The concentration of data centers in the metropolitan area is intensifying. As the concentration of data centers, which are large-scale power-consuming facilities, raises concerns about the burden of power supply and grid infrastructure congestion, the government is rolling up its sleeves to prevent this in advance.

The Ministry of Trade, Industry and Energy, together with Korea Electric Power Corporation and local governments, held a ‘Data Center Regional Distribution Policy Briefing Session’ on the 18th.

This briefing session, attended by officials from the Korea Energy Agency and data center-related companies, was prepared to provide policy guidance to companies that will install and operate data centers in the future on the 'Measures to Alleviate Data Center Concentration in the Metropolitan Area' discussed at a meeting held in November of last year.

The Ministry of Trade, Industry and Energy has come up with a policy to disperse future data centers to regions in order to prevent power shortages and infrastructure congestion due to data centers being concentrated in the metropolitan area. The measures announced include: △Strengthening the evaluation of new large-scale power demand, △Incentives for distributing power demand, and △Linking with local government incentives.

First, we will pursue institutional improvement to strengthen the assessment of the grid ripple effects of new large-scale power demand. Grants the authority to exceptionally suspend or deny electricity supply to large-scale power-consuming data centers if they fail to meet grid reliability and quality standards.

The Ministry of Trade, Industry and Energy also announced that when constructing new data centers in grid-saturated areas such as the metropolitan area, a 'grid impact assessment system' will be introduced to assess grid ripple effects and prepare a plan to minimize negative ripple effects, and to check the progress of implementation.

A policy to disperse power demand concentrated in the metropolitan area was also announced, and a plan is being promoted to provide a 50% discount on facility costs such as cables and switches for data centers located outside the metropolitan area when connected to a 22.9kV distribution network. Incentives such as exemption from reserve power charges are planned for connection to a 154kV transmission network.

KEPCO has established a data center consulting support center and operates dedicated consulting support windows in 15 regional headquarters in conjunction with the power grid information provision system.

Each local government is also making efforts to attract data centers within the region by offering incentives that can be provided. Gangwon Province has announced that it will provide up to 35 billion won in support for large-scale investments of 50 billion won or more, and support human resource supply and housing complexes exclusively for employees in conjunction with local universities.

△Jeollanam-do announced that it will provide incentives such as support of 10-100 billion won in investment subsidies and free provision of land △Gyeongsangbuk-do announced that it will provide support of up to 5 billion won in site facility subsidies △Jeollabuk-do announced that it will provide incentives such as support of up to 30 billion won for investments of 300 billion won and provision of long-term leased land in the Saemangeum Industrial Complex.

Cheon Yeong-gil, director of the Ministry of Trade, Industry and Energy’s Energy Policy Bureau, said, “Data centers are the core of the digital economy, but as their concentration in the metropolitan area intensifies, there are concerns about the burden on power infrastructure and grid congestion.” He added, “To ensure timely construction and stable operation of data centers, I ask for the participation and cooperation of the industry and local governments to disperse their locations to areas with abundant power supply and smooth grid connection.”