SK Telecom has begun construction of a large-scale data center dedicated to artificial intelligence (AI) in the city of Ulsan, approximately 370 kilometers southeast of Seoul.

SK Telecom, SK ecoplant, Amazon Web Services (AWS), and the local city government held a groundbreaking ceremony for the SK AI Data Center Ulsan, which is slated to be operational by the end of 2027.

Under a partnership deal signed earlier this year between SK and AWS, the world’s largest cloud provider, the data center is expected to support high-performance graphics processing unit (GPU)-based computing and achieve higher efficiency compared to similar existing centers through specialized hybrid cooling systems and a robust network infrastructure.

It will be the largest AI data center outside the Seoul metropolitan area and potentially a major Asia-Pacific hub.

The entire project, including SK and AWS investments, is projected to create more than 78-thousand jobs and generate 25 trillion won worth of economic impact over the next 30 years.

In a congratulatory speech to mark the groundbreaking, Choi Chang-won, chairman of the SK SUPEX Council —the conglomerate’s highest advisory board —called the AI data center in Ulsan a vital infrastructure that will build the future and lay the foundation for Korea's digital economy.