[E-Daily Reporter Yun Junghoon ]SKTelecom(017670)and LG Uplus(032640)have both confirmed growth in their artificial intelligence data center (AIDC) businesses. Amid a slowdown in the telecommunications market, AIDC—identified as a future growth engine—has begun to emerge as a substantial source of revenue. Both companies are accelerating their business expansion by constructing large-scale data centers, primarily in Ulsan and Paju, Gyeonggi Province.

According to the telecommunications industry on the 4th, SKT and LG U+ confirmed the growth momentum of their AIDC businesses in their third-quarter 2026 earnings reports released that day.

On a consolidated basis, SKT reported revenue of 4.4973 trillion won and operating profit of 552.3 billion won, representing year-over-year increases of 13.1% and 1,040.3%, respectively. LGU+ saw revenue of 3.9813 trillion won during the same period, a 0.7% decrease from the same period last year, but its operating profit rose 84.1% to 297.6 billion won.

Notably, both companies’ AI infrastructure businesses stood out. SKT’s third-quarter AIDC revenue rose 6.2% to 126.1 billion won, while LGU+’s AIDC revenue increased 27.7% year-over-year to 131.7 billion won. This is significant because the growing demand for AI infrastructure is translating into actual revenue growth.

SKT, KTCorporation Bets Big on Ulsan AIDC… Aiming to Expand to 15 GW by 2035

Centered on the AIDC currently under construction in Ulsan, SKT KTCorporation has launched projects to break ground on AIDCs with a total capacity of 5 GW across South Korea.

The company has also completed organizational restructuring to support this business expansion. SKT launched SK Hyper in July and SK Horizon in August. SK Hyper is responsible for developing new data center projects and acquiring customers, while SK Horizon handles infrastructure operations and expansion.

SK Horizon is constructing new data centers with a combined capacity of approximately 180 MW in Ulsan (100 MW) and Seoul. SK Hyper is also in discussions with potential clients regarding business terms, primarily in Ulsan.

Third-quarter AIDC revenue grew, driven by higher utilization rates at existing data centers and increased subsea cable traffic. Capital expenditures (CAPEX) invested in SK Hyper’s data center business development during the third quarter totaled 148.6 billion won.

The medium- to long-term goals are even more ambitious. SK Hyper plans to build a total of 15 gigawatts (GW) of AIDC capacity in South Korea by 2035. The cost required for the first phase—the construction of 5 GW—is estimated at approximately $350 billion (about 464 trillion won), including servers and equipment. However, this is an estimated project cost rather than a confirmed investment amount.

The key challenges are securing funding and acquiring customers. SK Hyper plans to discuss funding with global Big Tech companies and investors while securing Asian firms—such as those in Japan and Taiwan—as key customers. Since domestic demand alone is insufficient to fill such large-scale facilities, the strategy involves securing long-term contracts with overseas customers and developing the facilities in phases to meet demand.

Jeong Seok-geun, CEO of SK Hyper, stated at a forum last month that the company is actively pursuing sales to secure big tech clients.

LGU+, AIDC Revenue Up 27.7%… Growth Accelerates with 200MW Facility in Paju

LGU+ is growing its AIDC revenue primarily through colocation and data center design, build, and operation (DBO) services. Colocation involves providing companies with server space, power, and cooling facilities. DBO involves designing and building data centers on behalf of clients and then managing their operation.

This revenue growth is attributed to rising demand from companies that, as the need for AI computing increases, prefer to entrust the construction of related infrastructure to specialized providers rather than building it themselves.

Revenue in the Enterprise Infrastructure segment, which includes AIDC, reached 472.2 billion won, a 10.4% increase compared to the same period last year. Driven by the expansion of the AI Contact Center (AICC) business, solution revenue also rose by 3.4% to 124.4 billion won.

To meet growing demand, LG Corp. is also constructing a 200-MW-class AIDC in Paju, Gyeonggi Province. The company plans to bring a total of four buildings online sequentially by 2028. As a first step, it will construct a 50-MW building—for which it has already secured a customer—with completion scheduled for June 2027.

Investment has also increased. LG Uplus’s third-quarter standalone CAPEX totaled 569.8 billion won, a 30.1% increase compared to the same period last year. This is due to expanded new investments in AIDCs. The company plans to leverage its existing data center operational experience and corporate customer base to develop Paju into a mid- to long-term growth hub.

Although the AIDC business has demonstrated growth momentum, it is expected to take some time before it gains full momentum. This is because AIDCs require massive initial investments—not only in land, power infrastructure, buildings, and cooling systems but also in high-cost GPUs and network equipment. Furthermore, it is a highly challenging business that requires securing customers to fill the facilities and recouping investment costs over a long period. In particular, for large-scale AIDCs, securing power and ensuring a stable supply are critical factors that determine the success or failure of the business. Business schedules and profitability may also vary depending on the pace of investment by global Big Tech companies and the status of domestic power infrastructure expansion.

Currently, AIDC accounts for approximately 3.3% of LG Uplus’s total third-quarter revenue and about 2.8% of SKTelecom’s, indicating significant room for growth.

A telecommunications industry official stated, “As demand for AI infrastructure increases, the growth potential of the data center business is becoming evident,” adding, “Going forward, competitiveness will hinge on how many customers companies can secure and how effectively they can increase actual utilization rates to generate a return on investment.”