SK Eternix, the renewable energy division of South Korea’s SK Group, has seen its shares skyrocket by more than 114% over the past month. This dramatic increase is fueled by investor optimism regarding the burgeoning demand for renewable energy, which is expected to surge due to the rapid growth of artificial intelligence (AI) infrastructure. On Friday, the company’s stock closed at 80,900 won (approximately US$55.35), representing a 114.6% rise from a month prior. During this period, the Kospi index experienced a decline of 20.9%, and shares of SK Group’s leading semiconductor firm, SK hynix, fell by 31.2%.
This week alone, SK Eternix shares soared by 44.9% over five trading days. Institutional investors played a significant role, purchasing a net total of 106.8 billion won in shares, while foreign investors added a net 79 billion won to their portfolios. Analysts credit this robust performance to the anticipated long-term increase in renewable power demand, particularly for AI data centers that require substantial electricity. The South Korean government’s commitment to bolstering clean energy capacity has further buoyed investor sentiment.
The government’s projections in June underscored that significant industrial initiatives, such as AI data centers and semiconductor manufacturing clusters, are expected to create an additional 39.7 gigawatts of electricity demand. Concurrently, the government reaffirmed its objective to expand the nation’s renewable energy capacity to 100 gigawatts by 2030, reinforcing confidence in the sector’s future growth.
Adding to the positive outlook for SK Eternix, the company has announced plans for a substantial renewable energy joint venture with global private equity firm KKR, valued at 2 trillion won. This partnership is anticipated to accelerate SK Eternix’s expansion in the clean energy market, further solidifying its position as a key player in the industry’s evolution.