Electricity consumption by the data centers of KakaoBank, an internet-only bank, is rising sharply. As the use of artificial intelligence (AI) grows, demand for data centers to support it is increasing, and the burden of power consumption is expanding along with it.
According to the financial industry Sunday, KakaoBank's data center electricity usage last year was tallied at about 26,970,555 kWh. This accounts for 76% of the bank's total electricity usage of 35,615,000 kWh, and is roughly three times the 8,644,443 kWh used at its offices. Based on Seoul's projected 2025 average monthly household electricity consumption of 247 kWh, that amount could power approximately 9,100 households for a year.
KakaoBank's data center electricity usage has been rising every year. According to the bank's sustainability management report, data center electricity usage grew from 10.43 million kWh in 2021 to 15.26 million kWh in 2022, 19.61 million kWh in 2023, and 23.22 million kWh in 2024. Last year's usage was about 2.6 times higher than in 2021, a fourfold-year increase. Over the same period, office electricity usage rose by only about 1.46 million kWh, meaning most of the increase in power consumption came from data centers.
This is tied to expanded AI investment. KakaoBank currently operates four data centers: its main computing center in Sangam, Seoul; a dedicated AI data center in Sangam, Seoul; a disaster recovery (DR) center in Seongnam, Gyeonggi Province; and a backup center in Gangseo-gu, Busan. Among these, the Sangam AI-only data center, dedicated solely to AI research and development (R&D), opened in February 2024 and is interpreted as having contributed to the increase in electricity usage. "Not only the expansion of AI services, but also the growth in the overall number of customers and service areas, inevitably increases electricity usage," a KakaoBank official said.
The Sangam ICN10 data center, where KakaoBank's dedicated AI data center is located, has a maximum power capacity of 12 megawatts (MW), a small scale compared to tech companies' data centers, which reach maximum power capacities of 50 to 300 MW. However, given that most of the bank's total electricity usage came from data centers, analysts say it demonstrates the power burden accompanying the transition to AI banking. In fact, KakaoBank's total electricity usage last year exceeded its target of about 29.62 million kWh by about 6 million kWh.
Other banks are seeing a similar trend of rising data center power burdens. A considerable number of financial firms do not separately disclose data center electricity usage in their sustainability management reports. However, an official at one commercial bank said, "Among the bank's total electricity usage, including all branches and training centers nationwide, the share used to operate data centers is about 30%, the largest among individual line items."
As electricity usage rises, cost burdens such as electricity bills and facility investment inevitably grow as well. Nevertheless, the banking sector's data center investment is expanding, based on the judgment that they cannot afford to fall behind in the AI competition. KB Kookmin Bank is reviewing the construction of a second data center with expanded power capacity for AI computing, targeting operation in 2030. Woori Bank and Shinhan Bank are also pursuing data center construction in Namyangju, Gyeonggi Province.
Financial holding companies also view data center power burdens as a key management concern. In its 2025 Korea Sustainability Standards Board (KSSB) report, Shinhan Financial Group said, "For data centers and major operational facilities with high electricity usage, we are strengthening resource allocation to improve operational efficiency, including the adoption of high-efficiency equipment, electricity usage management, and procurement of renewable energy."
