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The firm said the facility is part of its mid- to long-term strategy to secure capacity to supply 1GW of AI data centers in South Korea by 2031
In sum – what to know
KT adds 50MW – KT Cloud has broken ground on a 50MW AI-dedicated data center in Ansan, with completion targeted for 2029 and liquid cooling across all server rooms.
SK targets 15GW – SK Hyper is seeking $350 billion for the first 5GW phase of a planned 15GW South Korean data-center buildout targeted for completion by 2035.
Investment rises – Cushman & Wakefield expects South Korea to require $13.6 billion in capital expenditure for its colocation data-center pipeline through 2030, with 255MW already pre-leased as of H1 2026.
KT Cloud has broken ground on a 50MW AI-dedicated data center in Ansan, Gyeonggi Province, adding to a growing pipeline of South Korean projects aimed at supporting AI infrastructure.
The Ansan AI Data Center will have a total floor area of about 36,878 square meters, with two underground levels and nine above ground. Completion is targeted for 2029.
KT Cloud said the facility is part of KT’s mid- to long-term strategy to secure capacity to supply 1GW of AI data centers by 2031.
The company plans to use designs aimed at supporting high-density, high-heat AI servers, including liquid cooling in all server rooms. The facility will also incorporate designs intended to accommodate next-generation high-performance GPUs, with reinforced server-room floors and building structures to support higher equipment loads.
Kim Bong-gyun, CEO of KT Cloud, said the Ansan project incorporates “next-generation design technology and power and cooling infrastructure optimized for high-density AI servers.”
The Ansan project is part of a broader KT Cloud development program. The company is also developing a 50MW data center in the Cheongna area of Incheon, with construction scheduled to start in the fourth quarter of 2026 and completion targeted for the first quarter of 2030.
KT Cloud has also started construction of a data center in Gunsan with SGC Energy. That facility is initially planned to offer 60MW and is targeted for live operation in the first quarter of 2028, with the potential to scale to 300MW. The company launched its 40MW Gasan facility in November 2025. The five-story site features liquid cooling and offers 26MW of IT capacity.
Meanwhile, SK Hyper, the AI data-center development unit of SK Telecom, is seeking $350 billion to fund the first 5GW phase of a planned 15GW data-center buildout in South Korea by 2035, according to Korean press reports.
SK Hyper plans to secure an initial round of outside capital between the end of 2026 and early 2027, followed by additional fundraising over the next three to four years. The company plans to share the total cost with data-center tenants and outside investors.
SK Hyper is currently developing a 900MW project in Ulsan and is working with Amazon Web Services on a 100MW data-center project. The company is also in discussions with the South Korean government to secure additional sites.
SK Telecom established SK Hyper as a subsidiary in July 2026.
South Korea faces high development costs
The project announcements come as South Korea’s data-center market faces continued demand for capacity as AI, cloud services and digital infrastructure expand.
Cushman & Wakefield estimates that South Korea will require approximately $13.6 billion in capital expenditure to support its future colocation data-center pipeline through 2030.
The research firm forecasts approximately $4.1 billion in annual colocation rental revenue in South Korea by 2030. The country recorded approximately 255MW of pre-leased data-center capacity as of H1 2026, according to the report.
Cushman & Wakefield also estimates that data-center development costs in South Korea, including land, are approximately $13 million per MW, placing the country among the most expensive development markets in Asia Pacific.
The firm said the cost highlights the investment required to deliver next-generation digital infrastructure in the market.
Cushman & Wakefield said Asia Pacific’s total data-center capacity is projected to increase 2.7 times by 2030, supported by a development pipeline of more than 26,000MW.
