Over the past month, SK Eternix, the renewable energy subsidiary of South Korea’s SK Group, has seen its shares soar by over 114%. This remarkable surge in stock value is largely fueled by investor confidence in the burgeoning demand for renewable energy, spurred by the rapid expansion of artificial intelligence (AI) infrastructure. The company’s recent stock price closed at 80,900 won (equivalent to US$55.35) last Friday, reflecting a notable 114.6% increase compared to a month prior. In stark contrast, the benchmark Kospi index experienced a decline of 20.9%, and shares of SK hynix, SK Group’s leading semiconductor entity, fell by 31.2% during the same period.
This week has seen an acceleration of SK Eternix’s stock rally, with a 44.9% rise recorded over the past five trading days. Institutional investors have shown strong interest, acquiring a net 106.8 billion won in shares, while foreign investors have purchased a net 79 billion won. Market analysts are attributing this impressive performance to the anticipated long-term demand for renewable energy, driven by AI data centers that consume significant amounts of electricity. The South Korean government’s commitment to expanding clean energy capacity has further bolstered investor confidence.
In June, the South Korean government projected that major industrial projects, such as AI data centers and semiconductor manufacturing clusters, would result in an additional electricity demand of 39.7 gigawatts. This projection is part of the government’s broader strategy to increase the nation’s renewable energy capacity to 100 gigawatts by 2030, a goal that aligns with the growing global shift towards sustainable energy solutions.
Investor sentiment has also been positively influenced by SK Eternix’s forthcoming renewable energy joint venture with global private equity firm KKR, valued at 2 trillion won. This partnership is expected to significantly accelerate SK Eternix’s growth trajectory within the clean energy sector, providing a robust platform for expansion and innovation in renewable energy technologies.