SK Telecom (KRX:017670) plans to build an AI data center in South Korea's Ulsan, which will be scaled up to 15 gigawatts, the telecommunications giant said in a Sunday press release.

The telecommunications giant plans to build more than 2 gigawatts of AI data center capacity in the country's southeastern region and another 1 gigawatt in the southwest, targeting a total domestic capacity of 5 gigawatts from 2029. The company also plans to launch its next-generation AI Factory next year and expand it to gigawatt scale, the release said.

The 15-gigawatt AI data center network is expected to position South Korea as a regional AI infrastructure hub ahead, it said.

Shares of SK Telecom fell more than 2% in recent trade.