Support and National Significance
The South Korean government has welcomed the investment, citing its potential to create thousands of high-tech jobs and attract further foreign direct investment in the tech sector. The data center is also expected to strengthen South Korea’s digital sovereignty by ensuring local availability of advanced computing resources.
“This collaboration between SK Group and AWS will be a game-changer in South Korea’s journey toward AI leadership. It will empower domestic enterprises and developers with world-class infrastructure,” said a government official.
Looking Ahead
With construction kicking off in late 2025 and full operations targeted for 2029, this ambitious project marks a transformational moment for South Korea’s digital future. As AI continues to reshape industries worldwide, the SK-AWS data center will help ensure South Korea remains at the forefront of the global AI race.
