SK Hyper CEO outlines $350 billion first-phase AI data-center plan

SK Hyper CEO Chung Suk-geun said the company is discussing financing with technology companies and financial investors for an AI data-center buildout in South Korea. It is targeting the end of 2026 or early 2027 for a first round of external capital, but has disclosed no commitments.

Chung put the cost of the first 5 gigawatts of capacity at about $350 billion, including servers and other equipment. That phase accounts for one-third of SK Hyper’s wider 15 GW target for 2035, and SK Telecom says the first 5 GW is scheduled to open in phases beginning in 2029.

Rather than fund the full buildout upfront, Chung said SK Hyper expects to share project costs with data-center tenants and outside investors. The company plans additional fundraising over the following three to four years and will adjust the pace of investment to actual demand. He said the plan requires customers beyond South Korea, including demand from Japan and Taiwan.

Before the interview, SK Telecom described the broader financing model as a combination of company investment, strategic-partner investment, long-term customer contracts and project financing. It said expansion beyond the first 5 GW would depend on market demand and other conditions.

Separately, SK Telecom said its board approved up to KRW 750 billion in phased capital contributions to SK Hyper through 2030 while retaining full ownership. That parent-company authorization is distinct from Chung’s $350 billion cost estimate for the first phase.