The government has strengthened cooperation among related ministries to promote the regional dispersion of data centers concentrated in the Seoul metropolitan area.
On the 9th, the Ministry of Trade, Industry and Energy announced that at the 18th Ministerial Meeting on National Issues chaired by Prime Minister Han Deok-su at the Government Complex Seoul, they discussed the "Measures to Alleviate Data Center Concentration in the Seoul Metropolitan Area." Considering the necessity of consultation among related ministries, 15 ministries including the Ministry of Economy and Finance and the Ministry of Science and ICT participated in the meeting.
The Ministry of Science and ICT plans to include measures for regional dispersion of data centers in related plans such as the comprehensive support measures for the cloud industry. Meanwhile, the Ministry of Land, Infrastructure and Transport requested cooperation from related ministries to swiftly support the creation of specialized data center clusters and procedures related to data center construction.
They also discussed institutional improvements to strengthen system evaluations for data centers that consume large amounts of electricity and plans to expand incentives to promote regional dispersion. In particular, the amendment to the Enforcement Decree of the Electricity Business Act is scheduled to be implemented this month through deliberation and resolution at the Cabinet meeting after a vice-ministerial meeting.
The amended enforcement decree allows, as an exception, refusal of electricity supply when it is difficult to maintain power system reliability and electricity quality due to entities intending to use large amounts of electricity of 5MW (megawatts) or more. Additionally, incentives such as facility charge discounts (22.9kV) and standby power fee exemptions (154kV) for data centers located outside the metropolitan area will be provided starting this month through revisions to Korea Electric Power Corporation’s electricity supply terms and conditions.
The Ministry of Trade, Industry and Energy plans to identify data center investment companies wishing to locate in provincial areas and jointly support the resolution of investment difficulties with related ministries. Furthermore, if data center investments are confirmed after the second quarter of this year, they plan to promote the signing of a memorandum of understanding (MOU) among related organizations to facilitate regional dispersion of data centers.
Jang Young-jin, the first vice minister of the Ministry of Trade, Industry and Energy, said, "Data centers are the core of the digital economy, but as concentration in the metropolitan area intensifies, additional construction of power infrastructure such as transmission and distribution networks is burdensome, and there are concerns about system congestion. To ensure timely construction and stable operation of data centers, cooperation from related ministries and local governments is necessary to disperse locations to areas with abundant power supply and smooth system connection."
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