SK Group and Amazon Web Services (AWS) have broken ground on a data center in Ulsan, Korea.

On August 29, the South Korean conglomerate’s telco business, SK Telecom, and its construction business, SK Ecoplant, held a groundbreaking ceremony with AWS and the Ulsan Metropolitan City in attendance.

The facility will be located at the Mipo National Industrial Complex and is set to house 60,000 GPUs. According to Chosun Biz, the data center will offer 103MW of capacity at completion and will be established by acquiring a site formerly operated by the SK Group’s chemicals subsidiary, SK Chemicals.

According to SK Telecom’s press release, the facility will use a hybrid cooling system, with each rack using between 20 to 40kW. SK Gas will provide liquified natural gas to SK Multi-Utility, which will produce energy for the data center.

The project will be built in phases, with 41MW worth of capacity available by November 2027 and the entire facility available for use by February 2029.

The construction agreement for the facility was signed in June, and Korea’s Ministry of Science confirmed in the same month that the project would see 7 trillion won ($5.11bn) invested in the region.

SK Telecom has also signed a memorandum of understanding (MoU) with the Ulsan Metropolitan City to potentially expand the facility into a gigawatt-scale data center.

AWS has a cloud region in South Korea, located in Seoul, with four availability zones that launched in 2016. The company is also building a data center in Seo-gu, Incheon.

In 2021, AWS announced it would be bringing its AWS Ground Station platform to the Seoul campus. The company previously partnered with SK Telecom on its Wavelength zone in the country.

Ulsan is located at the southeastern tip of the Korean peninsula, north of Busan. Most of South Korea’s data centers are concentrated in the area around Seoul, the capital.