South Korea’s SK Group has partnered with Amazon Web Services to expand its presence in the global market for artificial intelligence computing services.
As part of this collaboration, the two companies will construct a 103-megawatt artificial intelligence data center at the Mipo National Industrial Complex in Ulsan province. This location was chosen for its strategic proximity to an SK Gas power plant, ensuring a reliable electricity supply. SK and AWS are expected to break ground in August.
At Mobile World Congress 2025, SK Telecom CEO Ryu Young announced that the new facility will serve a range of clients, from established businesses to startups.
Domestic Tech Capabilities
The partnership aligns with Seoul’s initiatives to decrease reliance on foreign supply chains.
According to a report from the Korea Economic Daily, AWS plans to expand its presence in South Korea until 2027, with a significant investment of $5.9 billion aimed at enhancing the country’s digital transformation. However, local companies such as Naver, Kakao and NHN are competing with international giants such as Google and Microsoft for a share of the market segment.
In addition to establishing local data center capabilities, the South Korean government recently announced investments to support the development of semiconductors for military applications.