With the rapid development of artificial intelligence (AI) technology, the global demand for high-performance computing infrastructure continues to soar. As one of the world's leading technology powerhouses, South Korea has been actively positioning itself in the AI sector. SK Group, the second-largest conglomerate in South Korea, has partnered with Amazon Web Services (AWS), the world's leading cloud computing service provider, to build the country's largest AI data center. This collaboration is not only set to solidify South Korea's position in the AI infrastructure domain but also to propel the development of AI across the entire Northeast Asia region.

Project Overview

The data center is located in the Ulsan Wepo Industrial Complex, approximately 305 kilometers southeast of Seoul. The project plans to deploy 60,000 graphics processing units (GPUs) with a power capacity of 100 megawatts. This scale far exceeds any existing data center in South Korea. For instance, the Korea National AI Computing Center plans to deploy only 15,000 GPUs.

SK Group and AWS will jointly invest trillions of Korean won in the project. SK Telecom and SK Broadband plan to invest 3.4 trillion Korean won (approximately 17.86 billion yuan) by 2028, with most of the funds allocated to the joint venture with AWS. AWS is expected to invest 4 billion US dollars (approximately 28.74 billion yuan) separately. The project will be carried out in phases:

● Phase One: Scheduled for completion in November 2027, with a 41-megawatt facility.

● Phase Two: Scheduled for completion in February 2029, expanding the computing power to 103 megawatts.

● Ultimate Goal: To expand the data center's capacity to 1 gigawatt, making it the largest AI data center hub in the Northeast Asia region.

Advantages of the Collaborating Parties

SK Group is the second-largest conglomerate in South Korea, with subsidiaries such as SK Telecom, SK Broadband, SK Hynix, and SK Gas. SK Telecom and SK Broadband, as the main drivers of AI infrastructure construction, possess strong technical capabilities and extensive industry experience. Additionally, SK Gas's liquefied natural gas combined heat and power plant is located near the data center, providing a stable power supply.

AWS is the world's largest cloud computing service provider, offering pay-as-you-go cloud platforms and application programming interfaces (APIs) to individuals, businesses, and governments. AWS has extensive experience in data center construction and operation and already operates and constructs data centers in Seoul and Incheon, South Korea. This collaboration combines AWS's technological strengths with SK Group's local resources, further enhancing both parties' competitiveness in the global AI market.

Impact of the AI Data Center Construction

The construction of this data center will mark a crucial step for South Korea in the field of AI infrastructure, enhancing its competitiveness in the global AI market. Moreover, the construction and operation of the data center will create numerous job opportunities and drive the development of related industries.

Meanwhile, with the rapid development of AI technology, the global demand for high-performance computing infrastructure is increasing. The data center constructed by SK Group and AWS will become an important part of the global AI infrastructure. Its large-scale GPU deployment and powerful computing capabilities will provide strong support for global AI research and applications.

In summary, the project to build South Korea's largest AI data center by SK Group and AWS is not only a significant strategic layout for South Korea in the AI field but also an important milestone in global AI infrastructure construction. As the project progresses, South Korea is expected to achieve greater breakthroughs in the AI field and become an important participant in global AI development.

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