AWS confirms cloud partnership with SK Group with 15-year deal

Amazon (NASDAQ:AMZN) Web Services confirmed earlier reporting and unveiled an expanded partnership with South Korea’s SK Group that will see the cloud computing giant build data center infrastructure in South Korea.

As part of the deal, there will be a new AWS AI Zone in the city of Ulsan. The new AI Zone is expected to start in 2027, with SK Group expected to scale capacity in an effort to become a data center hub in the Asia-Pacific region.

It is also expected to generate up to 78,000 direct and indirect jobs as the data center expands, Amazon added.

The announcement is in addition to AWS’s $5.88B planned investment in South Korea by 2027.

“When SK Group’s exceptional technical capabilities combine with AWS’s comprehensive AI cloud services, we’ll empower customers of all sizes, and across all industries here in Korea to build and innovate with safe, secure AI technologies,” said AWS executive Prasad Kalyanaraman in a statement. “This partnership represents our commitment to Korea’s AI future, and I couldn’t be more excited about what we’ll achieve together.”

“We are pleased to combine the technological capabilities of SK Group with AWS, the world’s leading cloud provider, to establish a core infrastructure for a Korean AI ecosystem and create a powerful new engine for the ‘AI highway,’” said Chey Tae-won, Chairman of SK Group. “Moving forward, SK will continue to build an AI data center hub in the Asia-Pacific (APAC) region by leveraging the unique strengths of each affiliate and our global partnerships.”