SK Group and Amazon Web Services to Invest $5 Billion in South Korea's Largest AI Data Centre
2 Sources
2 Sources
[1]
South Korea says SK and Amazon to invest $5 bln in country's biggest data centre
SEOUL, June 20 (Reuters) - South Korea's SK Group will invest around 7 trillion won ($5.11 billion) including $4 billion from Amazon Web Services, Amazon's cloud services provider, to build a data centre in the southern city of Ulsan, the Science Ministry said on Friday. The AI data centre, which will be the country's largest, will break ground in September and be fully operational with a capacity of 100 megawatts by 2029, the ministry said in a statement. SK Group Chairman Chey Tae-won said he planned to expand the data centre's capacity to one gigawatt in the future and make it a global hub that handles domestic AI demand during a meeting attended by President Lee Jae Myung and tech CEOs. Artificial intelligence was crucial for South Korea's growth, he said. "It may set a good example that South Korea's high-tech industry is possible not only in the metropolitan area but also in the provinces," Lee said. South Korea's AI-related stocks on Friday extended a rally on policy optimism, with SK Hynix (000660.KS), opens new tab rising more than 3%, Kakao (035720.KS), opens new tab surging 11%, and LG CNS (064400.KS), opens new tab gaining 9%, leading the benchmark KOSPI (.KS11), opens new tab above a key milestone of 3,000 points for the first time in 3-1/2 years. The official announcement follows media reports earlier this month that SK Group and Amazon Web Services were building a data centre in South Korea. ($1 = 1,368.7600 won) Reporting by Hyunsu Yim and Jihoon Lee Editing by Ed Davies Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence
[2]
South Korea says SK and Amazon to invest $5 billion in country's biggest data centre
South Korea's SK Group will invest around 7 trillion won ($5.11 billion), including $4 billion from Amazon Web Services, Amazon's cloud services provider, to build a data centre in the southern city of Ulsan, the Science Ministry said on Friday. The AI data centre, which will be the country's largest, will break ground in September and be fully operational with a capacity of 100 megawatts by 2029, the ministry said in a statement. SK Group Chairman Chey Tae-won said he planned to expand the data centre's capacity to one gigawatt in the future and make it a global hub that handles domestic AI demand during a meeting attended by President Lee Jae Myung and tech CEOs. Artificial intelligence was crucial for South Korea's growth, he said. "It may set a good example that South Korea's high-tech industry is possible not only in the metropolitan area but also in the provinces," Lee said. South Korea's AI-related stocks on Friday extended a rally on policy optimism, with SK Hynix rising more than 3%, Kakao surging 11%, and LG CNS gaining 9%, leading the benchmark KOSPI above a key milestone of 3,000 points for the first time in 3-1/2 years. The official announcement follows media reports earlier this month that SK Group and Amazon Web Services were building a data centre in South Korea. ($1 = 1,368.7600 won)
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South Korea's SK Group and Amazon Web Services announce a joint investment of $5.11 billion to build the country's largest AI data centre in Ulsan, set to be operational by 2029 with plans for future expansion.
South Korea's Ambitious AI Infrastructure Project
South Korea is set to become home to its largest artificial intelligence (AI) data centre, thanks to a significant investment from SK Group and Amazon Web Services (AWS). The Science Ministry announced that SK Group will invest approximately 7 trillion won ($5.11 billion), with AWS contributing $4 billion of that sum, to construct the facility in the southern city of Ulsan 12.
Source: Reuters
Project Timeline and Specifications
The groundbreaking for this monumental project is scheduled for September, with full operational capacity expected by 2029. Initially, the data centre will boast a capacity of 100 megawatts, making it the largest of its kind in the country 12. However, SK Group Chairman Chey Tae-won has even more ambitious plans for the future.
Future Expansion and Global Aspirations
During a meeting attended by President Lee Jae Myung and various tech CEOs, Chairman Chey Tae-won revealed his vision to expand the data centre's capacity to one gigawatt. This expansion aims to transform the facility into a global hub capable of handling domestic AI demand 12. This move underscores South Korea's commitment to positioning itself at the forefront of AI technology and infrastructure.
Government Support and Economic Impact
President Lee Jae Myung expressed his support for the project, stating, "It may set a good example that South Korea's high-tech industry is possible not only in the metropolitan area but also in the provinces" 12. This sentiment highlights the government's interest in promoting technological development beyond the traditional tech hubs.
Market Response and Stock Rally
The announcement of this massive investment has had a significant impact on South Korea's financial markets. AI-related stocks experienced a notable rally, driven by policy optimism. SK Hynix saw a rise of over 3%, while Kakao surged by 11%, and LG CNS gained 9% 12. This positive market response led the benchmark KOSPI to surpass the key milestone of 3,000 points for the first time in 3.5 years, reflecting investor confidence in South Korea's AI initiatives.
Strategic Importance of AI for South Korea
Chairman Chey Tae-won emphasized the crucial role of artificial intelligence in South Korea's future growth 12. This investment in AI infrastructure aligns with the country's broader strategy to maintain its competitive edge in the global technology landscape and foster innovation across various sectors of the economy.
Collaboration between SK Group and Amazon Web Services
Source: Economic Times
The partnership between SK Group, a major South Korean conglomerate, and Amazon Web Services, a leading global cloud services provider, represents a significant collaboration in the tech industry. This joint venture combines SK Group's local expertise and resources with AWS's global reach and cloud computing capabilities 12.
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