SK Telecom is establishing a new AI data center (DC) company, SK Horizon, by splitting off its wholly-owned subsidiary, SK Broadband. The new company has secured an investment of 3.8 trillion won from global investment firms KKR and the IMM Investment-Stonebridge consortium, enhancing its position as an "Asian AI infrastructure hub."
On August 27, SK Telecom announced its plan to split SK Broadband into an existing company (SK Broadband) and the newly formed SK Horizon. The split ratio is based on net asset book values, with the existing company at 0.8351323 and the new company at 0.1648677.
The existing company will focus on innovation in wired, media, and enterprise businesses, while SK Horizon will oversee the expansion of domestic AI DC infrastructure. SK Horizon will manage a total of 318MW of infrastructure, including eight operational data centers in Seocho, Ilsan, Bundang, Gasan, Centum, Yangju, and Pangyo, as well as new AI DCs under construction in Ulsan and Guro. The company will also gradually expand its subsea cable network. Kim Sung-soo, CEO of SK Broadband, will also serve as the head of the new company.
Upon completion of the phased investment, KKR and the IMM consortium will hold 29% and 20% stakes in SK Horizon, respectively, while SK Telecom will maintain a 51% stake, ensuring its status as the largest shareholder and retaining management control. KKR is a global investment firm managing over $1 trillion in infrastructure assets and is pursuing this investment as part of its Asia-Pacific infrastructure investment strategy.
Founded in 1999, IMM Investment is a domestic alternative investment firm managing over $7.5 billion in venture capital, growth capital, and infrastructure. Stonebridge Capital is a private equity firm managing approximately $2.5 billion. The funds raised will be used for further expansion of SK Horizon's AI DC and infrastructure development.
With this restructuring, SK Telecom has completed its AI DC initiative alongside the specialized company SK Hyper, established in July. SK Telecom will oversee the entire group’s AI DC business and collaborate with global tech giants, while SK Horizon will focus on expanding existing core AI DCs and subsea cable infrastructure. SK Hyper will develop new AI DC projects, aiming for a phased expansion to 5GW by 2029 and 15GW by 2035.
The split is expected to be finalized in the first quarter of next year, pending government approvals and a special shareholders' meeting.
Kim Sung-soo, CEO of SK Broadband, stated, "This governance restructuring is a proactive measure to secure expertise and rapid execution in the AI DC business. As an AI DC infrastructure company, we will continuously scale up SK Horizon to become the leading DC operator in the country."
* This article has been translated by AI.
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