South Korea passes law to accelerate AI data-center construction
South Korea's parliament passed a special law Thursday to speed up artificial intelligence data-center development, removing regulatory bottlenecks that have slowed infrastructure investment.
The Ministry of Science and ICT said the law introduces a one-stop approval system with an automatic permit timeout mechanism, allowing projects to proceed if regulators don't act within a set timeframe. The measure exempts certain AI data centers outside the capital region from power-grid impact assessments and reduces facility-installation requirements.
The government aims to attract large-scale domestic and foreign investment in AI infrastructure as part of its strategy to rank among the world's top three AI powers. The law takes effect in February 2027 after cabinet approval and promulgation, following a nine-month grace period.
What this means for legal teams
Companies planning data-center investments in South Korea should monitor the law's implementation details when they arrive in February 2027. The permit timeout mechanism could shorten approval timelines significantly, but legal teams will need to track specific procedures and deadlines once regulations are finalized.
The exemptions for non-capital-region facilities may shift investment patterns, creating new opportunities outside Seoul. Firms should assess whether their projects qualify for streamlined approval under the new rules.
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