Amazon Web Services (AWS) and SK Group announced on the 22nd that they will jointly establish a super-large AI dedicated data center called 'AWS AI Zone' in Ulsan.
AWS officially announced its strategic partnership with SK Group along with the expansion of its cloud infrastructure in Korea. AWS and SK Group plan to collaborate in the fields of AI data centers, AI semiconductors, and AI solutions. This partnership is being pursued separately from AWS's long-term investment, in which it announced plans to invest approximately $5.88 billion (approximately 7.85 trillion won) in Korea by 2027.
The Ulsan data center is expected to begin operations in 2027. AWS explained that it anticipates creating up to 78,000 direct and indirect jobs as the scale and operation of the data center expand in the future.
The AI Zone to be established in Ulsan will provide top-level network operations, semiconductor supply chains, and efficient power infrastructure based on the combined capabilities developed through a 15-year partnership between AWS and SK Group.
SK Group will lead the construction of the data center, and AWS will build the AI Zone in Ulsan to broadly provide AWS's AI and cloud capabilities to Korean customers.
Major affiliates of SK Group participating in this project include SK Telecom, SK Broadband, SK hynix, SK Gas, SK Chemicals, SK Multi Utility, and SK AX, consolidating the group's core capabilities across ICT, energy, and semiconductors.
Ulsan is assessed as the most suitable region for the establishment of the AI Zone due to SK Group's stable gas supply network, advanced energy solutions, and optimal land availability. It also has favorable geographic conditions for underwater cable installation and an industrial-friendly environment.
The AI Zone to be created in Ulsan is designed to meet global performance and security standards. It will feature AI-optimized computing systems, ultra-dense rack configurations, a hybrid cooling system combining air and liquid cooling, and a stable and robust network infrastructure.
The new cloud infrastructure is part of the 'AI Infrastructure Superhighway' strategy announced by SK Telecom in 2024, which is involved in SK Group's AI initiatives. SK Group plans to establish a core hub of hyperscale AI infrastructure through the AI Infrastructure Superhighway project. SK Group aims to enhance global AI competitiveness by processing AI workloads arising in the country domestically.
Prasad Kalyanaram, vice president of AWS Infrastructure Services, said, 'When SK Group's excellent technical capabilities are combined with AWS's comprehensive AI cloud services, it will support customers of all sizes and industries in Korea to build and utilize enhanced security AI technologies for innovation.' He added, 'This partnership symbolizes AWS's contribution to the future of AI in Korea, and we are very excited about the achievements we will accomplish together.'
Chey Tae-won, chairman of SK Group, noted, 'I am pleased to combine SK Group's technical capabilities with AWS, the world's leading cloud company, to build the core infrastructure for a Korean-style AI ecosystem and create a strong new momentum for the 'AI Highway.' He added, 'In the future, SK will continue to establish AI data center hubs in the Asia-Pacific (APAC) region by leveraging the unique strengths of each affiliate and global partnerships.'