SK Group eyes AI data center tied to $2 bln LNG power project in central Vietnam

South Korea’s SK Group is stepping up its presence in Vietnam with plans to develop an AI data center linked to the Quynh Lap LNG-to-power project in Nghe An province, as it pushes its “AI full-stack” strategy overseas.

The plan was unveiled at the Vietnam-Korea Business Forum held in Hanoi, where SK signed memoranda of understanding with Nghe An provincial authorities and the National Innovation Center (NIC).

Under the agreements, SK aims to position itself as a strategic partner in Vietnam’s national AI strategy, focusing on three pillars: digital infrastructure, energy and industrial applications.

A key component is the proposed development of an AI data center in Nghe An, a province seen as an emerging industrial and energy hub in north-central Vietnam.

Two SK subsidiaries, SK Innovation and SK Telecom, will jointly implement the project, with an emphasis on ensuring stable power supply, a critical factor for large-scale data centers.

The AI facility is expected to be integrated with the Quynh Lap LNG power project, in which SK Innovation is involved in developing a complex including a roughly 1.5-gigawatt LNG-fired power plant, an LNG import terminal and a dedicated port.

The model would directly link energy supply with data infrastructure, helping optimize costs and operational stability.

Under the division of roles, SK Innovation will handle energy solutions and power provision, while SK Telecom will oversee development, construction and operation of the data center, as well as global customer acquisition and AI service demand.

Boosting Vietnam’s AI ecosystem

Beyond Nghe An, SK Innovation and SK Telecom also signed cooperation agreements with NIC to support the development of Vietnam’s AI ecosystem.

The collaboration covers data center development, energy infrastructure, and policy recommendations for the AI industry.

SK Telecom is expected to contribute technological expertise and help attract international investment, while SK Innovation will provide energy solutions. NIC will act as a coordinator for domestic partners and support regulatory and policy frameworks.

NIC is a key institution in Vietnam’s AI, semiconductor and startup ecosystem. SK has been a long-term partner, contributing $30 million during the center’s early development phase.

The move marks one of the first times SK has deployed its “AI full-stack” model abroad, a strategy championed by chairman Chey Tae-won to integrate the entire AI value chain, from energy and semiconductors to data centers and AI services.

Previously, SK launched similar projects in South Korea, including a large-scale AI data center in Ulsan in partnership with Amazon Web Services (AWS), expected to be completed by 2027. The group is also exploring cooperation with OpenAI in AI infrastructure.

"SK has capabilities across the full AI value chain, from energy and semiconductors to AI models and applications. We expect to contribute meaningfully to the development of Vietnam’s AI industry,” an SK representative said.

SK is South Korea’s second-largest conglomerate and ranks among the world’s top 100 corporations. In 2024, it had a market capitalization of about $270 billion and revenue of $150 billion.

The group’s operations span four strategic pillars: green energy, semiconductors and advanced materials, information technology and biotechnology.

In LNG, SK Innovation is South Korea’s largest private power producer, operating plants with total capacity of nearly 5 GW and posting stable operating profits exceeding $715 million over the past three years.

The group has also built a closed LNG value chain by importing more than 5 million tons annually, underpinning its cost competitiveness.