SK Telecom reported a sharp increase in revenue from its AI data center (AIDC) business in the first quarter (Q1) of 2026, as demand for AI infrastructure from global technology companies continues to rise. Growth was supported by a recovery in its wireless business and rapid expansion in AI infrastructure services, particularly its AIDC. Operating profit exceeded KRW 500 billion (US$ 341 million) for the first time since Q1 2025, helped by company-wide productivity measures.
According to a company press release, the South Korean telecom operator’s Q1 consolidated revenue reached KRW 4.39 trillion (US$ 3 million), up 1.5 percent quarter over quarter (QoQ), while operating profit rose to KRW 537.6 billion (US$ 367 million) under K-IFRS standards. Net profit came to KRW 316.4 billion (US$ 216 million). SK Telecom’s AIDC business generated KRW 131.4 billion (US$ 90 million) in revenue during Q1, up 89.3 percent year over year (YoY). The increase was driven by higher utilization rates at data centers including its Gasan facility in Seoul, along with growing demand for GPU-as-a-Service offerings, which provide cloud-based GPU resources to enterprise customers.
Park Jong-seok, CFO, SK Telecom, said, “The first quarter of 2026 was a meaningful period in which we delivered tangible results in line with this year’s goals, strengthening fundamental competitiveness centered on customer value and restoring profitability through a focused AI business, going forward, we will make every effort to restore our earnings by generating sustained results.”
SK Telecom is also expanding further into the enterprise AI market by positioning itself as a domestic full-stack AI provider with capabilities spanning AI infrastructure, models and services. It recently created a new integrated enterprise business organization reporting directly to the CEO as part of that strategy. On a standalone basis, SK Telecom posted revenue of KRW 3.11 trillion (US$ 2.1 million), operating profit of KRW 409.5 billion (US$ 280 million) and net profit of KRW 332.7 billion (US$ 227 million). The company also reinstated its quarterly dividend, declaring KRW 830 (US$ 57) per share for the first quarter.
The accelerating demand for AI infrastructure from global big tech firms is pushing it to expand across the full AIDC value chain, including infrastructure, platforms and services. SK Telecom plans to continue increasing its data center footprint as competition intensifies in the AI infrastructure market.