Table of Contents
- Ulsan emerges as the new heart of Korean AI infrastructure
- Reasons for selecting Ulsan: Strengths of manufacturing base and power infrastructure
- AI highway expands nationwide beyond the metropolitan area
- Chairman Chey Tae-won's and AWS's vision for the future
- Success of a 'new model' led by the private sector with government support
- Conclusion: The AI highway from Ulsan as the cornerstone of South Korea's AI future
- Frequently Asked Questions (FAQ)
Ulsan emerges as the new heart of Korean AI infrastructure
In line with the AI era, South Korea has begun substantial plans to build an AI highway. The first phase of this project will take place at the Ulsan Mipo National Industrial Complex.
SK Telecom and the global cloud company Amazon Web Services (AWS) have agreed to invest about 7 trillion won to build a 103 megawatt (MW) AI data center.
This data center will accommodate 60,000 of the latest GPUs and is planned to expand to gigawatt (GW) capacity to grow as the largest AI hub in the Asia-Pacific region.
This plan is expected to make significant contributions to Korea's technological advancements and economic growth.
Reasons for selecting Ulsan: Strengths of manufacturing base and power infrastructure
Ulsan is not only known for its excellent location and infrastructure. It is recognized as an industrial hub with large manufacturers concentrated in the automotive, shipbuilding, and petrochemical sectors, such as Hyundai Motor, Hyundai Heavy Industries, and SK Innovation. Notably, it has a high demand for AI conversion, creating an optimized environment for AI learning and applications based on manufacturing data. This aspect has become a crucial factor in AWS's choice.
Furthermore, an LNG·LPG combined power plant operated by SK Gas nearby facilitates large-scale power supply. Additionally, eco-friendly cooling systems utilizing LNG cold energy can also be established. With quality power and cost competitiveness, Ulsan is emerging as an attractive alternative to solve the saturation issue in the metropolitan area.
AI highway expands nationwide beyond the metropolitan area
The establishment of the Ulsan data center symbolizes the start of the government's AI highway policy, going beyond simple infrastructure development. President Lee Jae-myung expressed his ambition to create "the Gyeongbu Expressway for the AI era" at the opening ceremony, emphasizing the promotion of private investment through bold tax benefits and regulatory innovations.
This data center will serve as a connecting hub between key locations across the country, including the Gwangju AI data center and the Saemangeum area in North Jeolla Province. Through this effort, it is expected to take a central role in the Korean AI infrastructure network.
Chairman Chey Tae-won's and AWS's vision for the future
Chairman Chey Tae-won of SK Group recently stated about the investment, "This is the first step for Korea to rise as one of the top three countries in the AI field" and presented five proposals to the government.
First, he plans to support startups and small businesses to easily utilize AI infrastructure by expanding the AI one-stop voucher program. Second, the goal is to discover 20,000 AI startups over the next five years.
Third, it aims to create a 5 trillion won market through government-led AI demand generation, moving towards the institutionalization of AI. Fourth, introducing mandatory AI education in elementary and secondary education to nurture 10 million talents. Lastly, the plan is to designate Ulsan as an AI special zone to establish a specialized AI ecosystem centered around manufacturing.
AWS stated that the Ulsan data center will significantly enhance AI learning and inference speeds, thus growing into a data hub with global competitiveness. These efforts are expected to contribute significantly to the development of Korea's AI industry.
Success of a 'new model' led by the private sector with government support
The Ulsan data center project is being evaluated as a successful example where the private sector leads and the government supports after two failures of government-led SPC projects. SK has successfully attracted Amazon through three strategies: data, power, and semiconductors (HBM), and Ulsan has become the center of this significant deal.
This project signifies more than just a technology investment. Ulsan has set a crucial platform for transitioning from an existing manufacturing-centered city to an AI-based advanced industrial city. In addition, collaboration with domestic AI semiconductor startups like FuriosaAI and Rebellion is also anticipated. These changes are expected to positively impact Ulsan's economy.
Conclusion: The AI highway from Ulsan as the cornerstone of South Korea's AI future
The SKT-AWS Ulsan AI data center, established in the Ulsan Mipo industrial complex, signifies more than just a data storage facility. It serves as an advanced computing hub supporting real-time learning, inference, and application of AI technologies, marking a turning point for the industrial city of Ulsan and signaling the beginning of the nationwide expansion of AI infrastructure.
Our nation is now exploring a new direction that seeks to achieve both balanced development among regions and enhancement of global AI competitiveness, moving away from ICT policies centered around the metropolitan area. Ulsan, as the starting point for the AI highway, will become a symbolic hub for global collaboration, and its role is expected to become even more important in the future.
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Frequently Asked Questions (FAQ)
Q. What is the scale and investment amount of the AI data center being constructed in Ulsan Mipo Industrial Complex?
SK Telecom and AWS are investing about 7 trillion won to build a 103MW AI data center.
The AI data center being established in the Ulsan Mipo National Industrial Complex is a 103 megawatt scale capable of housing 60,000 of the latest GPUs. SK Telecom and Amazon Web Services (AWS) are investing approximately 7 trillion won in total to build it, and it plans to expand to gigawatt level to grow as the largest AI hub in the Asia-Pacific region.
Q. What are the main reasons for selecting Ulsan as the site for the AI data center?
Ulsan is a manufacturing hub with excellent power infrastructure and the capability to build eco-friendly cooling systems.
Ulsan is an industrial city concentrated with major manufacturing companies such as Hyundai Motor, Hyundai Heavy Industries, and SK Innovation, and there is high demand for AI conversion. Additionally, being located near an LNG·LPG combined power plant allows for stable and large-scale power supply, and an eco-friendly cooling system utilizing LNG cold energy can also be introduced, creating an optimal environment for operating the data center. The resolution of the metropolitan overpopulation issue is also a significant background.
Q. What is the significance of the Ulsan data center in the context of Korea's AI infrastructure policy?
The Ulsan data center is set to be the starting point of the government's AI highway policy and the central hub of the national AI infrastructure network.
The establishment of the Ulsan data center is seen as the starting point of the national AI highway policy, going beyond simple infrastructure building. President Lee Jae-myung expressed the ambition to create the Gyeongbu Expressway of the AI era at the opening ceremony, stating that he would promote private investment through bold tax benefits and regulatory innovations. It is expected to play a central role in connecting key locations across the country, along with Gwangju and Saemangeum regions.
Q. What are the measures proposed by Chairman Chey Tae-won of SK Group to revitalize the AI industry?
Five measures include nurturing AI startups, expanding the AI voucher program, introducing mandatory AI education, creating government demand, and designating Ulsan as an AI special zone.
Chairman Chey Tae-won announced five proposals for Korea to leap to one of the top three countries in the AI field. First, by expanding the AI one-stop voucher program to support startups and small businesses in utilizing AI infrastructure, second, the goal of nurturing 20,000 AI startups over five years, third, creating a 5 trillion won AI demand driven by the government, fourth, nurturing 10 million talents through mandatory AI education in elementary and middle schools, and finally designating Ulsan as an AI special zone to establish a specialized AI ecosystem centered around manufacturing.
Q. What are the success factors and expected benefits of the Ulsan AI data center project?
It is a new model driven by the private sector with government support, which is crucial for transforming a manufacturing-centered city into an AI advanced industrial city.
The Ulsan project is a successful example of the private sector leading after the failure of government-led SPC projects. SK attracted AWS through strategies focused on data, power, and semiconductors, and it is expected that collaboration with domestic AI startups such as FuriosaAI and Rebellion will expand the AI industrial ecosystem. As a result, Ulsan will transform from an existing manufacturing-centered city into a hub of AI-based advanced industries, positively impacting the regional economy.
