KT announced on July 23 that it will use approximately 3,500 nationwide telecom stations as edge data centers to support the expansion of physical AI infrastructure. KT CEO Park Yoon-young made the statement after a meeting with Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon and CEOs of South Korea's three major telecom carriers at SK Telecom headquarters. Park explained that physical AI requires networks to reach diverse regional locations, and KT will utilize its existing stations as forward-deployed data centers to connect central AIDC facilities with industrial sites through ultra-low-latency edge infrastructure.
KT Announces 5 Trillion Won AIDC Investment Over Five Years
KT announced this month a plan to invest 5 trillion won in AIDC over the next five years to secure a total capacity of 1 gigawatt (GW). Park stated that KT's role in physical AI focuses on infrastructure rather than robotics, noting that "physical AI can be divided into robots and the infrastructure that delivers information to robots, and KT is on the infrastructure side." The company will deploy AI computing equipment at its approximately 3,500 stations nationwide to build ultra-low-latency edge infrastructure connecting central AIDC facilities with industrial sites.
SK Telecom Targets 15GW AIDC Capacity by 2035
SK Telecom announced last month a plan to build AIDC with a maximum capacity of 15GW. The company did not disclose a specific investment amount. SK Telecom's plan includes launching a 1GW-class AIDC in Ulsan, progressively operating 5GW capacity domestically from 2029, and expanding total capacity to 15GW by 2035.
KT CEO Addresses Media Consolidation and Tax Audit Questions
Park addressed questions about potential consolidation of KT's media subsidiaries, stating "the times are changing and we are considering various options, but nothing has been specifically decided." Regarding the TVING and Wavve merger, he said "we have not received an official request," adding that if a request comes, KT would need to comprehensively consider the content market, domestic industry, and the interests of the company and partners. On satellite sector cooperation, Park stated that KT proposed discussions on public-private collaboration to optimize government projects, clarifying that this was not a specific discussion about global alliance formation but rather a basic cooperation stage. Regarding the National Tax Service audit, Park said KT is "cooperating faithfully with the investigation" but does not know the specific reasons for the audit.
LG U+ Invests 615.6 Billion Won in Paju AIDC
LG U+ CEO Hong Beom-sik declined to provide details on additional AIDC investment plans or participation in the government's "Everyone's AI" service, responding to reporters' questions with "if there is an opportunity, I will share it" before leaving the meeting. LG U+ is investing 615.6 billion won in the Paju AIDC under construction, targeting completion in 2027. The company has set a goal to achieve cumulative AIDC orders of 5 trillion won by 2030, centered on the Paju AIDC expansion.
FAQ
What did KT announce on July 23 regarding physical AI infrastructure?
KT announced it will use approximately 3,500 nationwide telecom stations as edge data centers to support physical AI expansion. CEO Park Yoon-young stated the company will deploy AI computing equipment at these stations to build ultra-low-latency edge infrastructure connecting central AIDC facilities with industrial sites.
How much is KT investing in AIDC and what capacity will it secure?
KT announced this month a plan to invest 5 trillion won in AIDC over the next five years to secure a total capacity of 1 gigawatt (GW).
What is SK Telecom's AIDC capacity target and timeline?
SK Telecom announced last month a plan to build up to 15GW AIDC capacity. The company will start with a 1GW-class AIDC in Ulsan, progressively operate 5GW domestically from 2029, and expand total capacity to 15GW by 2035.
