SK Telecom plans major AI data-centre expansion across Southeast Asia

SK Telecom exhibition booth with illuminated logo and digital display at a technology conference, showcasing the South Korean telecom company’s innovation and AI-driven services.
Photo by TelecomTV

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Scaling Asia’s AI infrastructure frontier

SK Telecom, South Korea’s largest mobile operator and technology company, has unveiled plans to build and expand AI-focused data centres across Southeast Asia. The strategic move will see the firm partner with local technology and infrastructure providers to establish next-generation facilities that support regional cloud, AI, and digital innovation.

The initiative marks a turning point in Asia’s data economy, where countries are shifting from being software users to infrastructure builders, reinforcing the region’s position as a driver of global AI scalability.

From telecom to AI infrastructure powerhouse

Founded in 1984, SK Telecom has evolved from a traditional telecommunications provider into a diversified AI and digital infrastructure leader. The company has invested heavily in 5G networks, AI services, and cloud platforms, extending its presence beyond Korea to global markets.

The Southeast Asia expansion follows SK Telecom’s recent partnerships in Vietnam, Indonesia, and Singapore — all of which are rapidly emerging as AI investment hubs. The new data centres will serve as high-performance computing (HPC) environments designed to support AI training, machine learning, and generative model deployment.

According to SK Telecom’s corporate site, the facilities will integrate energy-efficient cooling systems and modular infrastructure, ensuring sustainability and cost-efficiency. Each data centre will be equipped with advanced GPU clusters and localized edge-computing capabilities to minimize latency for regional enterprises.

The company aims to capitalize on the surge in demand for AI processing power, as Southeast Asian nations digitize industries such as manufacturing, healthcare, and logistics. The initiative also complements ASEAN’s Digital Masterplan 2025, which prioritizes infrastructure investment and digital resilience across member economies.

Partnering to build Asia’s AI backbone

SK Telecom’s regional expansion will be carried out through strategic joint ventures with technology partners and government-backed organizations. The company is in advanced discussions with infrastructure providers in Indonesia, Malaysia, and Thailand, focusing on creating localized AI data hubs that comply with national data sovereignty and cloud security laws.

To execute this strategy, SK Telecom will deploy its AI Pyramid Framework, an end-to-end system integrating AI model training, data storage, and application deployment. This framework, already operational in Korea, supports the firm’s in-house language model “A.” and will soon power several enterprise-level AI solutions in Southeast Asia.

A senior executive at SK Telecom noted that the initiative “reflects our commitment to strengthening the foundation of AI infrastructure in Asia. We believe Southeast Asia will become a critical bridge between AI innovation and industrial application.”

The first phase of expansion — expected to launch in 2026 — will focus on Indonesia and Vietnam, two of the region’s fastest-growing digital economies. Later phases will target Singapore, the Philippines, and Thailand, aligning with market readiness and regulatory developments.

According to ASEAN Digital Masterplan 2025, AI infrastructure and data management are central to achieving digital inclusion across the region. SK Telecom’s participation directly supports this vision while enabling regional firms to leverage scalable AI services without relying exclusively on Western hyperscalers.

Asia’s AI growth depends on data infrastructure

SK Telecom’s move highlights a crucial but often overlooked dimension of Asia’s AI race: infrastructure sovereignty. While the region’s startups and software ecosystems have grown rapidly, the availability of localized data centres — especially those optimized for AI workloads — has lagged behind global demand.

By investing in Southeast Asian AI facilities, SK Telecom joins a growing group of Asian firms, including NTT, Huawei, and GDS Holdings, that are transforming Asia into the world’s largest interconnected data zone. This infrastructure-first approach provides regional economies with both technological independence and faster access to AI innovation.

For Southeast Asia, the benefits are twofold. First, localized AI data processing reduces dependency on external cloud providers, improving data security and compliance. Second, these facilities attract high-value AI startups and enterprise clients seeking low-latency, cost-effective compute resources.

This trend reflects a broader policy priority among ASEAN governments, many of which are offering incentives to attract data-centre investment. The combination of growing demand, favourable regulation, and regional connectivity makes Southeast Asia one of the most promising regions for AI infrastructure expansion.

As SK Telecom continues to evolve from a telecom operator into a digital ecosystem architect, its investments signal confidence not just in AI technology, but in the economic transformation of Asia’s digital core.

Building sustainable, connected AI hubs

The next phase of SK Telecom’s expansion will focus on sustainability and scalability. Each data centre will be designed with renewable energy integration and circular cooling technologies, aligning with global ESG benchmarks. The company also plans to explore green AI computing models to reduce the environmental footprint of intensive training workloads.

In addition, SK Telecom will collaborate with regional universities and research centres to develop AI talent pipelines, addressing one of the region’s biggest capacity challenges — skilled workforce development.

Analysts believe that such collaborations will strengthen Asia’s long-term competitiveness in AI, positioning it not only as a production hub but also as a creator of AI infrastructure standards.

By 2030, SK Telecom aims to operate a network of AI-optimized data centres across five Asian markets, serving sectors such as fintech, e-commerce, and smart cities. This ambition aligns with the company’s goal of generating over 25% of total revenue from AI and data services by the end of the decade.

As the global AI economy expands, this Southeast Asian initiative could become a cornerstone for regional digital resilience, ensuring that the next wave of artificial intelligence innovation is built — and powered — within Asia itself.

Asia’s AI future is being built today

SK Telecom’s regional expansion illustrates how Asia’s largest technology companies are investing not just in algorithms but in architecture. By anchoring AI data-centre infrastructure across Southeast Asia, the firm is laying the groundwork for a more self-sufficient and sustainable AI ecosystem.

In a world where digital capability defines economic power, SK Telecom’s move underscores a powerful reality: the future of global AI will depend on Asia’s capacity to build, connect, and scale its own technological foundations.

Read more on business spotlights and innovations features.

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