A special act designed to accelerate the development of artificial intelligence (AI) data center infrastructure passed the National Assembly's plenary session Friday. The legislation is expected to give momentum to AI data center construction centered on non-capital regions. The special act is scheduled to take effect in February next year, following a Cabinet resolution, promulgation, and a nine-month grace period.
The Ministry of Science and ICT (MSIT) said the Special Act on Promotion of the Artificial Intelligence Data Center Industry (AIDC Special Act) was approved at the plenary session the same day.
The core of the special act is shortening the permit and approval period for data centers. The industry has long complained that investment has been delayed because jurisdiction over the various permits required for AIDC construction is scattered across multiple agencies. The special act allows AIDC operators to initiate batch processing of various permits through MSIT after deliberation and resolution by the National AI Strategy Committee. The introduction of a "timeout system," under which permits are deemed processed once a certain period elapses, is also expected to smooth the establishment process.
Regulations will be eased further for AIDCs in non-capital regions. The bill includes a provision exempting power grid impact assessments for cases involving the new construction or expansion of AIDCs below a certain size in non-capital regions, or the conversion of existing data centers into AIDCs.
A special provision for direct liquefied natural gas (LNG) power transactions, which emerged as a point of contention during the bill's passage, was ultimately not included. In relation to this, MSIT and the Ministry of Climate, Energy and Environment plan to sign a memorandum of understanding (MoU) to establish a cooperation framework and measures, agreeing that stable power supply to AIDCs is essential in the wake of the special act's enactment.
"Amid the fierce speed competition surrounding artificial intelligence, the AIDC Special Act has laid the core foundation to accelerate the construction of an AI highway, including expanding corporate AIDC investment and attracting large-scale foreign investment," said Bae Kyung-hoon, Deputy Prime Minister and Minister of Science and ICT. "We will mobilize all our capabilities to establish customized support measures needed in the field through close communication with industry sites, and at the same time actively cooperate with the climate ministry to ensure stable power supply to AIDCs."
