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South Korea Risks Becoming AI Data Center 'Rental Base' Amid Global Scrutiny

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

Analysis Named sources Context piece
  • Global trends show increasing opposition and regulation of data centers due to high energy and water consumption.
  • Critics argue South Korea is rushing AI data center construction, risking becoming a "rental base" for global tech giants.
  • The government should establish international-standard environmental responsibility and cost-sharing requirements for data centers before proceeding.

As global opposition and regulations against data centers intensify, South Korea faces criticism for pushing ahead with AI data center construction, potentially becoming a mere "rental base" for global tech firms unable to secure sites elsewhere.

Ireland, a major hub for US tech companies, has restricted new data center power connections until 2028 due to their significant strain on the national power grid and increased reliance on fossil fuels. This has led to rising electricity costs for households and public frustration, especially given severe water shortages.

Globally, governments and local authorities are increasingly banning or regulating data centers. China mandates that over 80% of new data center energy must come from renewables, while Australia is developing an "AI standard" requiring data center operators to use renewable energy and contribute to water infrastructure costs.

In contrast, South Korea plans to build 18.4 gigawatts of AI data centers by 2035 under its "mega-project" initiative. The upcoming "Special Act on the Promotion of the AI Data Center Industry" prioritizes rapid development and deregulation. However, AI data centers consume significantly more power and water than standard facilities, disproportionately impacting local communities with shortages and environmental damage while offering minimal job creation. The article urges the government to thoroughly assess energy and water usage and implement international standards for corporate environmental responsibility and cost-sharing.

DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.