SK Eternix, the renewable energy subsidiary of South Korea’s SK Group, has experienced a remarkable surge in its stock value, climbing over 114% in the past month. This significant increase is attributed to growing investor confidence that the expansion of artificial intelligence (AI) infrastructure will boost the demand for renewable energy. Closing at 80,900 won (approximately US$55.35) on Friday, the company’s shares have outperformed the broader market, with the benchmark Kospi index down 20.9% and SK hynix, SK Group’s semiconductor division, seeing a 31.2% decline during the same period.
This upward trend has gained momentum recently, with a notable 44.9% rise in the last five trading days alone. Institutional investors have been particularly active, acquiring a net total of 106.8 billion won in shares, while foreign investors have purchased a net 79 billion won. Analysts credit this strong performance to the anticipated rise in demand for renewable energy, driven by AI data centers that require substantial electrical power. Additionally, the South Korean government’s initiatives to expand clean energy capabilities have bolstered investor optimism.
In June, the South Korean government announced that major industrial projects, including AI data centers and semiconductor manufacturing hubs, are expected to generate an additional 39.7 gigawatts of electricity demand. The government has also reiterated its commitment to expanding the country’s renewable energy capacity to 100 gigawatts by 2030, further encouraging investments in the sector.
Investor enthusiasm has also been fueled by SK Eternix’s strategic move to establish a 2 trillion won renewable energy joint venture with the global private equity firm KKR. This partnership is anticipated to accelerate the company’s growth trajectory within the clean energy industry, enhancing its position as a key player in the market.