South Korea's AI Data Center Special Act Advances with Power Purchase Agreement Exceptions

The Special Act on the Promotion of the AI Data Center Industry has passed a National Assembly subcommittee, facilitating power purchase agreements (PPAs) for AI data centers. The act designates AI data centers as essential infrastructure, offering simplified licensing, tax support, and assistance with securing utilities. The approval aims to decentralize AI infrastructure outside the capital by allowing long-term power contracts with renewable and LNG generators. However, final passage requires approval from additional committees amid inter-ministerial coordination issues.

Published Mar 26, 2026

The Special Act on the Promotion of the AI Data Center Industry has passed the National Assembly's Science, ICT, Broadcasting and Communications Committee subcommittee. The act allows power purchase agreements (PPAs) with renewable energy and LNG companies for AI data centers, designated as core infrastructure for national competitiveness.

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This move is expected to facilitate decentralized AI infrastructure outside the capital. The bill's passage depends on further approvals from various committees. Industry estimates suggest that a 1GW-class AI data center incurs annual electricity costs of approximately 1 trillion Korean won, highlighting the importance of securing affordable power.