SK Telecom headquarters in Seoul (SK Telecom) SK Telecom said Thursday it will spin off SK Broadband’s artificial intelligence data center business into a new company, SK Horizon, as part of a broader push to expand its AI infrastructure operations.The telecom carrier also signed deals with US investment firm KKR and a consortium comprising Korean investment firms IMM Investment and Stonebridge Capital to invest a combined 3.08 trillion won ($2.23 billion) in the new company.Once the investment is completed, SK Telecom will retain a 51 percent stake in SK Horizon and management control. KKR will hold 29 percent, while the IMM Investment-Stonebridge consortium will own 20 percent.Under the restructuring plan, SK Telecom’s wholly owned subsidiary SK Broadband will be divided into the surviving SK Broadband and the newly established SK Horizon. The split ratio, based on the book value of net assets, will be about 0.84 to 0.16.SK Telecom plans to complete the separation by the first quarter of next year, pending regulatory approvals and an extraordinary shareholders meeting.SK Horizon will take over eight operating data centers in Seocho, Ilsan, Bundang, Gasan, Centum, Yangju and Pangyo, as well as AI data centers under construction in Ulsan and Guro. Together, the facilities represent 318 megawatts of infrastructure capacity.The company plans to secure additional data center capacity and gradually expand submarine cable infrastructure needed for SK Telecom’s global AI business. The investment proceeds will be used to fund those efforts, the company said.The spin-off also sharpens the division of roles across SK Telecom’s AI data center business.SK Telecom will oversee overall strategy and partnerships with global tech companies, while SK Horizon will focus on operating existing data centers and expanding supporting infrastructure, including submarine cables.SK Hyper, a dedicated subsidiary for AI data center development established last month, will focus on developing new, large-scale AI data centers. The company aims to secure 5 gigawatts of data center capacity by 2029 and 15 GW by 2035.SK Broadband CEO Kim Seong-soo is expected to serve concurrently as head of SK Horizon, subject to approval by the new company’s board after its establishment.SK Broadband will continue to operate its fixed-line, media and enterprise businesses while expanding AI-based products and services.“This governance restructuring is a proactive measure aimed at strengthening expertise and enabling faster execution in the AIDC business,” Kim said. “As an AIDC infrastructure company, we will continue to scale up SK Horizon and grow it into Korea’s leading data center operator.”