KKR's $2.2 Billion Bet on SK Horizon Is a Preview of Asia's AI Infrastructure Playbook

SK Telecom is spinning off its data centre and subsea cable business into a new company backed by KKR and two Korean investors — a structure APAC allocators should expect to see more of as private capital chases the AI buildout.

TL;DR

• SK Telecom will split its subsidiary SK Broadband into a surviving telecom business and a new company, SK Horizon, dedicated to AI data centres and submarine cables.
• KKR and the IMM Investment-Stonebridge consortium have agreed to invest a combined KRW 3.08 trillion (about US$2.2 billion) for 29% and 20% stakes in SK Horizon respectively; SK Telecom keeps 51% and management control.
• Announced 27 August 2026 and expected to close in the first quarter of 2027, the deal is one of the clearest examples yet of Asian infrastructure capital being carved into dedicated AI data centre vehicles rather than folded into general telecom or private equity holdings.

What exactly is SK Telecom restructuring, and why?

SK Telecom (NYSE: SKM) announced on 27 August 2026 that it will split its wholly owned subsidiary SK Broadband into two entities: a surviving SK Broadband, which keeps the fixed-line, media and enterprise businesses, and a new company called SK Horizon, which takes over the data centre and submarine cable operations. The split ratio is set at roughly 0.84 for the surviving company and 0.16 for the new one, based on net asset book value.

SK Telecom framed the move as a governance restructuring meant to sharpen decision-making and let the AI data centre (AIDC) business raise external capital on its own terms, rather than competing for funding inside a broader telecom balance sheet. Kim Seong-soo, the executive currently running SK Broadband, is expected to lead both companies once the split completes.

How big is the KKR and IMM investment, and what do they get?

Alongside the spin-off, SK Telecom signed a definitive agreement with funds managed by KKR and a consortium of two Korean investment firms, IMM Investment and Stonebridge Capital, for a combined KRW 3.08 trillion (roughly US$2.2 billion) equity investment in SK Horizon. Once the investment completes in full, KKR will hold 29% of SK Horizon and the IMM-Stonebridge consortium will hold 20%, with SK Telecom retaining a controlling 51% stake and management authority.

KKR is investing through its Asia Pacific infrastructure strategy; the firm has more than US$100 billion in infrastructure assets under management globally and over US$70 billion deployed across digital and power assets. IMM Investment, founded in 1999, manages more than US$7.5 billion across venture capital, growth equity and infrastructure, while Stonebridge Capital, founded in 2008, has roughly KRW 3.6 trillion (about US$2.5 billion) in cumulative assets under management.

What is SK Horizon actually buying with the money?

SK Horizon inherits eight operating data centres in South Korea, at Seocho, two sites in Ilsan, Bundang, Gasan, Centum, Yangju and Pangyo, plus additional AI data centres already under construction in Ulsan and Guro. The company's stated target is to expand total capacity to 318 megawatts, and it will also pursue phased expansion of submarine cable infrastructure, which SK Telecom describes as essential to supporting global AI workloads.

The restructuring sits alongside a separate SK Telecom unit, SK Hyper, seeded with roughly US$508 million in July 2026 to develop gigawatt-scale AI data centre projects, targeting 5 gigawatts of capacity by 2029 and 15 gigawatts by 2035. Together, SK Telecom said the two units complete a full-scale AIDC business structure, with SK Telecom setting overall strategy, SK Horizon operating and expanding existing infrastructure, and SK Hyper developing new large-scale sites.

Why this matters for Asia's private capital investors

For allocators watching Asia's alternative asset landscape, the SK Horizon structure is a template worth studying rather than a one-off telecom story. It shows a large regional operator carving a capital-intensive, high-growth infrastructure business out of a legacy balance sheet and inviting global and domestic private capital in as minority partners rather than selling the asset outright. That structure, majority operator control paired with minority stakes for financial sponsors in a vehicle built for one asset class, is becoming a recognisable pattern across the region's AI infrastructure financing, and it gives institutional and family office investors a way to gain exposure to data centre growth without taking outright ownership or operating risk.

It also reinforces a theme APAC allocators have been tracking since mid-2026: private credit and infrastructure capital pivoting hard toward AI data centres as a distinct, investable category, a shift Alt Asset Asia covered in Why Asia's $150B private credit market is pivoting to AI infrastructure and direct family office deals (altassetasia.com/why-asias-150b-private-credit-market-is-pivoting-to-ai-infrastructure-and-direct-family-office-deals/). Korea is now positioning itself alongside Japan and Singapore as a serious AIDC investment destination, competing for the same pool of infrastructure-focused APAC capital that has also been chasing Macquarie's Qube deal (altassetasia.com/macquarie-qube-deal-investor-map/) and Partners Group's evergreen private credit mandate from a single Asia institutional investor (altassetasia.com/partners-group-secures-1-billion-evergreen-mandate-from-a-single-asia-institutional-investor/), even as APAC private markets fundraising overall works through its 2025 slump (altassetasia.com/apac-private-markets-hit-a-decade-low-in-2025-fundraising-asia-regional-funds-are-already-clawing-it-back/).

Frequently Asked Questions

What is SK Horizon?

SK Horizon is a new company being created by splitting South Korean telecom operator SK Telecom's subsidiary SK Broadband into two entities. SK Horizon will hold the data centre and submarine cable businesses, while a surviving SK Broadband keeps the fixed-line, media and enterprise operations.

How much is KKR investing, and what stake will it hold?

KKR and the IMM Investment-Stonebridge consortium have agreed to invest a combined KRW 3.08 trillion (about US$2.2 billion) in SK Horizon. Once complete, KKR will hold a 29% stake and the IMM-Stonebridge consortium will hold 20%, with SK Telecom retaining 51% and management control.

Why are Asia-focused investors watching deals like this?

Deals like SK Horizon show large regional operators separating AI data centre and connectivity infrastructure into standalone vehicles that invite institutional capital as minority partners. For APAC allocators, that creates a growing set of infrastructure-style investment opportunities tied to AI demand, distinct from direct equity exposure to AI companies themselves.

Sources and Method

This article draws on SK Telecom's own press release (SK Telecom Newsroom, 27 August 2026) announcing the SK Broadband split and the KKR/IMM investment in SK Horizon, cross-checked against independent reporting from Data Center Dynamics (Barney Dixon, 27 August 2026). Figures on investment size, ownership stakes, capacity targets and site locations are as stated by SK Telecom and corroborated by Data Center Dynamics' reporting. Alt Asset Asia was not briefed ahead of the announcement and has not independently verified SK Horizon's construction timelines.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Private market and infrastructure investments carry risks including illiquidity and loss of capital, and past performance is not indicative of future results. Always conduct independent research or consult a licensed advisor before making investment decisions.