South Korea’s largest telecom operator, SK Telecom, is separating its data center and submarine cable businesses into a standalone company called SK Horizon. The new entity has secured a $2.2 billion equity investment from a consortium led by KKR and South Korean investment firms IMM Investment and Stonebridge. The transaction is expected to close in the first quarter of 2027. At launch, SK Horizon will own eight operating data centers with a combined capacity of 318 megawatts and will also take over SK Broadband’s submarine cable business. SK Group has set a target to reach 5 gigawatts of data center capacity by 2029 and 15 gigawatts by 2035. According to CryptoBriefing, the restructuring is aimed at capturing rising demand for AI infrastructure across Asia.