LOGO

Implications of the NVIDIA Partnership and Reports of a Semiconductor Plant in Miyagi for Next Generation Data Centers

SK Group’s plans for AI data centers in Japan are taking shape against a backdrop of developments across its semiconductor and computing businesses. In June 2026, Chairman Chey Tae-won outlined plans to open a next-generation data center dedicated to AI in Japan around 2028–2029. The concept combines collaboration with NVIDIA and SK’s own advanced semiconductors to deliver high-performance computing with lower power consumption.

Subsequent developments, including a large-scale cooperation framework with NVIDIA and reports that SK hynix is considering a semiconductor plant in Miyagi Prefecture, offer further context for assessing the group’s potential role in Japan’s AI infrastructure market.

NVIDIA Cooperation Framework Exceeding 500 Billion Dollars

On July 24, 2026, NVIDIA and SK Group announced a comprehensive cooperation framework valued at more than $500 billion, covering the development of AI factories and next-generation AI memory.

SK Telecom plans to use NVIDIA systems to build computing infrastructure in South Korea with capacity of up to 2 GW. Its first AI factory is scheduled to begin operations in 2027. SK hynix also intends to deepen its cooperation with NVIDIA on the supply of next-generation AI memory, including HBM4.

The initiative illustrates an integrated approach to AI infrastructure in which GPUs, memory, data centers, and power supply are developed together as an “AI factory.” SK Group’s large-scale infrastructure program in South Korea provides a useful reference point for evaluating how it might pursue a similar strategy in Japan.

For investors, the distinction between the framework’s stated value and committed capital is critical. The announcement is based on a letter of intent (LOI); the figure of more than $500 billion does not represent a finalized investment commitment.

Reports of a Potential SK hynix Semiconductor Plant in Miyagi

In August 2026, South Korean media reported that SK hynix was considering plans to build a memory semiconductor plant in Miyagi Prefecture. The reports suggested that the project could involve investment of tens of trillions of South Korean won.

SK hynix, however, has said that any location with the necessary infrastructure could be a potential candidate and that no specific site has been selected. Miyagi Prefecture has also stated that it is not currently aware of a concrete plan.

The reports therefore point to the possibility of a semiconductor manufacturing presence in Japan. They do not establish that a plant in Miyagi will proceed.

Power and Infrastructure as Common Requirements

These developments are relevant to the AI data center market because both semiconductor manufacturing plants and AI data centers require substantial power capacity and industrial infrastructure.

In Miyagi Prefecture, Tomiya City has been designated under the data center cluster category of the Ministry of Economy, Trade and Industry’s Green Transformation (GX) Strategic Regions program. The initiative aims to attract a concentration of data centers using decarbonized power and to build an industrial cluster encompassing power and telecommunications infrastructure and related industries.

No official statement currently establishes a direct connection between the reported SK hynix plant and SK Group’s proposed AI data center in Japan. If semiconductor manufacturing, AI computing capacity, and the power and telecommunications infrastructure supporting them were developed within the same region, however, this would be relevant to efforts in Tohoku to coordinate electricity and digital infrastructure, an approach referred to in Japan as “watt-bit collaboration.”

The key developments to monitor are the identification of specific sites for AI factories in Japan, further clarification of the reported Miyagi plant proposal, and progress on the power and telecommunications infrastructure needed to support AI facilities at scale. How SK Group translates its South Korean infrastructure strategy into projects in Japan will help clarify the scope and timing of the opportunity.