SK Telecom is creating a new artificial intelligence (AI) infrastructure company, SK Horizon, and has lined up Won3.08tn ($2.23bn) in equity funding from US-based KKR and the IMM Investment-Stonebridge consortium to support its buildout of data centre capacity in South Korea.
The investment will accompany the split of SK Broadband into two entities: an existing business that will continue to run broadband, media and enterprise operations, and SK Horizon, which will house the group’s data centre and submarine cable assets.
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SK Telecom said the move “strengthen[s] its AIDC [AI data centre] operational expertise”, while enabling it to “expand into a range of AI infrastructure businesses going forward”.
“In particular, its streamlined decision-making structure is expected to enable the company to more effectively secure funding for key business areas, including through external investment”, the South Korean group added.
Once the transaction closes, KKR will own 29% of SK Horizon and the IMM consortium 20%, with SK Telecom keeping a 51% stake and management control.
SK Horizon will be tasked with operating and scaling AI data centre infrastructure with a planned total capacity of 318MW.
Its portfolio will include eight existing facilities in Seocho, Ilsan, Bundang, Gasan, Centum, Yangju and Pangyo, in addition to projects under development in Ulsan and Guro.
The company will also expand submarine cable assets, which SK Telecom sees as a key part of AI-related digital infrastructure.
The restructuring also clarifies roles across SK Telecom’s AI data centre operations.
SK Telecom will direct overall strategy and work with global technology partners.
SK Horizon will focus on operations and physical expansion of current assets, while SK Hyper, a unit launched in July, will lead development of new gigawatt (GW)-scale projects.
SK Hyper is targeting phased opening of 5GW by 2029 and expansion to 15GW by 2035.
The company expects to complete the spin-off and establish SK Horizon in the first quarter of 2027, pending shareholder and regulatory approvals.
SK Broadband chief executive Kim Seong-soo is expected to concurrently head SK Horizon after board approval.
“This governance restructuring is a proactive measure aimed at strengthening expertise and enabling faster execution in the AIDC business,” said Kim.
“As an AIDC infrastructure company, we will continue to scale up SK Horizon and grow it into Korea’s leading data centre operator.”
KKR partner Keith Kim said: “We are pleased to support SKT as it establishes SK Horizon and expands its AI data centre infrastructure platform in Korea.
“SK Horizon brings together an established operating platform, capacity under development and a strong strategic partner. Korea’s advanced digital ecosystem and growing demand for AI capacity provide a strong foundation for SK Horizon’s next phase of growth.”
