SK Eternix, the renewable energy subsidiary of South Korea’s SK Group, has experienced a remarkable stock surge of over 114% in the past month. This increase is fueled by investor optimism surrounding the anticipated rise in renewable energy demand, driven by the burgeoning expansion of artificial intelligence (AI) infrastructure. As of Friday, SK Eternix shares closed at 80,900 won (approximately US$55.35), marking a 114.6% increase compared to the previous month. In contrast, the broader Kospi index fell by 20.9%, and SK hynix, SK Group’s prominent semiconductor company, saw its shares decline by 31.2%.
The momentum behind SK Eternix’s stock rally intensified over the last week, with a 44.9% climb in the past five trading days alone. Institutional investors have been particularly active, purchasing a net 106.8 billion won worth of shares, complemented by foreign investors who bought a net 79 billion won. Analysts credit this strong market performance to expectations that AI data centers, which consume substantial electricity, will bolster long-term demand for renewable energy solutions. Additionally, the South Korean government’s initiatives to expand clean energy capacity have bolstered investor confidence.
In June, the South Korean government forecasted that major industrial developments, such as AI data centers and semiconductor manufacturing clusters, would necessitate an additional 39.7 gigawatts of electricity. The government also reaffirmed its commitment to expanding South Korea’s renewable energy capacity to 100 gigawatts by 2030. These projections and commitments have provided a favorable backdrop for SK Eternix’s growth prospects and investor sentiment.
Further supporting investor enthusiasm is SK Eternix’s planned renewable energy joint venture with global private equity firm KKR, valued at 2 trillion won. This partnership is anticipated to significantly accelerate SK Eternix’s growth trajectory in the clean energy sector, aligning with rising global demand for sustainable energy solutions. As the company positions itself to capitalize on these trends, the collaboration with KKR is expected to enhance its competitive advantage in the rapidly evolving energy landscape.