South Korean telco SK Telecom is set to sell a minority stake in its Ulsan data center, according to a report by Chosun Biz.

SK Telecom is in talks to sell up to 49 percent equity in the facility for 2 trillion won ($1.3bn), with 29 percent going to investment firm KKR and the rest going to a consortium formed by Korean investment companies IMM Investment and Stonebridge.

Details of the sale were first reported by the Korea Economic Daily in December 2025.

The facility is being built at a site formerly owned by the SK Group’s chemicals subsidiary and is the product of a partnership between the conglomerate and AWS.

The construction agreement for the facility was signed in June 2025, and the project began construction in early September 2025. At the time, estimates indicated that 41MW worth of capacity would be available by November 2027 and that the entire facility, amounting to 103MW of capacity, would be operational by February 2029.

But SK Telecom also announced back in November that the Ulsan facility would be expanded to accommodate 1GW of capacity, around ten times more than its previous targeted capacity.

SK Telecom belongs to SK Group, one of South Korea’s largest conglomerates.

The conglomerate has been reaping the rewards of the AI boom. SK Group owns memory chipmaker SK Hynix, which boasted record-breaking profits of 40.35 trillion won ($26bn) for the first quarter of 2026 on the back of overwhelming demand.