Legislation for artificial intelligence data centers—considered critical infrastructure for the government's goal of becoming a top-three AI power—has stalled amid interministerial conflict. The Ministry of Science and ICT is pushing for bold exceptions including direct power purchase agreements (PPAs), while the Ministry of Climate, Energy and Environment opposes the measures, citing concerns about fairness across industries and power system instability.
According to the National Assembly on the 6th, the Science Ministry recently prepared a consolidated bill combining six AI data center-related proposals submitted to the National Assembly's Science, ICT, Broadcasting and Communications Committee.
The consolidated bill includes provisions allowing the Science Ministry to handle permits currently distributed across building, fire safety, environmental, and power authorities through a single process. It also contains a "timeout system" where applications are deemed approved if no rejection is issued within a set period, along with comprehensive support measures including purchase assistance for graphics processing units (GPUs)—core AI data center components—and workforce development programs.
The power exceptions are what industry anticipates most. Allowing direct PPAs outside the Seoul metropolitan area would enable stable power supply for AI data center operators requiring massive electricity. While the current Distributed Energy Activation Act permits PPAs, application zones are limited and restricted to renewable energy only.
"PPAs will help secure power stability for the 1-gigawatt-plus AI data centers that Amazon and SK plan to build in Korea, while also significantly reducing electricity costs," said Na Yeon-mook, professor of computer engineering at Dankook University.
The bill also includes exemptions from power grid impact assessments when converting existing data centers to AI data centers or significantly expanding current AI data center capacity. AI data center construction typically takes about three years, but power grid impact assessments can take nearly two years—a bottleneck for AI infrastructure expansion.
With both ruling and opposition parties recognizing the need for swift passage, the consolidated bill could be discussed at an upcoming subcommittee meeting before advancing to a full committee vote. The problem lies in interministerial disagreement. The Science Ministry, which oversees AI policy, argues power regulations must be boldly eased to compete in global AI development. The Climate Ministry strongly objects.
The Climate Ministry argues that applying PPA exceptions to a specific industry is unprecedented, and permitting them for AI data centers could raise fairness issues with other sectors. "If we grant exceptions to AI data centers, similar demands will follow from other power-intensive industries like semiconductors and steel," a Climate Ministry official said.
The Climate Ministry also maintains a cautious stance on partial exemptions from power grid impact assessments, citing concerns about destabilizing power systems in regions where AI data centers are located.
Meanwhile, major countries including the United States, Europe, and Japan have already introduced various power exceptions including PPAs for AI data centers. Critics warn that interministerial conflict could cause the government to miss the golden window for its "top-three AI power" strategy. Power trading and various power impact assessment authorities currently fall under the Climate Ministry's jurisdiction, but if the bill passes, some authority and related budgets could transfer to the Science Ministry.
"The United States is focused on securing power supply plans for 50 gigawatts of AI data centers by 2030," said Park Jong-bae, professor of electrical and electronic engineering at Konkuk University. "We must also urgently pursue package support measures, including allowing direct power trading between AI data centers and nearby power plants by actively utilizing regions outside the capital area with excess power capacity."
