Gov't plans to decentralize data centers away from capital

Industry

Published: 27 Oct. 2023, 18:37

Gov't plans to decentralize data centers away from capital

Naver's data center complex situated at Chuncheon, Gangwon. [NAVER]

The Korean government is pushing to locate data centers outside of Seoul reflecting concerns that a massive power outage might occur if the facilities are concentrated around Seoul.

Kakao Enterprise and KT Cloud are some of IT companies that have joined the project.

Eighty-two percent out of the 732 new data centers that will complete construction by 2029 is situated around the capital area, according to the Trade Ministry.

Concern about the heavy clustering of data centers in Seoul led the ministry to push forward with the project to scatter the infrastructure, especially after a battery fire at an SK C&C data center in Pangyo, Gyeonggi, last October that knocked out Kakao servers. The accident prevented people from using major Kakao services for several days, including KakaoTalk, Kakao Taxi and Kakao Bank.

The Trade Ministry held a meeting with officials from six regions on Friday — North and South Chungcheong, Gangwon, South Jeolla, North Gyeongsang and Busan — along with companies such as Kakao Enterprise, SK Broadband and Microsoft to expand the facilities in rural regions outside of the capital at the headquarters of Korea Electric Power Corporation (Kepco) in Yeouido, western Seoul.

The three ongoing projects are: a data center complex being built in Haenam County, South Jeolla with seven investment companies such as LG CNS and Samsung C&T; a complex with three companies including SK ecoplant and KB Asset Management; and another with Kakao Enterprise in South Jeolla.

Seven additional projects being propelled by the ministry are with companies such as KT Cloud, SK Broadband and Microsoft, and with regions in Chungju, North Chungcheong; Dangjin, South Chungcheong; and Wonju, Gangwon.

“The locations were chosen based on evaluation into the specific road maps suggested by the regions and the companies, and the efficiency of the power supply,” the ministry said in a statement.

The government also plans to strictly monitor businesses that run Seoul-based data centers based on a new energy bill which goes into effect next June. The new bill makes it compulsory for all data center enterprises in Seoul to appraise their power quality, hoping to prevent power supplies being concentrated in the capital.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]