SK Chairman Calls for Sustainable AI Business Model as Ulsan Data Center Expands
SK Group Chairman Chey Tae-won said AI investment must eventually generate profits and sustain itself, warning of a bubble if returns fall short, as SK and AWS build a large AI data center in Ulsan.
"If humankind has invested this much energy and resources into AI, we need to establish better business models to monetize it," Chey said. "AI needs to generate profits and eventually reach a structure where it can sustain investment on its own."
Chey identified speed, scale and safety as key pillars of SK's AI strategy, while emphasizing the need for viable business models to ensure the long-term sustainability of AI investment. He warned of a potential AI investment bubble if the vast amounts of capital and resources flowing into the sector fail to generate sufficient returns. He underscored the need to create a self-sustaining ecosystem in which AI-related profits can finance further investment.
Chey stressed the importance of achieving economies of scale as AI is increasingly adopted in the manufacturing sector. The vast volume of data required for industrial AI cannot be secured by individual companies or regions alone, he said, and requires a nationwide effort.
Chey said the capacity of SK's AI data center under construction in Ulsan has expanded to nearly 900 megawatts. He added that the group plans to announce further partnerships with global technology companies as the project progresses.
The AI data center, jointly being developed by SK Group and AWS at an estimated cost of 7 trillion won (US$5.2 billion), is scheduled to begin operations in the second half of 2027.