Shares of SK Eternix, the renewable energy division of South Korea’s SK Group, have experienced a remarkable increase of over 114% in the past month. This surge is largely attributed to investor confidence that the expansion of artificial intelligence (AI) infrastructure will significantly boost the demand for renewable energy sources. On Friday, the company’s stock price closed at 80,900 won (US$55.35), marking a 114.6% rise from a month ago. During this period, the benchmark Kospi index saw a decline of 20.9%, and SK hynix, the group’s leading semiconductor firm, experienced a 31.2% drop in its share value.
The momentum in SK Eternix’s stock price picked up speed this week, with a 44.9% increase over the past five trading days. Institutional investors have been active, purchasing a net total of 106.8 billion won in shares, while foreign investors bought a net 79 billion won. Analysts suggest that the strong performance is driven by the anticipation that AI data centers, known for their substantial electricity requirements, will fuel a sustained demand for renewable energy. Furthermore, the South Korean government’s commitment to expanding clean energy capabilities has reinforced investor trust.
In a recent announcement made in June, the South Korean government projected that major industrial projects, such as AI data centers and semiconductor manufacturing clusters, will create an additional electricity demand of 39.7 gigawatts. This projection aligns with the government’s reaffirmed goal to increase the nation’s renewable energy capacity to 100 gigawatts by the year 2030. Such developments are crucial in shaping the energy landscape and enhancing the prospects for companies like SK Eternix.
Investor sentiment is further buoyed by SK Eternix’s upcoming 2 trillion won renewable energy joint venture with global private equity firm KKR. This collaboration is poised to accelerate the company’s growth trajectory in the clean energy sector, presenting significant opportunities for expansion and innovation. As the world increasingly shifts towards sustainable energy solutions, SK Eternix’s strategic initiatives and partnerships are anticipated to play a pivotal role in meeting future energy demands.