SK Telecom launched a new AI data center infrastructure company, with an initial $2.2 billion in funding from KKR and the IMM Investment-Stonebridge consortium.

The new company, SK Horizon, will be formed from SK Telecom subsidiary SK Broadband, which will be split into the new company and a surviving SK Broadband company.

SK Horizon will focus on the AI data center sector and expanding its infrastructure to 318-megawatts of capacity.

The company will come out of the split with eight data centers already in operation in South Korea, with sites in Seocho, Bundang, Gasan, Centum, Yangju, and Pangyo, as well as two more in Ilsan. The company said it already has additional AI data centers under construction, and will also look toward phased expansion of its submarine cable infrastructure.

SK Telecom last month launched its SK Hyper dedicated data center unit seeded by $508 million.

SK Telecom noted that under the new structure it will oversee the group’s overall AI data center business, with SK Horizon responsible for expanding infrastructure, and SK Hyper focusing on the development of gigawatt-scale projects. This will provide a “streamlined decision-making structure” enabled by the new business that will allow it to more effectively secure funding for key business areas.

The KKR and the IMM consortium provided $2.2 billion in equity investment to SK Horizon will result in the former holding a 29% stake and the latter a 20% stake in the new company. SK Telecom will maintain the 51% majority share.

The surviving SK Broadband will focus on its fixed-line, media, and enterprise businesses.

Kim Seong-soo will act as CEO of both SK Broadband and SK Horizon, though the appointment is yet to be finalized.

“This governance restructuring is a proactive measure aimed at strengthening expertise and enabling faster execution in the AIDC business,” Seong-soo noted. “As an AIDC infrastructure company, we will continue to scale up SK Horizon and grow it into Korea’s leading data center operator.”