SK C&C, the IT subsidiary of South Korean conglomerate SK Group, has sold its data center business to sister company SK Broadband.
SK C&C’s 30MW facility in Pangyo, a district outside of Seoul, was sold to SK Broadband for about KRW 500bn ($36m).
SK Broadband now operates nine data centers. Its most recent facility was constructed in Yangju, a city north of Seoul.
The company said that the move would eliminate inefficiencies in overlapping businesses.
SK C&C also announced that it would change its name to SK AX to reflect its focus on integrating agentic AI into workflows.
SK Telecom currently works with SK C&C on Adot Biz, the SK Group’s own agentic AI designed for business applications. It is currently undergoing beta testing and could potentially launch by June.
The subsidiary also has operations in the US.
The conglomerate’s consolidation comes amidst a period of growth in the South Korean data center market. Other South Korean conglomerates like LG, KT, and Samsung have their own data center businesses.
SK Group is one of South Korea’s largest conglomerates. Its telecoms subsidiary, SK Telecom, released its Q1 2025 earnings a day prior to this announcement and is currently embroiled in a data leak controversy.
