SK Telecom (SKT) is spinning off the data center assets of its subsidiary SK Broadband to establish SK Horizon, a new entity focused on AI data center (AIDC) infrastructure and submarine cable operations. The South Korean operator signed deals with global investment firm KKR and a consortium of IMM Investment and Stonebridge Capital for a combined investment of 3.08 trillion Korean won (US$2.24 billion) in the new company. SKT aims to complete the spin-off from SK Broadband by the first quarter of next year, pending regulatory approvals and an extraordinary shareholders meeting.
Once the transaction closes, KKR will hold a 29% stake and the IMM-Stonebridge consortium will hold 20%, while SKT will remain the largest shareholder with 51% and retain management control. SK Horizon will operate eight existing data centers in Seocho, Ilsan, Bundang, Gasan, Centum, Yangju and Pangyo, plus two new AIDCs under construction in Ulsan and Guro, providing total IT capacity of 318MW. The company will also pursue phased expansion of submarine cable infrastructure. Kim Seong-soo, CEO of SK Broadband, has been named CEO of SK Horizon.
The restructuring completes the governance changes SKT says are needed to accelerate its AIDC expansion. SKT will oversee the SK Group's AIDC business overall, while SK Horizon handles existing infrastructure and submarine cables. Last month, SKT established SK Hyper, a $510 million subsidiary focused on building GW-scale AI data centers, with a target of 15GW total capacity by 2035. Kim said the move is "a proactive measure aimed at strengthening expertise and enabling faster execution in the AIDC business."
What remains unknown is how the new structure will perform against those capacity targets or whether regulatory approvals will arrive on schedule. The dossier does not specify the expected timeline for the Ulsan and Guro facilities, the financial terms beyond the combined investment amount, or how SK Horizon's submarine cable expansion will be funded. The reporting is based on a single secondary source, so independent confirmation of the deal's details is not yet available.