Japan and Korea AI Infrastructure: SoftBank, Sakura, SK — 2026-09-15
SK Group Chairman Chey Tae-won confirmed significant progress on the 900MW expansion of the Ulsan AI Data Center, signaling a major acceleration in Korea's sovereign AI infrastructure push. Meanwhile, SoftBank shares plunged nearly 12% following comments from OpenAI leadership suggesting a slowdown in AI development pace, casting a shadow over its massive $64.6 billion OpenAI investment and broader infrastructure bets. Samsung SDS also broke ground on a new AI data center in Gumi, marking the start of a 19 trillion won investment cycle for the conglomerate.
Japan and Korea AI Infrastructure: SoftBank, Sakura, SK — 2026-09-15
Top developments
SK Group advances 900MW Ulsan AI Data Center expansion
SK Group Chairman Chey Tae-won stated on September 13 that the plan to expand the Ulsan AI Data Center by an additional 900 megawatts is "almost done" and significantly advanced. This expansion sits alongside the currently under-construction 100MW facility, positioning Ulsan as a critical hub for Korea’s AI compute capacity. The confirmation was made during the '2026 Future Energy Forum' in Ulsan, where SK Group executives gathered to inspect the site ahead of its scheduled operation start in the second half of next year.
SoftBank shares drop 12% amid AI slowdown warnings
SoftBank Corp. shares fell approximately 11.6% in Tokyo on September 14 after OpenAI CEO Sam Altman and other industry leaders voiced concerns about the need to slow the pace of AI development due to escalating risks. The market reaction highlights the fragility of investor sentiment toward SoftBank’s $64.6 billion commitment to OpenAI and its broader Stargate data center projects. Despite the volatility, SoftBank recently secured an upsized $11.9 billion loan to support its OpenAI funding obligations.
Samsung SDS breaks ground on Gumi AI Data Center
Samsung SDS officially began construction on its new AI data center in Gumi, North Gyeongsang Province, on September 15. This project represents the tangible start of Samsung’s 19 trillion won ($14 billion) investment pledge to build out AI infrastructure in the region. The facility is expected to support high-performance computing needs for both internal Samsung operations and external enterprise clients, reinforcing the conglomerate's pivot from hardware manufacturing to AI services.
Korean power equipment makers target US grid strain
As US data center growth strains local power grids, South Korean power equipment manufacturers are seeing increased export opportunities. Korean firms now account for 17.3% of US transformer imports, a figure expected to rise as hyperscalers seek reliable supply chains for critical grid components. This trend underscores the symbiotic relationship between AI infrastructure buildouts and heavy industrial exports from Korea.
Local view
Financial News (Korea): The outlet highlights Chairman Chey's direct involvement in the Ulsan site inspection, interpreting his "almost done" comment as a signal that formal announcements regarding partners and specific GPU configurations for the 900MW expansion are imminent. The coverage emphasizes SK's strategy to integrate renewable energy sources into the Ulsan campus to meet sustainability mandates.
The Japan Times: In its analysis of SoftBank's stock plunge, the paper notes that while the $11.9 billion loan provides liquidity, the market is increasingly skeptical of the ROI timeline for ultra-scale AI models. The article contrasts SoftBank's aggressive debt-fueled expansion with more cautious approaches taken by other Japanese telecoms like KDDI, which are focusing on steady-state GPU cloud services.
Context & numbers
- Ulsan Expansion Scale: The additional 900MW capacity at SK's Ulsan site would rival some of the largest dedicated AI campuses globally, adding to the existing 100MW under construction.
- SoftBank Debt: The recent upsized loan brings SoftBank's total financing related to OpenAI to over $11 billion, against a total committed stake of $64.6 billion.
- Samsung Investment: The 19 trillion won (~$14 billion) investment in the Gumi region covers not just the data center but associated R&D facilities and power infrastructure upgrades.
- Transformer Exports: Korean companies now hold a 17.3% share of US transformer imports, driven by the urgent need to upgrade grid capacity for AI data centers in North America.
On the radar
- Formal Announcement for Ulsan 900MW: Chairman Chey indicated that detailed plans for the Ulsan expansion could be released "soon," likely within weeks, potentially revealing partnerships with global chipmakers or cloud providers.
- SoftBank Earnings Guidance: Investors are watching SoftBank’s next earnings call for updated guidance on how the "slowdown" narrative affects their capital expenditure plans for the Stargate project.
- Samsung SDS Stock Reactions: Following the groundbreaking, analysts from LS Securities have maintained a "Buy" rating with a target price of 307,000 won, suggesting continued institutional confidence in Samsung's AI narrative despite broader market volatility.
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