Highlights
- SK Telecom is spinning off its AI data center (AIDC) business into a new independent entity called SK Horizon.
- The deal brings in roughly $2.2 billion (3.08 trillion KRW) in external funding from KKR and an IMM Investment-Stonebridge Capital consortium.
- KKR will hold a 29% stake and the IMM-Stonebridge consortium 20%, with SK Telecom retaining 51% and management control.
- SK Horizon starts with eight operating South Korean data centers and a targeted 318MW of capacity, with the spin-off expected to close around early 2027.
South Korea’s largest mobile carrier, SK Telecom, is spinning off its AI data center (AIDC) business into a new, independently run entity called SK Horizon, according to a Yonhap News report cited by PANews. The company plans to bring in a total of 3.08 trillion Korean won — roughly $2.2 billion — in external funding for the new unit, with global private equity firm KKR joined by a consortium of IMM Investment and Stonebridge Capital as the anchor outside investors.
Deal Structure and Starting Assets
Under the agreed structure, KKR will take a 29% stake in SK Horizon while the IMM-Stonebridge consortium holds 20%, leaving SK Telecom as the largest shareholder with a 51% stake and continued management control, according to SK Telecom’s own announcement. The new entity — technically carved out of SK Broadband, the SK Telecom subsidiary that has housed the AIDC business — launches with eight data centers already operating across South Korea, including sites in Seocho, Bundang, Gasan, Centum, Yangju and Pangyo, plus two more in Ilsan, and is targeting 318MW of total capacity as it scales. PANews reports the transaction is expected to complete around February 1, 2027, pending regulatory approval and an extraordinary shareholders’ meeting.
Part of a Broader AI Infrastructure Financing Wave
The SK Horizon deal lands amid a wider scramble by telecoms, hyperscalers and private equity to fund AI data center buildouts through structures that keep the heaviest capital spending off a parent company’s core balance sheet — spinning out infrastructure assets and bringing in outside equity or debt investors who specialize in long-duration, capital-intensive bets. KKR in particular has been an active participant in this niche, treating power-hungry AI infrastructure as a yield-generating asset class comparable to toll roads or utilities rather than a speculative tech bet.
Related: Nvidia-Backed Lambda Taps $1 Billion in Private Debt to Fund GPU Buildout
Why It Matters Beyond Korea
For a telecom operator, spinning off AIDC assets into a separately capitalized entity is a way to keep expanding data center capacity — the physical bottleneck constraining AI compute growth globally — without diluting the core telecom business’s balance sheet or credit profile. SK Telecom retaining 51% and management control while still bringing in $2.2 billion of outside capital is a template other regional carriers sitting on data center real estate may look to replicate as global demand for AI compute capacity continues to outstrip supply.
What to Watch Next
The deal still needs to clear South Korean regulatory approval and a shareholder vote before the targeted early-2027 close. Once completed, the next signal to watch is how quickly SK Horizon moves from its current 318MW target toward additional capacity commitments, and whether KKR or the IMM-Stonebridge consortium bring in further capital as the buildout scales.
FAQ
What is SK Horizon?
SK Horizon is a new, independently run AI data center company being spun off from SK Telecom’s AIDC business, currently housed within subsidiary SK Broadband.
How much funding is involved in the SK Horizon deal?
The deal brings in roughly $2.2 billion (3.08 trillion Korean won) in external funding from KKR and an IMM Investment-Stonebridge Capital consortium.
Who owns SK Horizon after the spin-off?
KKR will hold 29%, the IMM-Stonebridge consortium 20%, and SK Telecom will retain 51% along with management control.
When is the SK Horizon spin-off expected to close?
PANews reports a target completion date around February 1, 2027, pending regulatory approval and a shareholder vote.
