Government to streamline AIDC permitting, invest 200 billion won to localize equipment and technology

[Financial News] The government plans to overhaul regulations hindering the construction of AI Data Centers (AIDCs) and launch a new project worth 200 billion won to foster domestic technologies.
The plan is to reduce the permitting burden on AIDCs, which are rapidly growing as key infrastructure in the age of artificial intelligence (AI), and boost competitiveness by supporting the development and testing of domestic technologies and intensively fostering the AIDC ecosystem.
The Ministry of Science and ICT (MSIT) announced its ‘AI Data Center Ecosystem Support Plan’ at the second Regulatory Rationalization Committee meeting, held on the 23rd at the Blue House guesthouse and chaired by President Lee Jae Myung.
MSIT classified the participants in the AIDC ecosystem into three groups: AIDC developers; companies producing materials, components, equipment and solutions for AIDCs; and the regions where AIDCs are built. It also drew up measures to address the difficulties faced by each group.


To support AIDC developers, the government will swiftly enact subordinate legislation under the Special Act on the Promotion of the AIDC Industry (hereinafter, the AIDC Special Act), which was enacted last June. It will minimize procedures such as preliminary reviews and requests for supplementary information during permit processing, and establish a dedicated channel to address difficulties in the process.
The government will also exclude unmanned facilities such as server rooms and cooling and power equipment from the criteria used to calculate building size, which determine the scale of related facilities that may be installed. This takes into account the fact that AIDCs have relatively few people on site compared with the size of the buildings.
AIDC companies have long cited as the biggest obstacles to AIDC construction the cumbersome application and processing procedures—and the risk of delays—for various permits, including power system impact assessments, building permits, landscape reviews and traffic impact assessments, as well as the application of facility regulations that do not suit the characteristics of AIDCs.
To expand the AIDC ecosystem, the government will launch a new project worth about 200 billion won next year to support domestic companies producing materials, components, equipment and solutions. The amount is based on the government’s budget proposal.
The new project will focus on developing domestic technologies and verifying their reliability. The government will create a large-scale AIDC cluster that includes demonstration facilities for testing domestic technologies as well as commercial data centers. The aim is to give domestic companies a foundation for verifying the reliability of their technologies and competing in global markets.
The industry has argued that, because AIDCs must operate reliably around the clock, companies need an actual commercial operating track record in addition to stronger technological capabilities and access to large-scale demonstration facilities.
The government will also pursue support measures for the regions where AIDCs will be located and their residents. It will designate AIDC special zones in the first half of next year and draw up guidelines to promote mutual growth between operators and local communities.
The ‘regional coexistence plan’ will be a required condition for special zones where operators receive reductions in their contributions. The aim is to increase residents’ acceptance, given that these projects use local resources such as large tracts of land and large-scale power supply facilities.
The government will also address the lack of requirements, standards and procedures for gathering residents’ opinions. In cooperation with local governments, it plans to develop and distribute guidelines for communication between AIDC operators and local residents.
Ryu Jemyoung, MSIT’s Second Vice Minister, said, “We plan to move forward with an advance legislative notice for an enforcement decree setting out specific directions for promoting the AIDC industry and easing regulations by the end of this month.” He added, “We will faithfully fulfill our role in robustly supporting AIDCs, a key foundation for becoming one of the world’s three leading AI powers.”


[email protected] Lee Gu-sun Reporter