With the rapid growth of artificial intelligence (AI), cloud computing, and electric vehicle industries, data center power demand is skyrocketing. The global power supply and demand structure, particularly in the United States, is undergoing a major infrastructure restructuring to adapt to these changes, and Korea is no exception. Distributed energy systems and smart grid technology are attracting attention as alternatives to overcome the limitations of existing centralized power systems.

According to KOTRA's recently published 'Global Grid Power Grid and Power Equipment Industry Trends,' companies are seeking solutions in distributed energy to meet the rapidly increasing demand for data center power.

The International Energy Agency (IEA) projects that global data center electricity consumption will nearly double to 945 TWh by 2030.

In particular, the proliferation of AI technology is accelerating the power consumption of high-performance servers and cooling systems, and in some regions, including the Northeastern United States, winter may become the highest peak time of the year.

According to the North American Electric Reliability Corporation's (NERC) 2024 Long-Term Reliability Assessment, peak electricity demand across North America is expected to increase by approximately 132 GW in summer and 149 GW in winter over the next decade.

This is a shift that reverses the stagnation of the past 20 years, and data centers are at the center of it.

To meet this growing demand, the United States plans to build 28,275 miles of new transmission lines above 100 kV.

This figure represents an increase of more than 50% over the previous year's forecast, and is expected to serve as a key infrastructure for stable power supply in data center-dense areas.

On the other hand, expanding transmission infrastructure faces structural constraints, including land acquisition, environmental permits, and public opposition, and 68 projects spanning approximately 1,230 miles are facing delays.

Accordingly, along with the expansion of regional power grid connectivity, the introduction of distributed energy systems is becoming increasingly important.

Distributed energy is a method of producing and using electricity directly in the area where it is consumed, minimizing transmission losses. It can increase energy self-sufficiency.

The current power system is structured to transmit electricity produced at large-scale power plants throughout the country.

Transmission losses resulting from this process amount to approximately 3-5% of total power generation, resulting in annual economic losses of hundreds of billions of won. Furthermore, the concentration of power plants in specific regions is widening the gap in power supply and demand between the metropolitan area and local regions.

On the other hand, distributed energy systems can minimize transmission losses by producing and using electricity directly in the area where it is consumed.

In particular, self-generation is possible even in houses and buildings by utilizing solar panels, small wind turbines, and fuel cells. This is expected to have the effect of increasing energy self-sufficiency while strengthening the stability of the power grid.

Microgrid systems utilizing solar, wind, fuel cells, and energy storage systems (ESS) also function as demand-side resources that can flexibly control the power demand of data centers.

According to a demonstration experiment by Korea Electric Power Corporation, a direct current (DC)-based distribution system was more than 10% more efficient than the existing method, and HD Hyundai confirmed that the annual electricity cost savings of more than 4% were achieved by applying a low-voltage DC system to a commercial building.

This technology is suitable for high-efficiency power operation, such as data center temperature control systems and server operations.

The proliferation of data centers in the United States is also providing new opportunities for Korean companies.

As of 2024, exports of medium-sized transformers from Korea reached $324 million, a more than fourfold increase over three years, and exports of high-voltage wires and cables also showed steady growth, reaching $334 million.

Demand for advanced power equipment, such as HVDC (high voltage direct current) technology and smart grid solutions, is also increasing.

In particular, the aging of high-voltage cable manufacturing facilities in the United States and the country's strategy to avoid geopolitical risks are further highlighting the competitiveness of Korean products.

Through tailored strategies such as UL certification, securing local logistics hubs, and leveraging the Inflation Reduction Act (IRA), Korean companies can strengthen their position as power solutions providers beyond mere exporters.

Data centers are no longer simply consumers of electricity; they are emerging as key resources that enhance the flexibility and stability of the power grid.

To support this, a new power paradigm is needed, including distributed energy systems, smart grids, and DC distribution technology.

A KOTRA official said, “Korea is based on its technological prowess and proven experience. “We have the capacity to adapt to change and are well-positioned to lead the transition to sustainable energy in the global power market,” he said. “The surge in power demand centered on data centers is both a crisis and an opportunity, and how we respond to it will determine the future landscape of the energy industry.”

Meanwhile, e4ds news will cover power semiconductor technology that responds to AI demands at the ' 2025 e4ds Tech Day ' event held at the ST Center on the first basement floor of the Korea Science and Technology Center on September 9th.

In the keynote speech, Professor Lim Chun-taek of Gwangju Institute of Science and Technology will present on ‘Surge in power demand from AI data centers, semiconductor industrial complexes, electric vehicles, etc. and corresponding electrical and electronic technologies,’ and Infineon’s Managing Director Kim Yong-jin will present on ‘Infineon’s next-generation power semiconductors for energy-efficient power management solutions for AI data centers.’

You can apply for participation on the '2025 e4ds Tech Day' website ( https://www.e4ds.com/conference/techday/ ).