Eco Delta City Green Data Center Secures Largest Power Supply in Korea
With the Green Data Center Cluster located in Eco Delta City, Gangseo-gu, Busan, securing the largest power supply in Korea, Busan is increasingly likely to emerge as a hub for the data center industry.
Two project operators that passed the Power System Impact Assessment from the Ministry of Trade, Industry and Energy have initially secured a total of 300MW (megawatts) of power, and an additional 200MW is expected to be supplied, increasing the total to 500MW.
This power scale is six times larger than the current largest Naver Sejong Data Center (80MW) in South Korea, and is expected to have a positive impact on attracting global data centers in the future.
Previously, we posted about how Busan is the optimal location for national AI data centers. It seems that the day when Busan will play an important role in the data center industry is not far off.
Ministry Passes Power System Impact Assessment, Secures 300MW
The Ministry and Busan City announced that two data center project operators located in Eco Delta City have passed the power system impact assessment, securing 180MW and 120MW of power respectively.
The first operator, Busan Eco Delta Green Data Center PFV, secured 180MW, while the second operator, Busan IDC PFV Co., Ltd., secured 120MW.
This is expected to facilitate a smooth power supply for data center operation.
What is the power usage permission process?
When large power-consuming facilities are constructed, the government conducts a power system impact assessment to prevent power supply shortages and system issues.
This approval is considered an important indicator proving that Busan is the optimal location for the data center industry.
Potential to Expand Final Power Supply to 500MW
In addition to the currently secured 300MW, the possibility of securing an additional 200MW is increasing, with the final power supply expected to reach 500MW.
This figure significantly exceeds the hyperscale power supply capacity of over 40MW that global data centers require.
Looking at the power supply of domestic data centers, the Naver Sejong Data Center receives 80MW, and the Pangyo SK C&C Data Center receives 120MW. Notably, if Eco Delta City Green Data Center receives final approval, it will secure 500MW.
As the capacity for large-scale power supply becomes available, Eco Delta City is likely to establish itself as an important hub that decentralizes the data center industry structure centered around the capital region. The development of data centers is expected to positively impact various industries in the future.
Expectations for Attracting Global Data Center Companies
Global companies exploring data center locations in the Asia-Pacific region are increasing their interest in Eco Delta City. This provides an opportunity to decentralize data centers that are concentrated in the capital region and contribute to the country's balanced development.
Busan has a geographically advantageous location and possesses undersea cables and abundant power infrastructure, giving it strong competitiveness.
In this regard, Busan City plans to solicit additional sites for data centers within Eco Delta City, drawing attention from domestic and international companies.
Reasons for Busan Being the Optimal Location for Data Centers
Eco Delta City has a rich power supply infrastructure. Korea Southern Power Co., Ltd. plans to establish a combined heat and power plant, which is expected to enhance the stability of power supply.
The representative of Busan Eco Delta Green Data Center PFV stated, "If designated as a specialized area for distributed energy and additional power is supplied, a stable power supply of up to 1GW (gigawatts) will be secured." This development is expected to improve regional power generation and energy efficiency.
Busan has established itself as an important hub for international undersea cables, providing an optimal environment for global cloud companies to effectively transmit data.
Additionally, as the demand for data centers, which are at the center of the Fourth Industrial Revolution, increases, technologies such as AI, cloud computing, big data, and autonomous driving are advancing. In this changing landscape, Eco Delta City is poised with the best conditions for data centers, indicating a very high potential for future growth.
Economic Effects and Expected Benefits
The establishment of data centers has a significant impact on the overall economy. The production inducement effect amounts to approximately 8.2982 trillion won, while the value-added inducement effect is projected to be 3.4552 trillion won. This is expected to create about 55,449 jobs.
Furthermore, local tax revenue will increase and contribute to the revitalization of the local economy. Such changes are likely to have a positive impact on attracting relevant companies and startups. Busan will have an opportunity to grow as a hub for the AI and cloud industries.
Conclusion: Eco Delta City Emerges as the Largest Data Center Hub in Korea
Busan is emerging as a data center hub. This is due to the securing of up to 500MW of power supply in the country. The increased possibility of attracting global companies due to the Ministry's passing of the power system impact assessment is also a positive sign. With ongoing infrastructure investments on this foundation, the country can gain balanced development and growth momentum for new industries.
However, challenges remain ahead. It is necessary to secure an additional 200MW of power and establish a stable power supply system. Additionally, it is essential to strengthen incentives and policy support to attract domestic and international companies. Expanding cooperation with overseas data centers and developing continuous cluster growth strategies will also be required.
The power supply secured by the Green Data Center in Eco Delta City is expected to mark a significant turning point for South Korea's data industry. It will be worth paying attention to whether Busan can position itself as a data center hub in the Asia-Pacific region beyond the domestic market.
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