SK Telecom, KT, and LG Uplus reported increased third-quarter data center revenues as South Korean telecoms accelerate AI data center investments. The three companies are expanding capacity amid expectations that potential US data center regulations following the Democratic Party's midterm election victory could drive global demand toward Asian facilities. Securities analysts project South Korea will emerge as a key alternative supply hub as Singapore, Tokyo, and Hong Kong reach capacity constraints, with Korean data centers positioned to serve both Asian and North American clients.
SK Telecom Targets 15GW Data Center Capacity by 2035
SK Telecom recorded third-quarter AI data center revenue of 126.1 billion won, a 6.2% year-over-year increase driven by higher utilization rates and expanded submarine cable infrastructure. The company set a target to build 15 gigawatts of data center capacity by 2035, the most ambitious plan among the three telecoms. The Ulsan AI data center project with Amazon Web Services as anchor tenant will begin Phase 1 operations with 41 megawatts in November 2027, expanding to 103 megawatts by early 2029. SK Telecom is negotiating specific terms with three to four global leasing clients targeting contracts in the first half of next year, with data centers scheduled to open in phases starting in the second half of 2029. The company's new subsidiary SK Hyper will focus on AI data center development projects.
KT Plans 1GW Expansion and Submarine Cable Investment by 2031
KT's subsidiary KT Cloud generated third-quarter revenue of 268.2 billion won, up 7.7% year-over-year, led by increased colocation sales from higher utilization at the Gasan data center and growing demand from public sector cloud migration and high-performance computing. The company plans to secure over 90Tbps of additional submarine cable capacity by 2031 to address global enterprise demand for Asian data centers, investing approximately 1 trillion won in submarine cable infrastructure with financing sourced through partnerships with global big tech companies. KT targets 1 gigawatt of new AI data center capacity by 2031, with 200 megawatts of projects currently confirmed through completed decision-making and site acquisition, and total planned capacity reaching 911 megawatts including unconfirmed volumes.
LG Uplus Accelerates Paju Data Center Completion to 2028
LG Uplus reported third-quarter corporate infrastructure revenue of 472.2 billion won, a 10.4% increase driven by data center colocation and design-build-operate projects. The company accelerated the completion target for four buildings at its Paju AI data center from 2030 to 2028 in response to confirmed customer demand. KB Securities characterized the schedule advancement as confirmation of a supplier-favorable environment in the Seoul metropolitan area AI data center market. LG Uplus will complete Building 1 (50 megawatts) in June 2027, with Buildings 2-4 finishing sequentially by end-2028 to reach total capacity of 200 megawatts. The company is pursuing two to three additional design-build-operate projects with asset managers and other external partners to achieve its mid-to-long-term goal of 400 megawatts total data center capacity.
FAQ
What data center capacity targets did SK Telecom announce?
SK Telecom set a goal to construct 15 gigawatts of data center capacity by 2035, with the Ulsan AI data center project beginning Phase 1 operations at 41 megawatts in November 2027 and expanding to 103 megawatts by early 2029.
Why are Korean telecoms expanding data center investments?
The three Korean telecoms are increasing data center capacity based on expectations that potential US data center regulations following the Democratic Party's midterm election victory could redirect global demand toward Asian facilities, with analysts projecting South Korea as a key alternative supply hub as other major Asian cities reach capacity limits.
