Amazon bets only $4 billion on South Korea’s AI Boom – That’s why it could be a game-changer

Amazon Web Services (NASDAQ:AMZN) and SK Group have so far built what could be the most powerful AI infrastructure project in South Korea. The two giants have invested about $51.1 billion in AWS Aloneto’s $4 billion, which has developed a super-large data center in Ulsan. Construction is scheduled to begin in September and by 2029, its startup target is 100MW. But this is just the beginning. SK group chairman Chey Tae-Won told investors that the plan will expand to a GW path, which could transform Ulsan into a global neural center in global AI computing.

Announcements are not just corporate theaters. There has been an effective phenomenon among South Korean President Lee Jae Myung and tech leaders, showing how strategic the move is for the country’s long-term growth. President Lee pointed out that building a next-generation technological infrastructure outside the capital is not just a game of regional development, which may be a template for the country’s high-tech decentralization. Chey, for its own sake, regards AI race as the core pillar of South Korea’s future economic engine. If SK can deliver capabilities, this website can serve as a launch pad for the global AI Trafficnot.

Investors have connected these points. On Friday, the name of the AI ​​link gathered hard. SK Hynix (HXSCL) rose more than 3%, Kakao popped up 11%, and LG CNS soared 9%, lifting Kospi to over 3,000 for the first time in three years. Market responses show that traders are not only excited about another data center, but they bet that the investment could be the catalyst for South Korea’s next AI leap.

This article first appears on Gurufocus.