SK Telecom and NVIDIA plan a gigawatt-scale AI cloud in South Korea, with the first AI factory set for 2027. The project will power sovereign, enterprise, and agentic AI systems while boosting Asia’s AI infrastructure capacity.
South Korea is preparing for a major expansion of its artificial intelligence infrastructure as SK Telecom and NVIDIA announced plans to build a gigawatt-scale AI cloud powered by NVIDIA’s DSX platform. The project is expected to strengthen the country’s AI computing capabilities and position South Korea as a leading AI hub in Asia.
The first AI factory is scheduled to begin operations in 2027, marking a significant step toward creating a large-scale ecosystem for AI development, training, and deployment.
Unlike traditional data centers that handle a broad mix of computing tasks, the new AI factories will be designed specifically for AI workloads, including model training, inference, and autonomous AI applications. The infrastructure will support sovereign AI models, enterprise AI systems, physical AI technologies, and agentic AI services across multiple industries.
A New Generation of AI Factories is Taking Shape
The project is built around NVIDIA’s DSX platform, a blueprint for AI factories that combines advanced GPUs, software, systems, facilities, and partner technologies. The goal is to deliver higher AI performance while improving energy efficiency and reducing the cost of producing AI-generated outputs.
SK Telecom teams up with NVIDIA to leverage its expertise in telecommunications networks, data centers, and enterprise services to support the rollout of the AI cloud. The company believes the infrastructure will help businesses accelerate AI adoption at scale.
The initiative also reflects growing demand for specialized AI infrastructure as organizations increasingly require powerful computing resources to develop and run advanced AI models.
Could South Korea become Asia’s largest AI cloud market
SK Telecom intends to expand the AI factory model beyond South Korea and eventually build one of Asia’s largest AI cloud ecosystems. As part of the agreement, the company will join NVIDIA’s Cloud Partner program, allowing it to provide AI cloud services based on NVIDIA’s latest hardware and software technologies.
There is an ongoing discussion between Chey Tae-won and Jensen Huang regarding the collaboration, which emphasized the need for stronger AI infrastructure across the region.
Beyond Infrastructure
The partnership extends beyond building data centers. NVIDIA and SK Group will jointly research next-generation AI factory architectures, focusing on:
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Accelerated computing technologies
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Advanced memory systems
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Energy efficiency improvements
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Data center operations
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Scalable and resilient AI services
The companies are also exploring technologies such as digital twins, robotics, and physical AI systems that connect real-world operations with intelligent software.
As Business Fortune observes, demand for AI computing continues to grow worldwide, the SK Telecom-NVIDIA alliance could help reshape Asia’s AI landscape. If successful, the project may transform South Korea from a major technology manufacturer into one of the region’s most important AI infrastructure providers, giving the way for a new era of AI-driven innovation and industrial growth.
FAQs
- What is the main goal of the SK Telecom-NVIDIA partnership?
The partnership aims to build a gigawatt-scale AI cloud infrastructure in South Korea to support large-scale AI development and deployment.
- When will the first AI factory become operational?
The first AI factory is expected to start operations in 2027.
- What types of AI services will the infrastructure support?
It will support sovereign AI, enterprise AI, physical AI, and agentic AI services.
- What makes an AI factory different from a traditional data center?
AI factories are specifically optimized for AI training, inference, and autonomous AI workloads, rather than general-purpose computing.
- What are the long-term plans for the project?
SK Telecom plans to expand the AI cloud ecosystem across Asia and become one of the region’s leading AI cloud operators.
