SK Telecom Raises $2.1B for 5 GW AI Data Center Build; Türk Telekom Capex Up 40%

SK Telecom Carves Out Data Centers, Targets 5 GW AI Capacity by 2029

SK Telecom spun SK Broadband's data center and submarine cable assets into a new entity, SK Horizon, and closed KRW 3.08 trillion (approximately $2.1 billion) in outside capital from KKR, IMM Investment, and Stonebridge Capital. The company plans to deploy the funds to build 5 GW of AI data center capacity by 2029, scaling to 15 GW by 2035.

The move puts SK Telecom in direct competition with hyperscale colocation providers and cloud infrastructure operators for GPU cluster hosting and AI training workloads. Domestic rivals KT and LG Uplus have announced their own gigawatt-scale AI data center programs—KT targeting an additional 1 GW by 2031, LG Uplus committing KRW 2 trillion to a 200 MW facility in Paju opening in the first half of 2027. SK Telecom's AI data center revenue grew 92.5% year-over-year in its most recent quarter, driven by high-performance computing demand and expanded colocation.

For enterprise buyers, SK Horizon creates a telco-backed alternative to US hyperscalers for high-density rack capacity in Korea and across Asia-Pacific. The carve-out bundles submarine cable assets with data center infrastructure, enabling end-to-end procurement of intercontinental connectivity and compute from a single counterparty. Buyers negotiating GPU cluster hosting or AI training capacity now have three Korean carriers with explicit capacity roadmaps and disclosed investment figures, improving price discovery and competitive leverage in a market historically dominated by a handful of global operators.

The funding structure introduces new governance dynamics. Enterprises should verify whether service-level agreements, latency guarantees, and uptime commitments under SK Horizon differ from legacy SK Broadband or SK Telecom contracts, and assess how private equity ownership affects long-term infrastructure stability for multi-year colocation commitments.

Türk Telekom Lifts Capex 40% Year-Over-Year, Pushes Intensity to 31.8%

Türk Telekom reported Q2 2026 capital expenditure of TRY 23.1 billion, a 40% increase from TRY 17 billion in the prior-year quarter. First-half 2026 capex climbed 52% to TRY 41.4 billion. Capex intensity reached 31.8% of revenue in Q2, well above the operator's historical range, and the company raised full-year guidance to 34% from a prior 33–34% band.

The surge targets fiber access and core network infrastructure (51% of total capex in 2025), 5G radio access network densification (23%), and IT modernization (15%). Türk Telekom cited supply-chain-driven cost inflation and accelerated project timelines as drivers of the elevated spending. Consolidated revenue rose 9% year-over-year to TRY 72.8 billion, with operational revenue (excluding IFRIC 12 adjustments) up 6% to TRY 66.2 billion.

For buyers of enterprise connectivity in Turkey and surrounding markets, the 40% capex increase signals near-term network capacity expansion but also flags cost pressure that may flow through to commercial pricing. Enterprises negotiating fiber or 5G private network contracts should ask whether Türk Telekom's elevated capex translates to faster deployment timelines for dedicated circuits or whether inflationary headwinds and project delays could extend lead times. The company's willingness to raise capex intensity mid-year suggests urgency to capture market share in high-margin enterprise segments, potentially creating negotiating windows for large fixed-term commitments.

The 51% allocation to fixed network infrastructure indicates prioritization of fiber-to-the-premises and metro fiber builds over mobile radio. Buyers planning multi-site WAN refreshes or data center interconnects in Turkey should validate whether Türk Telekom's fiber footprint expansion covers target locations, and benchmark against alternative fiber providers to test whether the operator's elevated spending creates price competition or simply reflects catch-up investment after years of underinvestment.

What This Means for Enterprise Buyers

SK Telecom's $2.1 billion capital raise and 5 GW roadmap reflect a strategic pivot from connectivity provider to infrastructure-as-a-service operator. Enterprises evaluating AI training or inference workloads in Asia-Pacific now have a credible telco-backed alternative to hyperscaler colocation, with explicit capacity timelines and disclosed investment figures that improve pricing transparency. The bundling of submarine cable and data center assets creates procurement optionality for buyers seeking single-vendor routes between continents, but introduces counterparty risk tied to private equity governance and newco execution.

Türk Telekom's 40% capex surge and 31.8% intensity signal aggressive network expansion, but the company's acknowledgment of cost inflation and elevated guidance raise questions about whether increased spending translates to faster enterprise deployment or reflects supply-chain headwinds. Buyers negotiating fiber or 5G private network contracts in Turkey should validate whether capex acceleration shortens lead times or whether cost pressure will surface in higher quotes for dedicated circuits and custom builds. The 51% weighting toward fixed network infrastructure favors enterprises planning metro fiber or FTTP-dependent architectures, but requires verification that the operator's build plan aligns with buyer site locations and timelines.