SK Telecom established SK Hyper as a 100% subsidiary on the 23rd to formalize its AI data center business, committing 750 billion won by 2030. Approximately 330 billion won will be executed within July, with the remainder disbursed in stages. Mirae Asset Securities raised SK Telecom's target price to 120,000 won on the 26th, a 22.4% increase, maintaining a 'buy' rating. The closing price on the 24th was 100,000 won. The initiative positions SK Telecom to strengthen its data center operator presence in Asia, leveraging what the company describes as the only domestic full AI stack encompassing infrastructure, models, and services.
SK Telecom Establishes SK Hyper with 750 Billion Won Investment Commitment
SK Hyper, a 100% subsidiary of SK Telecom, will handle site acquisition, power supply, substation and transmission network construction, customer acquisition, and operations for data center projects. The company announced on the 23rd that it will invest a total of 750 billion won by 2030 to establish the business foundation. Approximately 330 billion won is scheduled for execution within July, with the remaining amount to be disbursed in stages. Mirae Asset Securities analyst Choi Yu-jin characterized the establishment as "the first step toward formalizing the construction of a 15GW AI data center, one of Korea's three mega-projects announced at the end of June," describing it as "a signal for mid- to long-term earnings growth."
Ulsan Data Center Operations to Begin Late 2027, Scaling to 15GW by 2035
SK Telecom's AI data center in Ulsan is projected to begin progressive operations from late 2027, expanding to 5GW capacity. The facility is expected to extend to the Yeongnam and Seonam regions by 2035, ultimately achieving a 15GW build-out. Mirae Asset Securities forecasts that once funding, business models, and demand are finalized, company-wide revenue contribution will accelerate from 2028.
Mirae Asset Securities Cites Full AI Stack as Competitive Advantage
Mirae Asset Securities raised SK Telecom's target price to 120,000 won on the 26th, a 22.4% increase, and maintained a 'buy' rating. The firm assessed that SK Telecom is moving beyond its traditional telecom service provider identity, with data center profit growth expansion anticipated. Analyst Choi Yu-jin emphasized that SK Telecom is the only domestic company possessing a full AI stack, including infrastructure, models, and services, with additional support available at the group level. Choi stated, "The strategic choice of AI data center construction secures mid- to long-term growth momentum while providing a competitive edge over rivals in terms of structural changes in telecom services."
FAQ
What did SK Telecom announce on the 23rd regarding its AI data center business?
SK Telecom announced the establishment of SK Hyper, a 100% subsidiary dedicated to AI data center operations, with a total investment commitment of 750 billion won by 2030. Approximately 330 billion won is scheduled for execution within July, with the remainder to be disbursed in stages.
When will SK Telecom's Ulsan AI data center begin operations?
SK Telecom's AI data center in Ulsan is projected to begin progressive operations from late 2027, expanding to 5GW capacity and ultimately scaling to 15GW by 2035 through extensions to the Yeongnam and Seonam regions.
Why did Mirae Asset Securities raise SK Telecom's target price?
Mirae Asset Securities raised SK Telecom's target price to 120,000 won on the 26th, citing the establishment of SK Hyper and the AI data center initiative as signals of mid- to long-term earnings growth, with SK Telecom being the only domestic company possessing a full AI stack.
