SK Telecom is establishing a standalone AI infrastructure business, SK Horizon, and has secured a Won3.08 trillion ($2.23 billion) equity commitment from KKR and the IMM Investment-Stonebridge consortium to fund its data centre expansion across South Korea. The deal, confirmed via a definitive agreement disclosed by Morningstar, forms the centrepiece of a wider restructuring of SK Telecom’s broadband subsidiary, SK Broadband.
Under the plan, SK Broadband will be divided into two separate entities. One will carry on running broadband, media and enterprise operations. The other, SK Horizon, will take ownership of the group’s data centre portfolio and submarine cable assets. SK Telecom said the move would “strengthen its AIDC operational expertise” while enabling it to “expand into a range of AI infrastructure businesses going forward.”
Ownership structure and SK Horizon AI data centre capacity
Once the transaction closes, KKR will hold a 29% stake in SK Horizon and the IMM consortium 20%, with SK Telecom retaining a 51% stake and management control. The new company will be tasked with operating and scaling AI data centre infrastructure to a planned total capacity of 318MW.
SK Horizon’s portfolio will include eight existing facilities located in Seocho, Ilsan, Bundang, Gasan, Centum, Yangju and Pangyo, alongside projects currently under development in Ulsan and Guro. The company will also expand submarine cable assets, which SK Telecom regards as a key part of AI-related digital infrastructure.
SK Telecom said its “streamlined decision-making structure is expected to enable the company to more effectively secure funding for key business areas, including through external investment.” The restructuring is designed to separate strategic oversight from day-to-day operations and the longer-term buildout of new capacity.
Three-tier structure for AI buildout
The reorganisation introduces a clear division of labour across SK Telecom’s AI data centre operations. SK Telecom itself will direct overall strategy and manage relationships with global technology partners. SK Horizon will handle operations and the physical expansion of existing assets. A third unit, SK Hyper, launched in July, will lead development of entirely new, gigawatt-scale projects.
SK Hyper is targeting a phased opening of 5GW of capacity by 2029, with expansion to 15GW by 2035. The ambition is considerable: those targets represent a step-change in scale relative to the 318MW portfolio SK Horizon is starting with.
SK Telecom expects to complete the spin-off and formally establish SK Horizon in the first quarter of 2027, pending shareholder and regulatory approvals. SK Broadband chief executive Kim Seong-soo is expected to head SK Horizon concurrently following board approval.
“This governance restructuring is a proactive measure aimed at strengthening expertise and enabling faster execution in the AIDC business,” Kim said. “As an AIDC infrastructure company, we will continue to scale up SK Horizon and grow it into Korea’s leading data centre operator.”
KKR partner Keith Kim framed the investment in terms of Korea’s broader digital infrastructure trajectory. “SK Horizon brings together an established operating platform, capacity under development and a strong strategic partner,” he said. “Korea’s advanced digital ecosystem and growing demand for AI capacity provide a strong foundation for SK Horizon’s next phase of growth.”
With the definitive agreement in place, the two external investors will together own 49% of SK Horizon once the transaction closes, giving SK Telecom the majority it needs to keep operational control while bringing in capital to fund expansion at a pace it would struggle to sustain alone. The completion timeline stretches into early 2027, and both shareholder consent and regulatory clearance must first be obtained.
