SK Telecom (SKM) Announces Plan for 15GW AI Data Center Capacity

SK Telecom Co. Ltd. (NYSE:SKM) is one of the undervalued stocks to buy according to the Wall Street. On July 5, SK Telecom announced a plan to construct an AI data center capacity of up to 15GW, aiming to establish South Korea as a primary AI infrastructure hub in Asia. The company will spearhead the project by utilizing SK Group’s full-stack capabilities in semiconductors, energy solutions, and data center operations to address the surging global demand for high-performance computing infrastructure.

The project will be rolled out in stages, with an initial 5GW of capacity scheduled to come online starting in 2029. This includes the expansion of the current Ulsan facility into a GW-scale cluster and new developments in the southeastern and southwestern regions. The initiative is designed to align with the South Korean government’s “AI G3” strategy and is positioned as a national strategic asset, comparable in scale to historical infrastructure milestones like the Gyeongbu Expressway.

SK Telecom (SKM) Announces Plan for 15GW AI Data Center Capacity

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To manage the substantial capital requirements (potentially reaching KRW 70 trillion for a 1GW-class facility) SK Telecom Co. Ltd. (NYSE:SKM) plans to utilize a combination of internal investment, project financing, and long-term contracts with global anchor tenants.

SK Telecom Co. Ltd. (NYSE:SKM) is a South Korean telecommunications giant. It provides mobile voice, data, and wireless broadband services, along with enterprise solutions such as cloud, AI, and security platforms. The company also invests in digital businesses, including media, e-commerce, and mobility services.

While we acknowledge the risk and potential of SKM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SKM and that has 10,000% upside potential, check out our report about the cheapest AI stock.

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