South Korea Faces Growing Strain from AI Data Centers

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South Korea's rapid expansion of artificial intelligence data centers is straining the country's electricity and water resources, while regulatory frameworks have yet to catch up, industry officials and analysts say. The Korea Data Center Association expects 76 additional AI data centers to be built nationwide by 2028, with total domestic data center power capacity projected to more than triple from 1,960 megawatts in 2025 to 6,320 megawatts by 2030. However, South Korea lacks national rules requiring facility-level disclosure of electricity and water consumption or clear standards for allocating infrastructure costs, unlike other countries that have moved to institutionalize oversight as data center demand accelerates.

Why it matters

The rapid growth of AI data centers in South Korea is putting a significant strain on the country's electricity and water resources, raising concerns about the sustainability and impact of this expansion. Without proper regulatory frameworks and cost-sharing mechanisms in place, the burden of supporting this infrastructure could fall disproportionately on the general public, rather than being shared equitably among the data center operators and the broader industry.

The details

According to the Korea Data Center Association, 76 additional AI data centers are expected to be built nationwide by 2028. A report by Mordor Intelligence projects total domestic data center power capacity will expand from 1,960 megawatts in 2025 to 6,320 megawatts by 2030 - more than tripling in five years. Despite the surge, South Korea lacks national rules requiring facility-level disclosure of electricity and water consumption or clear standards for allocating infrastructure costs. Existing grid impact assessments focus primarily on whether the power system can accommodate new facilities, without mandating public reporting of resource use or burden-sharing mechanisms.

• By 2028, 76 additional AI data centers are expected to be built nationwide in South Korea.
• Total domestic data center power capacity in South Korea is projected to expand from 1,960 megawatts in 2025 to 6,320 megawatts by 2030.

What’s next

Experts say South Korea may need to adopt clearer disclosure requirements and cost-sharing mechanisms as AI infrastructure expands, similar to the regulatory frameworks implemented in other countries like the European Union and the United States.