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South Korea's AI Data Center Boom Risks Environmental Strain Amidst Deregulation

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

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  • South Korea faces a surge in demand for AI data centers, projected to significantly increase electricity consumption by 2060.
  • While major countries are implementing regulations for efficient power use, South Korea is prioritizing industrial promotion with relaxed regulations.
  • Experts urge the government to establish clear standards and regulations for sustainable data center development, not just rely on corporate efforts.

South Korea is caught in a whirlwind of AI data center development, with projections indicating a dramatic surge in electricity consumption by 2060. One analysis suggests annual data center electricity usage could jump from 5 TWh in 2023 to nearly 135 TWh by 2060, a figure that could represent a quarter of the nation's total power consumption. This rapid expansion, particularly driven by AI accelerators, necessitates robust power and cooling infrastructure, akin to a circulatory and respiratory system for the AI "brain."

People absolutely effing hate data centers.

— Abdul El-SayedQuoted in the article as a slogan used by a Democratic candidate running for U.S. Senate, highlighting public opposition to data centers due to their environmental impact and limited local benefits.

While the global race for AI dominance intensifies, with major tech companies investing billions and electricity demand soaring, other nations are implementing stricter environmental and power usage standards. China, a key competitor in AI, has introduced "green data center" criteria for government procurement, mandating specific efficiency, water usage, and renewable energy ratios. In contrast, South Korea's approach, as outlined in a special law set to take effect in March 2027, focuses on rapid industrial growth and deregulation. The law even allows for exemptions from power grid impact assessments for non-metropolitan AI data centers, a move that raises concerns.

In data centers, heatwaves are no longer a rare tail risk but an annual recurring operational cost item.

— Seoul National University Sustainability Research InstituteFrom an issue report detailing how climate disasters, particularly heatwaves, are increasingly impacting data center operational costs and reliability.

Experts warn that relying solely on corporate initiatives is insufficient for sustainable data center construction. They emphasize the need for government-backed standards and regulations to manage the environmental and energy burdens. The current focus on rapid development, exemplified by government-led "mega-projects," risks accelerating the projected power demand even further, potentially reaching the 2060 levels by 2050. This rapid pace, coupled with insufficient regulatory oversight, highlights a critical tension between South Korea's ambition in the AI sector and its environmental responsibilities.

The AI acceleration scenario figures could accelerate by about 10 years.

— Kim Chul-hyunA senior research fellow at the Korea Energy Economics Institute, commenting on the projected increase in data center electricity usage in South Korea.
DistantNews Editorial

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

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