Japan and Korea AI Infrastructure: SoftBank, Sakura, SK — 2026-09-14

Top developments

SK Group’s Ulsan AI Data Center Expansion Nears Completion

On September 13, 2026, SK Group Chairman Chey Tae-won stated that the group’s cooperation with Big Tech on AI data centers is advancing rapidly, specifically noting that the additional 900-megawatt (MW) expansion of the Ulsan AI data center is "almost done" and ready for announcement. This development underscores SK’s aggressive push to solidify its position as Korea’s primary AI infrastructure provider, leveraging its industrial base in Ulsan to host gigawatt-scale facilities. The confirmation follows earlier reports of a 7 trillion won investment in the site, which is slated for operation in the second half of 2027.

Reality Check for Korea’s "AI for All" Initiative

A critical analysis published on September 7, 2026, highlighted that South Korea’s ambitious "AI for All" policy, which promises free, unlimited AI access to 51 million citizens, is facing a "wall of reality" regarding compute capacity. While chipmakers like Samsung and SK Hynix are benefiting from the demand signal, the infrastructure gap between the political promise and the available GPU supply threatens to undermine the initiative’s feasibility. This report serves as a cautionary note for investors betting solely on hardware sales without accounting for the massive data center buildout required to sustain such broad public access.

Korean Power Equipment Makers Pivot to US AI Grid Demands

As of September 14, 2026, South Korean manufacturers of power equipment, including transformers and switchgear, are increasingly targeting the US market to capitalize on the strain placed by rapid AI data center growth on American grids. Korea currently holds a 17.3% share of US transformer imports, and domestic firms are positioning themselves as essential suppliers for hyperscalers facing multi-year wait times for grid connections. This shift indicates that while domestic AI infrastructure projects in Korea (like Naver Sejong and SK Ulsan) are progressing, the immediate export opportunity in the US is driving significant revenue streams for these industrial players.

Local view

Local media outlets such as Financial News and Seoul Economic Daily are focusing heavily on the tangible progress of physical infrastructure rather than just investment announcements. Financial News reported on Chairman Chey’s direct involvement in the Ulsan site visit, interpreting it as a signal of SK’s commitment to overcoming logistical hurdles in large-scale construction. Meanwhile, Seoul Economic Daily highlights the strategic pivot of Korean heavy industry towards export-led growth driven by foreign AI demand, suggesting a dual-track economy where domestic AI buildouts (SK/Naver) coexist with a booming export sector for grid components.

Context & numbers

• Ulsan Expansion: The additional capacity being added to SK's Ulsan site is 900 MW, bringing the total scale closer to gigawatt-class operations.
• US Transformer Share: South Korean companies currently account for 17.3% of transformer imports into the United States, a critical bottleneck component for new data centers.
• Total Planned Investment: Broader industry reports indicate that SK Group, GS Group, and Naver plan to invest approximately 550 trillion won in South Korean AI data centers with an initial capacity target of 8.4 GW.

On the radar

• Ulsan Announcement: Chairman Chey indicated an official announcement regarding the Ulsan expansion details is imminent ("soon possible"), which could reveal specific partner names (likely involving NVIDIA or global hyperscalers) and final timelines.
• Stargate Korea Delays: Reports continue to circulate that the OpenAI Stargate project in Korea is stalling due to unresolved power and water supply issues, potentially shifting more domestic AI focus toward SK’s independent capabilities.