AI data centers boom in South Korea, straining power and water resources

The rapid expansion of artificial intelligence is driving a boom in data center construction across South Korea, but this growth is accompanied by significant environmental concerns, particularly regarding electricity and water usage. AI technologies, especially generative AI, require vast computational power, leading to the proliferation of specialized data centers that act as the backbone for these advanced systems.

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Every time you ask ChatGPT a question, a bottle of water disappears.

These AI data centers are voracious consumers of energy and water. Unlike conventional data centers handling general internet services, AI facilities need to power thousands of high-performance GPUs simultaneously for training and inference. This intensive operation necessitates constant power supply and robust cooling systems, often relying on water. Projections show South Korea's data center electricity consumption soaring from approximately 5 terawatt-hours (TWh) in 2023 to 14.8 TWh by 2027, nearly tripling in four years and approaching one-third of Seoul's annual electricity usage. Water consumption is also substantial, with major IT companies using billions of liters annually for cooling.

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The electricity demand in the United States is projected to increase by more than 420 TWh over the next five years, with data centers accounting for half of the total increase in electricity demand by 2030.

Despite these concerns, South Korea recently passed the "Special Act on the Promotion of AI Data Centers," which aims to streamline the construction process through simplified permits and automatic approvals if agencies fail to act within a set timeframe. However, environmental and climate groups are raising alarms, arguing that the legislation prioritizes development over adequate assessment of the environmental impact, including the strain on power grids. Key issues include the lack of mandatory renewable energy use and the absence of clear principles for local energy sourcing ('Jisan Jiso').

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The data centers operated by the five major domestic IT companies used 2.244 billion liters of water in 2024.

This approach contrasts with global trends. Nations like the Netherlands have restricted large data center construction, Ireland plans to halt new connections in power-constrained areas, and Singapore has imposed strict limits, prioritizing renewable energy. South Korea's current reliance on fossil fuels for over half its electricity generation means increased data center demand directly correlates with higher carbon emissions, undermining national climate goals. Furthermore, the concentration of data centers in the Seoul metropolitan area, which has low electricity self-sufficiency, exacerbates the strain on the national grid and necessitates more long-distance power transmission. Experts advocate for a strategy that combines mandatory renewable energy use with regional decentralization to ensure sustainable coexistence with data centers in the era of climate crisis.

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The concentration of data centers in the Seoul metropolitan area will increase carbon emissions and require more transmission lines. Renewable energy expansion and regional decentralization strategies must go hand in hand.