South Korea Eases AI Data Center Criteria Ahead of Draft Rules

The South Korean government is relaxing the criteria for what counts as an AI data center (AIDC) well below the level in the original draft enforcement decree, according to industry sources. Subordinate regulations under the AIDC special act are being finalized and could be announced for public comment as early as this week.

What is changing

The special act aims to speed up the build-out of AI data centers as core infrastructure and to strengthen national competitiveness. Facilities built outside the Seoul metropolitan area that meet certain requirements receive exemptions, including a waiver of the power grid impact assessment. The main benefit is a lighter permitting burden and faster access to infrastructure.

The Ministry of Science and ICT originally proposed two tests, and meeting either one would be enough. The first required AI computing equipment, such as AI servers and GPUs, to draw at least 10 MW in total. The second required AI equipment to use at least 300 kW and account for 60% or more of all ICT equipment power.

The government now plans to lower the total power threshold to about 5 MW. For the ratio test, the minimum AI equipment power would drop from 300 kW to 250 kW, equivalent to roughly 280 GPUs, and the share from 60% to 50%. A separate 30% share would apply where neural processing units (NPUs) are installed. In practice, a site with 1 MW of total ICT equipment power would need at least 500 kW of AI equipment, while also meeting the 250 kW minimum.

Why it matters

New builds can reach 10 MW without much difficulty, but existing data centers can rarely be converted entirely to AI use. Industry players had asked for looser rules so that a converted portion of an existing site could qualify, and the revised thresholds appear to respond to that.

One point is still open: the ceiling for the exemption. The science ministry has proposed 100 MW, while the climate, energy and environment ministry has suggested 50 MW. The talks reportedly lean toward 100 MW, given the need to expand AI infrastructure and industry feedback. The science ministry plans to collect industry input early next week before issuing the draft subordinate rules for public comment.