[Edaily Reporter Kim Hyun-ah ] SKTelecom(017670)is reorganizing its artificial intelligence data center (AI DC) business around three pillars: SKT, SK Horizon, and SK Hyper. SKT will be responsible for the overall business strategy and collaboration with global Big Tech companies, while the newly established SK Horizon will focus on existing data center operations and infrastructure expansion, and SK Hyper will concentrate on the development of large-scale new AI DCs.

SKT has secured a total investment of 3.08 trillion won for SK Horizon from financial investors (FIs), including KKR, IMM Investment, and the StoneBridge consortium. The strategy is to spin off the AI DC business into a separate entity to attract external capital and accelerate large-scale infrastructure investments.

Under the spin-off of SK Broadband announced by SKT on the 27th, the AI data center and submarine cable businesses will be transferred to the newly established company, SK Horizon. Approximately 100 of SK Broadband’s total workforce of about 2,500 employees will also move to the new entity. The surviving company, SK Broadband, will focus on strengthening the competitiveness of its fixed-line, media, and enterprise businesses.

SK Horizon will manage infrastructure totaling 318 MW, including eight data centers currently in operation and AI data centers under construction in Ulsan and Guro. It will also gradually expand its submarine cable business, which is essential for global AI operations.

SK Telecom cited “further restructuring of the AI infrastructure business to enhance expertise, enable swift decision-making, and facilitate concentrated investment” as the rationale behind this reorganization. The plan is to spin off the AI data center and submarine cable businesses into separate entities to boost expertise and accelerate the attraction of large-scale investment and business expansion.

However, for the time being, Kim Seong-su, the current CEO of SK Broadband, will serve concurrently as CEO of both SK Broadband and SK Horizon. Although the businesses are being separated into distinct legal entities, the fact that the existing management team will lead both companies suggests that, in the initial phase, the focus is on business continuity and a stable transition rather than organizational separation. Once the personnel spin-off procedures are completed, the appointment of the CEO will be finalized by the SK Horizon board of directors.

3.08 trillion won in investment secured… Expansion through external capital

The most notable aspect of this restructuring is the injection of large-scale external capital into SK Horizon.

SKT has secured a total investment of 3.08 trillion won from a consortium comprising KKR, IMM Investment, and StoneBridge in connection with an equity investment in SK Horizon. Upon completion of the investment, SKT will retain a 51% stake and maintain management control, while KKR will hold 29% and the IMM consortium will hold 20%.

The funds raised will be used for the further expansion of SK Horizon’s AI data centers and the development of related infrastructure. Since AI data centers require massive investments not only in construction but also in power, cooling, and networking, the plan is to accelerate business expansion by leveraging external investment.

SKT’s decision to bring in external investors while retaining management control can be seen as a strategy to share the capital burden required for AI data center expansion while securing business leadership.

SKT handles strategy, Horizon handles operations, and Hyper handles new development

With the launch of SK Horizon, the roles of SK Hyper—established last July—have also become clearer.

SKT oversees the entire AI DC business, sets business strategy and direction, and collaborates with global big tech companies. SK Horizon is responsible for the operation and expansion of existing infrastructure, such as AI DCs and submarine cables. SK Hyper identifies and develops new large-scale AI DC projects.

SKT outlined the division of roles as follows: “SKT oversees the AI DC business, SK Horizon handles operations and expansion, and SK Hyper develops GW-scale projects.”

SK Hyper aims to gradually expand its AI DC capacity to 5 GW by 2029 and 15 GW by 2035. Under this structure, SK Horizon will manage and scale up the currently operating infrastructure, SK Hyper will develop the next phase of ultra-large-scale projects, and SKT will coordinate the overall business direction and global partnerships.

As AI data centers evolve into large-scale infrastructure projects requiring the simultaneous procurement of power, land, and networks, the company has divided business functions among specialized subsidiaries and differentiated its investment approaches.

Spinning Off AI Data Centers Following the Full Acquisition of SK Broadband

This reorganization is also in line with KTCorporation’s previous move to make SK Broadband a wholly-owned subsidiary.

By securing 100% ownership of SK Broadband and reducing constraints on business restructuring, the company has created a structure that allows it to spin off the high-growth AI DC and submarine cable businesses to attract external investors.

The existing telecommunications, media, and enterprise businesses will remain with SK Broadband, while the AI infrastructure—which requires massive capital—will be housed in a separate entity to attract specialized investors. SK Telecom can now grow its AI infrastructure business by leveraging external capital while retaining management control.

The company has also separated existing assets from new developments based on the nature of the AI infrastructure business. While SK Horizon will expand its business scale based on the data centers and submarine cables it currently operates, SK Hyper will embark on the development of new, ultra-large AI data centers, targeting 5 GW by 2029 and 15 GW by 2035.

SKT has allocated separate organizational resources and capital because the center of gravity in the AI competition is shifting beyond model development to large-scale infrastructure such as GPUs, data centers, power, and networks.

However, there are many challenges to overcome before the 3.08 trillion won in external investment and the 15 GW target for 2035 can translate into actual business results. In addition to securing large-scale power and land, the company must secure global Big Tech and AI companies as long-term customers.

The key question is whether the 3.08 trillion won in external capital and the division of roles among the three legal entities will actually translate into securing AI data center contracts, as well as power and land. All eyes are on whether SKT’s AI infrastructure strategy—which sets a 15 GW target for 2035—will go beyond mere declarations and prove itself through business results.