SK Telecom spins off data center unit in KRW 3.08 trillion deal

The spin-off splits the current SK Broadband operations into two distinct entities. The surviving SK Broadband will focus on its traditional fixed-line, media, and enterprise services, while the newly formed SK Horizon takes charge of expanding Korea’s AI data center infrastructure. SK Horizon will manage eight existing facilities and several projects currently under construction, aiming to reach a total capacity of 318 MW.

Under the agreement, SK Telecom will retain a 51% stake in the new company, maintaining management control. KKR will acquire a 29% stake, and the IMM-led consortium will hold the remaining 20%. This capital infusion is intended to provide the financial runway for large-scale expansion as the group accelerates its AI-driven strategy.

This restructuring completes a three-pillar framework for the group’s AI ambitions. SK Telecom will oversee broad strategy and global partnerships, SK Horizon will manage operational infrastructure, and the previously established SK Hyper will lead business development for future projects, targeting a massive capacity expansion toward 15 GW by 2035. The transition is expected to be finalized in the first quarter of next year, pending shareholder and regulatory approvals.