[Nowhere to Go IDC]⑥ "Data Centers Are the Future Industry"

Data Centers Concentrated in the Capital Region Need to Be Distributed to Provinces
Local Residents' 'NIMBY' Attitude Leaves Data Centers Nowhere to Go
Government Needs to Act as Mediator for Data Center Industry Development

Editor's NoteWhen you look up the word 'NIMBY' in the Britannica dictionary, it is noted as an acronym for 'Not In My BackYard.' It refers to collective action by local residents opposing the establishment of undesirable facilities. Internet Data Centers (hereafter IDC) also struggle to find acceptance due to perceptions that they consume enormous amounts of electricity and generate electromagnetic pollution. While demand surges every year, there is a shortage of places to build data centers. This article examines the current status of data centers and analyzes how to view the NIMBY phenomenon regarding IDCs, which are fundamental infrastructure for future industries.

Inside view of Naver Data Center server room (Photo by Naver)

[Asia Economy Reporter Seungjin Lee] Following the data center fire that halted Kakao's major services simultaneously, the government is moving forward with policies such as decentralizing data centers to local regions. However, even before policy implementation, opposition from local residents and concerns about additional costs for companies are already being raised. Experts urge the government to act as a mediator for the development of the data center industry rather than pushing policies hastily.

70% of Data Center Power Demand Concentrated in the Seoul Metropolitan Area, Urgent Need for Regional Decentralization

According to the Ministry of Trade, Industry and Energy on the 16th, a total of 142 data centers (with power consumption of 4006 GWh) are built and operating nationwide. Currently, 60% of data center locations and 70% of power demand are concentrated in the Seoul Metropolitan Area. The ministry is promoting plans to decentralize data centers concentrated in the metropolitan area to local regions.

Experts agree on the necessity of decentralizing data centers to local areas. Kang Joong-hyup, chairman of the Korea Data Center Association, diagnosed, “From a corporate perspective, there is no need to place data centers in local areas, but it is becoming increasingly difficult to locate them in the metropolitan area.” Data centers are representative high-power-consuming facilities that operate servers and equipment continuously throughout the year in a consistent pattern. Considering the power consumption of 142 data centers alone, it matches the total power usage of the entire Gangnam District in Seoul, making it difficult to build new data centers in the metropolitan area.

The recent data center fire revealed that when facilities are densely concentrated in one place, disaster management can be vulnerable in crisis situations, highlighting the need for decentralization. Professor Yeom Heung-yeol of Soonchunhyang University’s Department of Information Security pointed out, “To prepare for natural disasters, data centers should be located at least 30 km apart,” adding, “The current overconcentration in the metropolitan area is not only fatal in the event of earthquakes or wars but may also cause power supply issues.”

(From left) Kang Jung-hyeop, President of the Korea Data Center Association, Yeom Heung-yeol, Professor of Information Security at Soonchunhyang University, Lee Sung-yeop, Professor at Korea University Graduate School of Technology Management

Local Resident Opposition, Corporate Cost Burden... Government Must Step In

Experts emphasized the importance of the government's role in decentralizing data centers. They advised that, considering past cases of local resident opposition to data centers and the potential difficulties companies may face in securing personnel when operating data centers in local areas, the government should act as a mediator to stimulate investment rather than pushing policies forcefully.

Professor Lee Sung-yeop of Korea University Graduate School of Technology Management stressed, “As the government promotes policies, it must actively engage in persuading local residents.” He said, “As confirmed in the recent fire, IT services like Kakao and Naver have become public services used by all citizens, and the importance of data centers has been recognized. The government needs to explain that data centers are not harmful facilities but essential infrastructure for our daily lives.”

Chairman Kang and Professor Yeom emphasized the need for support measures such as incentives. Kang explained, “If data centers are located outside the metropolitan area, companies are likely to face difficulties in securing necessary personnel. The government should consider this and not just force relocation but also provide related support measures.”

Professor Yeom added, “Although it will be costly, support for undergrounding high-voltage power lines is necessary to alleviate local residents’ concerns. While the number of personnel working directly at data centers is not large, the government should collaborate with companies and local governments to find ways to generate local employment through data centers.”

Emphasis on the importance of the data center industry continued. Chairman Kang said, “Everything in our lives is now connected to IT services, and many people had thought this industry developed naturally without power plants. However, through this fire, people have come to realize that data centers are the power plants of IT services, so I hope this becomes an opportunity to pay more attention and increase investment.”

Professor Yeom stated, “Data centers have long been core infrastructure in our country, but compared to overseas, both corporate investment and government support are insufficient. The government needs to regulate the industry, but more discussions with companies are necessary regarding the depth of such regulations.”