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Over the past several weeks, SK Telecom, KT, and LG Uplus have each unveiled major initiatives centered on AI infrastructure, underscoring how telecom operators increasingly see AI platforms and digital infrastructure as future growth engines
In sum – what to know:
Infrastructure pivot – SK Telecom, KT, and LG Uplus are investing heavily in AI data centers, networking, and compute infrastructure beyond their traditional telecom businesses.
National strategy – The investments align with South Korea’s AI G3 initiative, which aims to position the country among the world’s leading AI powers.
Different approaches – While SK Telecom is pursuing multi-gigawatt AI campuses, KT is emphasizing connectivity and DCI, and LG Uplus is focusing on AI-ready operations and cooling technologies.
South Korea’s largest telecom operators are accelerating investments in AI infrastructure as they expand beyond traditional connectivity services into hyperscale data centers, AI computing, and next-generation networking.
Over the past several weeks, SK Telecom, KT, and LG Uplus have each unveiled major initiatives centered on AI infrastructure, underscoring how telecom operators increasingly see AI platforms and digital infrastructure as future growth engines. The projects also align with the South Korean government’s AI G3 initiative, which seeks to position the country among the world’s three leading AI powers through investments in AI infrastructure, semiconductors and related technologies.
Among the three operators, SK Telecom has announced the most ambitious expansion. The carrier plans to develop up to 15GW of AI data center capacity by 2035, beginning with an initial 5GW scheduled to come online in phases starting in 2029. The first projects include expanding its Ulsan AI data center into a multi-gigawatt campus while developing an additional large-scale facility in the country’s southwest.
SK Telecom said the initiative will combine capabilities across SK Group, including semiconductor technologies, energy solutions, and data center expertise, while supporting South Korea’s broader AI ambitions. The company has also partnered with Nvidia to develop a gigawatt-scale AI cloud based on Nvidia’s AI factory architecture, with the first deployment expected in 2027.
KT has outlined a broader AI transformation strategy backed by approximately KRW18 trillion ($12 billion) in investments over the next three years. Around KRW5 trillion will be allocated to AI data centers, with the operator targeting 1GW of AI infrastructure capacity.
Beyond data centers, KT plans to strengthen the connectivity required to support AI workloads. The company intends to invest approximately KRW8 trillion in network infrastructure, including data center interconnection (DCI), 6G technologies and satellite communications, while allocating roughly KRW1 trillion to expand submarine cable capacity in anticipation of growing international AI traffic.
KT executives have emphasized that connectivity will become a key differentiator for AI infrastructure, particularly as demand grows for linking hyperscale facilities and supporting international data flows.
Meanwhile, LG Uplus is positioning itself as what it describes as an “AI Factory Operator,” anchored by a new 200MW AI data center currently under construction in Paju.
The campus has been designed to support both air and liquid cooling from the outset, with infrastructure capable of accommodating high-density AI deployments. The first 50MW building, scheduled for completion next year, has already been fully contracted, according to the company. LG Uplus is targeting KRW5 trillion in cumulative AI compute orders by 2030 as it expands its AI infrastructure business.
While each operator is pursuing a different strategy, their announcements reflect a common shift in priorities. Rather than focusing solely on traditional telecom services, South Korea’s leading carriers are expanding across the broader AI infrastructure stack, including data centers, networking, AI compute, and supporting technologies.
The investments in AI infrastructure by Korean carriers also reinforce the country’s national AI strategy. The government’s AI G3 initiative identifies AI infrastructure, including data centers and related digital infrastructure, as a strategic priority as South Korea seeks to strengthen its position in the global AI ecosystem.
