As the government implements the 'Special Act on the Promotion of the Artificial Intelligence Data Center Industry (AIDC Special Act)' and works on subordinate legislation, it has been confirmed that there are no provisions to prevent so-called 'land grabbing' facilities—where permits are obtained but projects are not pursued. With fierce competition to secure prime non-capital area locations, there are calls for urgent measures to manage delayed projects.
According to a draft of the AIDC Special Act enforcement decree prepared by the Ministry of Science and ICT, matters specified in the decree regarding exemptions from power grid impact assessments for non-capital area AIDCs include: △exemption limits △calculation criteria (maximum demand power, i.e., contracted power, for electricity sales agreements) △total contracted power criteria for expansion or conversion. However, the draft does not include a deadline for when actual projects must commence after AIDC recognition.
A participant in the subordinate legislation process stated, “This was not delegated by the higher law,” adding, “The matter was not discussed in this round of work.”
Industry concerns arise that long-delayed projects could fall into a regulatory blind spot. As most data center projects now relocate to non-capital areas, competition intensifies. If companies secure grid capacity but delay projects, legitimate businesses may face harm.
This contradicts existing power grid impact assessment regulations. The current system, under the 'Special Act on the Promotion of Distributed Energy,' requires applicants to request grid connection within one year—a measure to prevent 'land grabbing' where grid capacity is reserved without project execution.
Competition for data center grid capacity is escalating. According to Korea Electric Power Corporation (KEPCO), from the implementation of power grid impact assessments in August 2024 to June 2025, total applications reached 67.4 GW. Data centers accounted for 62.8 GW, or 93%.
While 39.9 GW received 'supply feasible' ratings in the first review, only 7 GW completed final approval. Approximately 33 GW remains between first and final reviews. Many of these projects could proceed under the AIDC Special Act, which exempts them from power grid impact assessments.
An industry insider noted, “Data center projects often stall for extended periods, and operators may change during this time. Without management guidelines, this could block legitimate demand-driven businesses from entering the market.”
Emphasizing historical precedents, they added, “Before stricter power grid assessments were implemented, companies in the capital area preemptively secured sites and power in prime locations, later reselling them at a profit. Similar speculative practices could emerge in non-capital areas near the capital region, necessitating preventive measures.”
