'AI Core Infrastructure' but... Power Grid Evaluation Holding Back Progress [Data Center Power Regulation]

Government: "AI Top 3 Powers & Digital Transformation"
Increasing IT Demand but Strengthening Related Regulations
New Evaluation System Proposed... Industry Opposes

New construction and expansion of data centers, regarded as core infrastructure in the artificial intelligence (AI) era, have been blocked by government regulations. To prevent the concentration of data centers in the Seoul metropolitan area, the government requires operators with high electricity consumption to undergo a 'Power System Impact Assessment' when building new facilities or expanding existing ones. However, during the pilot implementation period, not a single operator has passed this assessment.

As the country aims to become one of the top three AI powerhouses and promotes digital transformation across all industries, the demand for computing is increasing daily. There are concerns that if the government formally adopts this assessment, it may become difficult to further expand data centers.

According to the government and the data center industry on the 9th, the new data center regulation called the 'Power System Impact Assessment' has been piloted since August under the enforcement of the 'Special Act on the Activation of Distributed Energy.' However, as of early December, no operator has been notified of passing this assessment. [Related article = Evaluation of establishment including employment and finances... "Virtually a prohibition law"]

The Power System Impact Assessment applies to operators who intend to use 10MW or more of electricity for new facilities or those who plan to use a total of 10MW or more through additional expansion. Operators must score at least 70 out of 100 points based on technical (60 points), non-technical (20 points), and policy (20 points) evaluation criteria to be selected for the power supply and demand review.

Kang Seung-hoon, team leader of the Korea Data Center Association, said, "The Power System Impact Assessment has raised the entry barriers for establishing data centers, creating a burden for operators."