"Data center operators now choose sites based on how quickly they can secure power."
Andrew Green, head of the Asia-Pacific (APAC) data center group at Cushman & Wakefield, said this in a written interview with ChosunBiz on the 28th. With more than 30 years of experience in global data center development, he is an expert who has led data center projects by hyperscalers such as Microsoft and Amazon Web Services (AWS) in key regions around the world.
Green said the criteria for data center locations are changing with the spread of artificial intelligence (AI). In the past, network connectivity, customer access, and scalability mattered; now, whether the needed power can be supplied quickly determines investment. He said that, with the Special Act on Activation of Distributed Energy, data center development in Korea, once concentrated in the Seoul metropolitan area, is likely to spread to non-capital regions such as Busan and Ulsan. However, he noted that policies such as nuclear power and industrial electricity rates can change with administrations, creating uncertainty for operators.
◇ Conditions for data centers reshaped by AI… "Speed of securing power is competitiveness"
Hyperscalers review fiber network connectivity, access, and long-term scalability comprehensively when selecting data center sites. Green stressed that securing power is the most important factor among these. The key criterion deciding whether to invest in a data center is how quickly the needed power can be supplied—the so-called "speed-to-power." He said, "Regions where power supply takes more than 18 months have a hard time attracting investment."
Driving this shift is a surge in power demand due to the spread of AI. Just a few years ago, power use per server rack was under 10 kW. It has now surpassed 140 kW and is forecast to exceed 300 kW by 2028.
As power use surges, data center design is changing completely. At or below 30 kW per rack, conventional air-cooling can remove heat, but once it exceeds 140 kW, liquid cooling is essential. Green said this requires a full redesign of overall data center design standards, including floor load, ceiling height, power distribution units (PDUs), and cooling distribution units (CDUs).
◇ After the distributed energy law took effect, Busan and Ulsan emerge as new data center bases
The landscape of Korea's data center market is also changing. According to Cushman & Wakefield, due to power shortages and high land costs in the capital region, data center development is accelerating its shift away from the metropolitan area. As of 2025, non-capital regions expanded to account for about 31% of total development.
The Special Act on Activation of Distributed Energy, implemented in June 2024, became a catalyst accelerating this trend. The law was introduced to supplement the capital-centered power supply structure by allowing electricity produced in a region to be used directly in that region. As a result, non-capital regions, which generally have surplus power and can more easily secure renewable energy, have become even more competitive.
Busan and Ulsan are cited as prime beneficiaries of this shift. In September 2024, Microsoft completed a data center in Busan, and in June 2025, a 260-kilometer subsea fiber-optic cable project between Busan and Fukuoka involving AWS and Microsoft was announced. In the same month, SK Group and AWS decided to build a large AI-dedicated data center in Ulsan.
Green said, "Investment decisions by hyperscalers show a long-term commitment to growth in these regions," adding, "If these areas are well connected to major business districts or operators' service territories, they have strong potential to grow into new data center hubs."
◇ "Demand is steady, but policy predictability must underpin it"
Green gave high marks to the competitiveness of Korea's data center market. He said, "Korea is one of the key markets in Asia-Pacific," adding, "Operating capacity currently reaches 843 MW (megawatts) and is expected to surpass 1 GW (gigawatt) soon." He said new demand continues to emerge, led by hyperscalers, the financial sector, AI, and high-performance computing (HPC).
However, he said consistency in policy is crucial to drive long-term investment expansion by operators. He said, "Korea's energy policy tends to shift direction with changes in administration," adding, "Changes in policies on nuclear power, renewable expansion, and electricity rates can create uncertainty about power costs and the future energy mix for operators planning long-term investment recovery."
He continued, "To sustain this growth, the government should proactively expand power and related infrastructure so that delays or bottlenecks do not occur during new development," adding, "Not only new development but also sustainability requirements must be reflected from the early stages so Korea can meet its carbon-neutral goals."