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Nvidia and SK Group launch $500B-plus AI data center and memory pact

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17

Why it matters

Nvidia and South Korea's SK Group announced a more than $500 billion initiative on July 24 to build AI infrastructure and secure advanced memory supply. The deal pairs large-scale data center construction with a long-term memory partnership between Nvidia and SK Hynix, focused on jointly developing high-bandwidth memory for AI training and deployment. SK Telecom, part of the SK Group, will build a 2-gigawatt AI data center powered by Nvidia's Vera Rubin chips and SK Hynix's HBM4 memory, with operations expected to begin in 2027. The companies formalized the collaboration through letters of intent announced in San Francisco.

The specific terms of the partnership remain undisclosed. The exact scope of Nvidia's memory supply commitments and the financial structure of SK Telecom's data center investment have not been detailed publicly.

The announcement signals how AI infrastructure—particularly compute capacity and advanced memory—has become a critical constraint in the race to deploy large language models and next-generation AI systems. For attorneys tracking semiconductor supply chains, foreign investment in U.S. technology, or AI infrastructure development, this deal represents a major commitment to solving two simultaneous bottlenecks through a single industrial partnership. The 2027 timeline also sets a concrete benchmark for monitoring whether the companies meet their stated capacity goals amid ongoing geopolitical and supply-chain pressures.

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