SK Horizon AI Hub
SK Telecom Spun Off Subsidiary SK Horizon to Build Asian AI Infrastructure Hub
Anonymous
Key Points
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The split ratio by book value sets SK Broadband at 83.5% and SK Horizon at 16.5% (0.8351323 vs 0.1648677), with post-transaction ownership of roughly 51% for SK Telecom, 29% for KKR, and 20% for IMM/Stonebridge.
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SK Horizon will consolidate eight existing data centers (Seocho, Ilsan, Bundang, Gasan, Centum, Yangju, Pangyo) and AI data centers under construction in Ulsan and Guro, totaling about 318 MW, and will also manage submarine cable networks for global AI operations.
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Investment amounts cited for SK Horizon differ between outlets: some report about 3.08 trillion won in external funding from KKR and the IMM Investment-Stonebridge consortium, while others report 3.8 trillion won.
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SK Hyper, established in July, will focus on developing new AI data center projects within the broader SK Telecom AI DC framework.
SK Telecom is splitting its data center business into a standalone company. The South Korean telecom giant will spin off SK Broadband, creating SK Horizon as a dedicated AI infrastructure firm. Morningstar reports that KKR and the IMM Investment-Stonebridge consortium are investing about 3.08 trillion won, giving SK Telecom roughly 51% ownership after the deal closes.
SK Horizon will manage eight existing data centers and new AI facilities under construction, totaling 318 MW of capacity. The company will also operate submarine cable networks needed for global AI operations. Bastille Post notes the move aims to streamline decision-making and attract large-scale investment to position SK Telecom as an Asian AI infrastructure leader.
A Cleaner Split for Faster AI Growth
SK Telecom's restructuring separates two distinct businesses. Street Insider explains that SK Broadband will continue handling wired, media, and enterprise services after the split. SK Horizon takes over all data center and submarine cable operations. This division lets each company focus on its own strategy without competing for resources or attention.
The company established SK Hyper in July to develop new AI data center projects. Kim Sung-soo, SK Broadband's current CEO, will lead SK Horizon. Benzinga reports the move streamlines decision-making and removes obstacles to rapid expansion in the booming AI infrastructure market.
Eight Data Centers and Growing Network
SK Horizon will immediately control substantial infrastructure. Morningstar lists eight existing facilities: Seocho, Ilsan, Bundang, Gasan, Centum, Yangju, and Pangyo data centers. Two more AI-focused facilities are under construction in Ulsan and Guro. Combined, they total 318 megawatts of power capacity.
Global connectivity matters for AI operations. SK Horizon will manage submarine cable networks that link Asia to the rest of the world. This gives the company control over both computing power and the pipes that move data between continents. AOL highlights this as crucial for serving multinational AI companies.
KKR and Partners Lock in Major Stakes
The investment deal values SK Horizon at a premium to its parent company. KKR will own 29% and the IMM-Stonebridge group will own 20% after putting in roughly 3.08 trillion won. Bastille Post notes SK Telecom retains majority control at 51%, preserving strategic influence while unlocking capital for expansion.
The split happens by book value, not equal shares. SK Broadband represents 83.5% of the split while SK Horizon gets 16.5%. Street Insider reports regulatory approval and deal closure are expected within the next year, allowing SK Telecom to move quickly into the AI infrastructure race while attracting world-class investors.
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