– The Special Act includes 1) the introduction of the batch process of permits and approvals as well as a “timeout system,” 2) the exemption of power grid impact assessment in non-capital regions, and 3) the relaxation of facility installation standards.
– The Special Act will take effect in February 2027 following deliberation at a Cabinet meeting.
【Relevant National Task】
20. Establishing an “AI Highway” to Become a Top Three Global AI Powerhouses (AI G3)
The Ministry of Science and ICT (MSIT, Deputy Prime Minister and Minister: Bae Kyung-hoon) announced that the Special Act on the Promotion of the Artificial Intelligence Data Center Industry (“AIDC Special Act”) was passed at the National Assembly plenary session on May 7.
1. Background
Amid intensifying competition to win the global AI race, not only securing large volumes of GPUs but also establishing AI data centers (“AIDC”) that can accommodate them is becoming increasingly important worldwide. In South Korea, there has been a growing consensus on the need to systematically promote AIDCs through a special act to accelerate the establishment of AIDCs, attract investment, and achieve the country’s goal of becoming one of the top three global AI powerhouses.
After the AIDC Special Act was first proposed in May 2025, the 22nd National Assembly then integrated six bills* following a bipartisan agreement. The bill was subsequently passed at the plenary session on May 7, 2026, following review by the Science, ICT, Broadcasting, and Communications Committee (SIBCC) on April 14 and the Legislation and Judiciary Committee (LJC) on May 6.
* Democratic Party: Chung Dong-young, Han Min-soo, Hwang Jeong-ah, and Cho In-cheol; People Power Party: Kim Jang-gyeom; Rebuilding Korea Party: Lee Hae-min
2. Details of the AIDC Special Act
The AIDC Special Act consists of two parts: promoting and laying the foundation for
the AIDC industry and easing regulations for the establishment of AIDCs. The details are as follows.
1) Preparing Frameworks to Systematically Promote and Lay the Foundation for the AIDC Industry
The AIDC Special Act establishes legal grounds for 1) specifying AIDC standards under a presidential decree (Article 2) and conducting surveys on the status of AIDCs (Article 7), while 2) enabling the Prime Minister and Minister of MSIT to cultivate experts (Article 14), promote global market entry (Article 15), prepare measures to foster cooperation and mutual prosperity between AIDC and local communities (Article 16), and issue guidelines related to equipment for measuring electromagnetic impact (Article 17).
2) Easing Regulations for the Swift Establishment of AIDCs and Attraction of Investment
2.1 Batch Process of Permits and Approvals (Article 18)
The industry has raised concerns that investment in AIDCs is being delayed because permits and approvals required for AIDC construction are handled by multiple agencies and the approval process is lengthy. In response, the Special Act allows AIDC operators to initiate batch processing of various permits and approvals through a single window at MSIT, following deliberation and resolution by the Presidential Council on National Artificial Intelligence Strategy (NAIS). The Special Act also introduces a “timeout system,” under which permits and approvals are deemed granted upon the expiration of a set period. These measures are expected to streamline permit procedures and reduce processing time, ultimately accelerating investment in AIDCs.
2.2 Exemption of Power Grid Impact Assessment in Non-capital Regions (Article 19)
As part of efforts for a balanced national growth, the current government has been implementing a number of policies to attract AIDCs to non-capital regions. The AIDC Special Act includes a provision exempting power grid impact assessments* for the new construction or expansion of AIDCs below a certain size in non-capital regions, or the conversion of existing data centers into AIDCs. This is expected to enable the prompt supply of electricity, which is essential for AIDC, when non-capital regions are selected as AIDC sites.
* According to the Special Act on Activation of Distributed Energy, the assessment is required for an operator who needs to use at least 10 MW of electricity.
2.3 Relaxation of facility installation standards (Article 21)
Although AIDCs are server-oriented facilities, they have been subject to the same installation standards for elevators, parking lots, and artworks that were designed for occupant-oriented buildings. The AIDC Special Act now allows these standards to be relaxed through a presidential decree, which is expected to reduce unnecessary installations in AIDCs and ease the burden on the private sector investing in AIDCs.
3. Plans
The AIDC Special Act is scheduled to take effect in February 2027 following deliberation and promulgation at a Cabinet meeting and a nine-month grace period. The government plans to swiftly pursue follow-up measures such as preparing subordinate legislation to ensure the smooth implementation of the Special Act. It also plans to establish standards and procedures for regulatory relaxation related to AIDCs through sufficient consultations with relevant ministries and various stakeholders.
Meanwhile, MSIT and the Ministry of Climate, Energy, and Environment (MCEE) announced that, taking the opportunity of the establishment of the AIDC Special Act, they plan to sign an MOU to build collaborative frameworks and develop necessary measures based on the shared understanding that a stable power supply for AIDCs is the key to securing the golden window of opportunity for South Korea to become one of the top three global AI powerhouses.
“The passage of the AIDC Special Act at the National Assembly is highly meaningful as it will enable Korea to accelerate the expansion of AI infrastructure. I appreciate the efforts of the SIBCC members in passing the bill. In particular, I would like to express my deep gratitude to the lawmakers who proposed the bill: Mr. Chung Dong-young, Mr. Cho In-cheol, Mr. Han Min-soo, Ms. Hwang Jeong-ah, Mr. Kim Jang-gyeom and Ms. Lee Hae-min*” said Deputy Prime Minister and Minister Bae. He also emphasized “Amid the fierce competition surrounding AI, the AIDC Special Act lays the key foundation to accelerate the building of an AI Highway by encouraging expanded AIDC investment from domestic private sector while attracting large-scale foreign investment.”
* The names of the lawmakers are listed in order of the ruling party followed by opposition parties. Within each party, the names are listed in Korean alphabetical order.
“Preparing subordinate legislation to ensure the successful implementation of the law is just as important as enacting the law itself,” Deputy Prime Minister and Minister Bae said, “We will closely communicate with the industry and mobilize all available capabilities to develop tailored support measures needed in the field. At the same time, we will actively cooperate with MCEE to ensure a stable power supply for AIDCs.”