SK Telecom creates AI data-center company with $2.2 billion investment from KKR consortium

SK Telecom is carving out its data center operations into a standalone company called SK Horizon, fueled by KRW 3.08 trillion (roughly $2.2 billion) in equity investment from a consortium led by KKR and South Korean firms IMM Investment and Stonebridge. The deal gives SK Telecom a 51% controlling stake while handing KKR 29% and the IMM-Stonebridge consortium 20%. The new entity will be spun off from SK Broadband, SK Telecom’s subsidiary, and is expected to be finalized in the first quarter of 2027 pending regulatory approvals. What SK Horizon actually looks like SK Horizon isn’t starting from scratch. The company inherits eight operational data centers with an initial capacity of 318 MW, plus additional facilities currently under construction. It also absorbs SK Broadband’s submarine cable business, giving it control over both compute infrastructure and the undersea connectivity that links it to the rest of the world. SK Broadband CEO Kim Seong-soo will pull double duty, managing both SK Broadband and the newly formed SK Horizon. SK Group, the broader conglomerate that SK Telecom belongs to, is targeting 5 GW of data center capacity by 2029 and 15 GW by 2035. For context, 318 MW is...