SK Telecom, NVIDIA Partner for Gigawatt AI Cloud by 2027

SK Telecom (NYSE: SKM) is doubling down on its AI ambitions, announcing plans to build a gigawatt-scale AI Cloud in South Korea in partnership with NVIDIA. The first phase of this ambitious project, leveraging NVIDIA’s DSX platform, is scheduled to go live in 2027, according to a joint statement released on June 7, 2026.

Positioned as a specialized AI Cloud, this infrastructure will focus on GPU-based computing tailored for artificial intelligence workloads, including training, inference, and agentic AI—think autonomous systems and advanced robotics. NVIDIA’s DSX architecture promises to maximize energy efficiency and minimize the cost of producing AI “tokens,” the essential building blocks of intelligence.

For SK Telecom, this project is a cornerstone of its ‘AI Native’ strategy, unveiled earlier this year at MWC Barcelona. The company is transitioning from its roots as South Korea’s largest wireless carrier into a vertically integrated AI and cloud infrastructure provider. This AI Cloud will build on SK Telecom’s existing investments, including its Haein GPU cluster launched in 2025 and partnerships with OpenAI and AWS for hyperscale AI data centers.

“Telecom networks are becoming national AI infrastructure,” NVIDIA CEO Jensen Huang said in the announcement. “With NVIDIA DSX, SK Telecom can build Korea’s AI cloud at scale and bring enterprise and physical AI to industries that power Korea and the world.”

Beyond the infrastructure itself, SK Telecom and NVIDIA plan to pursue joint research into next-generation AI factory architecture, focusing on innovations across chip design, memory technologies, and data center operations. SK Telecom will also become an NVIDIA Cloud Partner, integrating NVIDIA’s AI software stack and developer ecosystem into its services.

The economic and industrial stakes are significant. South Korea is already a global leader in semiconductors, robotics, and advanced manufacturing, all sectors poised to benefit from AI-driven optimization. SK Telecom’s AI Cloud aims to serve sovereign AI needs for domestic enterprises while potentially expanding its reach across Asia.

This announcement also reinforces NVIDIA’s growing presence in the AI infrastructure market. The DSX platform, built for ultra-efficient AI factory operations, includes software like DSX MaxLPS for cost optimization and DSX OS for managing multi-tenant environments. As AI demand surges globally, NVIDIA’s ability to enhance operational efficiencies presents a compelling value proposition for telcos and cloud providers.

For SK Telecom, the collaboration is a strategic play to secure a foothold in AI infrastructure as competition heats up. Omdia analysts have previously highlighted SKT’s strong positioning in sovereign AI markets, thanks to its full-stack approach and GPU monetization strategies. With AI increasingly moving from experimental to production-grade applications, SKT’s pivot could further entrench its leadership in both domestic and regional markets.

Investors will want to watch closely as this partnership develops. While SK Telecom’s stock is traditionally telecom-focused, its AI pivot adds a layer of growth potential tied to the rapidly expanding AI infrastructure market. Similarly, NVIDIA’s role in enabling hyperscale AI clouds solidifies its dominance in the GPU and AI systems space, even as rivals vie for a piece of the market.

The first AI factory coming online in 2027 will be a critical milestone, not just for SK Telecom and NVIDIA but for South Korea’s broader ambitions to lead in AI innovation. The project underscores the shifting dynamics in telecom and cloud computing, where AI-centric infrastructure is becoming as essential as 5G networks were a decade ago.

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