Data center water, power shortages shifted to citizens... Korea's future?

Ireland's struggle with water scarcity, exacerbated by the high demand from data centers, offers a stark warning for South Korea as it embarks on ambitious AI data center development. In Ireland, a recent hosepipe ban affecting over 40% of the population has ignited controversy, as data centers were excluded from the restrictions. This has led to public outcry, questioning why citizens face limitations while massive tech facilities continue their operations unchecked.

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Why are data centers not restricted when residents are monitored through a 'neighbor reporting line' for water usage?

The Irish government itself lacks precise figures on the number of data centers and their resource consumption, a situation mirrored in South Korea. Despite plans to construct 18.4 gigawatts (GW) of AI data centers by 2035, involving major companies like SK, GS, and Naver, critical data on water and electricity needs remains elusive. Regions slated for these developments, such as Ulsan, have already endured severe droughts, with rainfall hitting historic lows and reservoir levels plummeting.

Estimates for water usage vary wildly. While one official suggested an SK 1GW data center might need around 400 tons of water daily, a lawmaker projected a need for up to 26,000 tons for the same capacity, a staggering 65-fold difference. This variability stems from factors like cooling methods, operational rates, and local climate. Crucially, South Korea lacks specific regulations for water use efficiency, reuse, or reduced consumption during droughts, despite advancing plans to ensure stable water supply to these industrial complexes.

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The energy demand of data centers is increasingly becoming a cost-of-living issue in Ireland.

The energy demand is equally concerning. Data centers' share of Ireland's total electricity consumption has surged from 5% in 2015 to 23% last year, with 97% of this demand concentrated in Dublin. This surge has been linked to increased wholesale electricity costs for households, estimated between €572 million and €715 million from 2015 to 2023. Experts warn that the growing energy needs of data centers are forcing greater reliance on imported fossil fuels and driving up consumer costs, turning energy consumption into a significant cost-of-living issue.

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For an SK 1GW data center, it seems around 400 tons per day would be sufficient.

South Korea's situation is further complicated by a lack of clarity on managing electricity demand and infrastructure expansion. The government is even considering a dedicated electricity tariff for AI data centers to reduce their costs. This proactive approach to securing supply, contrasted with the absence of clear demand-reduction strategies or principles for sharing additional infrastructure costs, raises questions about long-term sustainability and fairness.

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If a 1GW data center is built in Ulsan, it could require up to 26,000 tons of water per day.