South Korea's SK Group signed a series of agreements with Vietnam to build the country's artificial intelligence industry ecosystem and develop core AI infrastructure, the companies announced at the Korea-Vietnam Business Forum in Hanoi on April 23. The deal includes plans for a massive 1,500-megawatt gas-fired power plant specifically designed to support AI data center operations in the country's Nghe An province.
The Partnership Takes Shape
SK Innovation and SK Telecom signed separate memoranda of understanding with the Nghe An Provincial Government and Vietnam's National Innovation Center to jointly explore developing AI data centers and related infrastructure projects in the region. Nghe An, a major economic hub in north-central Vietnam, has emerged as a fast-growing zone for manufacturing, energy, and advanced industries, supported by its port and logistics infrastructure.
"This partnership represents a new model for how AI infrastructure can be developed in emerging markets," said SK Group Chairman Chey Tae-won. "By integrating energy production, data center operations, and AI services, we can create a self-sustaining ecosystem that benefits both countries."
The centerpiece of the energy component is the Quynh Lap LNG power project, a large-scale initiative that includes the 1,500-MW gas-fired combined cycle power plant, an LNG terminal, and a dedicated port. SK Innovation was selected as a co-developer alongside PV Power, a subsidiary of Vietnam's state-owned oil and gas group PVN, and local company NASU. Construction is scheduled to begin in 2027 with completion targeted for 2030.
Korea's AI Full-Stack Goes Global
The Vietnam deal represents the first overseas expansion of SK Group's "Korean-style AI full-stack" model, which links AI model development and validation with the rollout of industry-specific AI services. SK Telecom will contribute its expertise in AI model development, while SK Innovation provides the energy infrastructure backbone needed to power compute-intensive workloads.
"Vietnam is positioning itself as a key node in the global AI infrastructure network," said Nguyen Chi Dung, Vietnam's Minister of Planning and Investment. "This partnership with SK Group will accelerate our ambitions to become a regional hub for AI development and deployment."
The deal also reflects a broader trend of AI infrastructure investment flowing into Southeast Asia, where relatively lower land and labor costs, combined with improving digital infrastructure, are attracting hyperscale data center operators. Vietnam's data center market is expected to grow at a compound annual rate of 15 percent through 2030, driven by both domestic demand and international investment.
Why This Matters
The SK Group-Vietnam partnership illustrates how the AI infrastructure buildout is becoming a geopolitical phenomenon. As the United States, China, and Europe race to secure AI compute capacity, smaller nations are jockeying to become regional AI hubs by offering favorable energy economics and investment climates. Vietnam's strategy of tying AI data center development directly to new power generation capacity addresses one of the industry's most pressing bottlenecks.
The energy dimension is particularly significant. AI data centers are extraordinarily power-hungry, and the decision to co-locate a 1,500-MW power plant with data center facilities reflects the industry's growing recognition that compute and energy infrastructure must be planned together from the outset.
What to Watch
The project timeline stretches several years, with the power plant not expected to come online until 2030. In the near term, investors will be watching for additional details on the data center specifications and capacity, as well as whether other Korean tech conglomerates follow SK Group's lead into Vietnam. The deal could serve as a template for similar AI infrastructure partnerships across Southeast Asia.
“This partnership represents a new model for how AI infrastructure can be developed in emerging markets.”— Chey Tae-won, Chairman, SK Group