South Korea is taking a major step to expand its digital infrastructure, with SK Group and Amazon Web Services confirming a five billion dollar investment to build the nation’s largest AI-focused data centre in Ulsan. Construction will begin this September and the facility is planned to reach 100 megawatts by 2029, with ambitions to scale to one gigawatt. This signals Seoul’s intent to anchor advanced cloud and AI services more deeply in East Asia and reduce reliance on overseas data hubs.
For the global tech sector, this development sharpens the competitive edge in AI training capacity and low-latency services in a strategically vital region. Big cloud providers and hyperscale firms are likely to watch this closely, as it demonstrates how local partnerships can fast-track large-scale rollouts despite regional energy and land constraints.
Specialist vendors in liquid cooling, edge security and power management should see rising demand as the site grows. This also creates scope for software firms to test generative AI solutions closer to end users in North-East Asia, cutting delays and boosting performance for data-heavy tasks like real-time language processing and autonomous systems.
However, scaling responsibly remains crucial. A centre of this magnitude will draw scrutiny over power use and sustainability measures. Operators must balance carbon goals with performance promises, especially as data regulations tighten and clients demand transparent handling of personal and corporate data.
For global tech leaders and investors, the message is clear. Deep local ties, robust compliance and energy innovation will increasingly determine which cloud players win in Asia’s next wave of digital expansion. Firms able to build flexible ecosystems around these mega hubs will shape the pace and quality of the region’s AI transformation.
