SK Telecom is carving out its AI data center assets into a new company, SK Horizon, as it looks to accelerate infrastructure expansion for the booming AI market.
The Korean operator said it will split wholly owned subsidiary SK Broadband into two entities: the surviving SK Broadband, which will focus on fixed-line, media and enterprise services, and SK Horizon, which will house its AI data center and submarine cable businesses. The spinoff is expected to close in the first quarter of next year, pending shareholder and government approvals.
Alongside the restructuring, SKT secured a combined KRW 3.08 trillion, or roughly $2.2 billion, equity investment from funds managed by KKR and the IMM Investment-Stonebridge consortium. Once the transaction is completed, SKT will retain a controlling 51% stake in SK Horizon, while KKR and the IMM consortium will hold 29% and 20%, respectively.
SK Horizon will be responsible for expanding SKT’s AI data center footprint to 318 MW across eight operating facilities, including sites in Seocho, Ilsan, Bundang, Gasan, Centum, Yangju and Pangyo, plus new AI data centers under construction in Ulsan and Guro. It will also pursue phased expansion of submarine cable infrastructure, which SKT said is critical to supporting global AI workloads.
The move builds on SKT’s July launch of SK Hyper, which is focused on developing new AI data center projects.
Read the full press release here.