South Korea's SK Group said on Monday that it plans to work with Amazon Web Services (AWS) to build South Korea's largest artificial intelligence (AI) data center.

According to industry insiders, the two companies are expected to start the project later this month and hold a groundbreaking ceremony in August.

"Although related work has been ongoing, the specific time and details have not yet been determined," said an SK Group official.

The data center will be located in the Mipo Industrial Park in Ulsan, 305 kilometers southeast of Seoul. Sources said it will accommodate 60,000 graphics processing units (GPUs) and have a power capacity of 100 megawatts, making it the first AI infrastructure of this scale in South Korea.

SK Telecom CEO Yoo Young-sang said at the Mobile World Congress (MWC) 2025 held in Spain in March this year that it will work with global technology partners to build a super-large AI data center equipped with 60,000 GPUs.

SK Telecom plans to invest 3.4 trillion won ($2.49 billion) in AI infrastructure by 2028, a large portion of which is expected to be allocated to data center projects.

AWS is an Amazon subsidiary that provides a pay-as-you-go cloud computing platform and application programming interface (API) to individuals, businesses and governments.