SK Telecom will spin off its data center unit into a new entity, SK Horizon, in a deal that secures $2.3 billion in equity funding. The transaction values SK Horizon at KRW 3.08 trillion (approximately $2.3 billion) and will be led by funds managed by KKR alongside the IMM Investment-Stonebridge consortium.
Following the completion of the spin-off, SK Telecom will retain a 51% stake in SK Horizon, while KKR will hold 29% and the IMM consortium 20%. The split will be executed at a ratio of 0.84 for SK Broadband and 0.16 for SK Horizon, based on the book value of net assets. SK Broadband, the existing subsidiary, will continue to operate fixed-line, media, and enterprise businesses.
SK Horizon will focus on AI data center infrastructure, managing eight existing facilities across Seoul and surrounding regions with a combined capacity of 318 MW. The company is also overseeing new projects in Ulsan and Guro, with plans to expand submarine cable infrastructure. SK Telecom’s broader AI infrastructure unit, SK Hyper, aims to achieve 5 GW of data center capacity by 2029 and 15 GW by 2035.
The spin-off is expected to be finalized in the first quarter of 2027, subject to shareholder approval and regulatory clearances. Kim Seong-soo, CEO of SK Broadband, is slated to concurrently lead SK Horizon pending board approval after its establishment.
