SK Telecom Charges into Vietnam with Revolutionary LNG-Powered AI Data Center Strategy

Korean telecom giant makes bold Southeast Asian power play

SK Telecom just dropped a strategic bomb—Vietnam's about to get a massive LNG-fueled AI data center injection. The move signals Korea's aggressive expansion into emerging tech markets while leveraging cleaner energy solutions.

Why Vietnam's digital infrastructure just got interesting

This isn't your typical data center rollout. We're talking liquefied natural gas meeting artificial intelligence in one of Asia's fastest-growing digital economies. The energy-efficient approach could give SK Telecom serious competitive edge while keeping environmental critics somewhat at bay.

The LNG advantage in computing

Natural gas-powered data centers offer reliable, cost-effective energy—exactly what hungry AI systems need. Vietnam's growing tech ecosystem provides the perfect testing ground for this energy-computing hybrid model.

Because traditional energy costs were getting too predictable for investors' liking

This strategic pivot shows how telecom giants are reinventing themselves as AI infrastructure players. Because when your core business faces saturation, why not become the backbone of Southeast Asia's digital transformation?

TLDRs;

• SK Telecom plans to build an LNG-powered AI data center in Vietnam, expanding its AIDC presence in Asia.
• The move follows its 1 GW data center expansion in Ulsan, South Korea, aimed at boosting AI computing capacity.
• Partnerships with AWS and NVIDIA will power SK Telecom’s Manufacturing AI Cloud and Edge AI developments.
• Energy sourcing, policy coordination, and PPAs remain key challenges as the telecom scales its AI infrastructure globally.

SK Telecom is deepening its push into the Asian artificial intelligence (AI) infrastructure market with plans to build a liquefied natural gas (LNG)-powered AI data center in Vietnam.

The MOVE marks the company’s latest effort to extend its AI Data Center (AIDC) strategy beyond South Korea, following its ambitious 1-gigawatt (GW) expansion project in Ulsan.

The new Vietnam facility, being developed in partnership with SK Innovation, will tap into LNG-based power generation to ensure consistent energy supply for high-performance AI computing. The facility aims to serve as a regional hub for data processing, AI model training, and cloud services tailored for manufacturing, industrial, and telecom clients across Southeast Asia.

As part of this plan, SK Telecom seeks to leverage its growing experience in AI data management and edge computing to meet surging AI-driven demand in the region. The company, listed on the New York Stock Exchange, is also looking to commercialize AIDC solution packages that can be deployed globally, streamlining the design-to-operation process of data centers.

AI Data Centers Fuel the Next Wave of Growth

The Vietnam data center aligns with SK Telecom’s broader goal to become a key player in Asia’s digital infrastructure race. In October 2025, the telecom signed a memorandum of understanding (MoU) to expand its Ulsan data center to a 1 GW-scale facility, underscoring its growing appetite for high-energy AI operations.

That expansion relies on electricity from SK Multi Utility, an SK Group affiliate operating a 300 MW LNG combined heat and power plant in Ulsan, a cost-effective alternative to grid-supplied energy from the Korea Electric Power Corporation (KEPCO). Vietnam’s similar industrial and energy ecosystem made it an attractive choice for replication of this model.

Industry analysts suggest that SK Telecom’s move into Vietnam could position it strategically amid rising demand for localized AI infrastructure, particularly as global cloud providers and telecoms seek to reduce latency and energy costs.

Partnerships Strengthen SK Telecom’s AI Strategy

To achieve these goals, SK Telecom continues to strengthen alliances with global tech leaders. The company’s partnerships with Amazon Web Services (AWS) and NVIDIA play a central role in its infrastructure roadmap.

SK Telecom plans to deploy over 2,000 Nvidia GPUs to support its Manufacturing AI Cloud, designed to accelerate production intelligence across SK Group’s industrial operations. The GPUs will also power advanced technologies such as Edge AI and AI-RAN (AI-powered Radio Access Networks), enabling more efficient and intelligent network performance.

This hardware investment signals the company’s broader ambition to build a vertically integrated AI ecosystem that combines telecom, cloud, and energy solutions under one umbrella, with the Vietnam project serving as a regional testbed for future expansion.

Energy and Policy Challenges Ahead

Despite its momentum, SK Telecom faces significant energy and policy hurdles. Scaling to 1 GW requires power beyond what the current 300 MW LNG plant can deliver. This means the company must navigate South Korea’s complex Power Purchase Agreement (PPA) landscape, a system still evolving amid regulatory oversight and pricing constraints.

Similarly, in Vietnam, the company will need to coordinate with local energy authorities to secure stable LNG supply and environmental approvals. However, Vietnam’s growing appetite for digital transformation and its favorable stance on data infrastructure investments could make it a strong partner in the long term.