A special law to spur expanded investment in artificial intelligence data centers (AIDC) has passed the National Assembly.
The Ministry of Science and ICT said on the 7th that the bill to establish the Special Act on the Promotion of the Artificial Intelligence Data Center Industry (hereinafter the AIDC Special Act) was approved at a plenary session of the National Assembly.
As the global contest for AI supremacy intensifies, securing large volumes of graphics processing units (GPUs) and the AIDCs to house them is becoming critical worldwide. The AIDC special bill was first introduced in the National Assembly in May last year.
The AIDC Special Act consists of measures to ease regulations on AIDCs and to systematically foster the AIDC industry and build its foundation.
First, permitting procedures will be streamlined. The industry has said that responsibilities for various permits needed to build AIDCs are scattered across multiple agencies and that lengthy processing times have delayed AIDC investment. In response, after deliberation and resolution by the National AI Strategy Committee, AIDC operators will be able to begin consolidated processing of various permits through a single window (the Ministry of Science and ICT). In particular, a "timeout system," under which permits are deemed processed after a certain period elapses, will be introduced, enabling faster AIDC investment by shortening AIDC-related permitting procedures and timelines.
A measure to encourage AIDC construction outside the greater Seoul area was also included. Under the bill, the government included a provision exempting power system impact assessments for building or expanding AIDCs below a certain size outside the greater Seoul area, or for converting existing data centers into AIDCs. The Ministry of Science and ICT said it expects that selecting locations outside the greater Seoul area will allow the rapid power supply that is key to AIDCs.
Facility installation standards will also be eased. Although AIDCs are buildings centered on servers, they have been required to comply with the same installation standards (based on building area) for elevators, parking lots, and artworks that were designed for other buildings centered on users, creating a need for improvement. Through this special act, those standards will be relaxed by presidential decree, which is expected to reduce facilities that were unnecessarily overinstalled and wasted at AIDCs and ease the burden on the private sector when investing in AIDCs.
A governance system has also been established to systematically foster the AIDC industry and build its foundation. The government created a legal basis to specify AIDC standards by presidential decree and to conduct fact-finding surveys. It also authorized the Minister of the Ministry of Science and ICT to issue guidelines on training specialized personnel, facilitating overseas expansion, regional coexistence, and equipment for measuring electromagnetic effects.
The AIDC Special Act will take effect in Feb. 2027 after approval by the Cabinet Council and promulgation, following a grace period of nine months. The Ministry of Science and ICT and the Ministry of Climate, Energy and Environment said they share the view that a stable power supply to AIDCs is key to securing the golden time for a leap to the global top three in AI, and that they plan to sign a memorandum of understanding (MoU) to establish the necessary cooperation framework and measures.
Bae Kyung-hoon, Deputy Prime Minister and Minister of the Ministry of Science and ICT, said, "We find it very meaningful that the AIDC Special Act, which will lead the swift expansion of our country's AI infrastructure, has passed the National Assembly," and added, "Amid the fierce race for speed surrounding artificial intelligence, the AIDC Special Act has laid a key foundation to accelerate the building of an AI expressway by expanding corporations' AIDC investment and attracting large-scale foreign investment."
He added, "Just as important as enacting the law is properly preparing subordinate statutes so the law can take root successfully," and said, "We will mobilize all capabilities to establish tailored support measures that the field needs through close communication with industry sites, while actively cooperating with the climate ministry to ensure a stable power supply to AIDCs."