Regional AI data center power reviews reveal 10 gigawatts in deployment backlog—significant bottleneck blocking new capacity across multiple geographies.
While the South Korean government has prioritized dispersing AI data centers to non-metropolitan areas, a significant bottleneck has emerged in the power grid impact assessment—the initial regulatory hurdle for building regional data centers. Industry voices are calling for improvements to the assessment system to accelerate regional expansion.
According to Korea Electric Power Corporation (KEPCO) data released August 3rd, the volume for which power supply availability remained unconfirmed totaled 9,583 megawatts (MW) as of end-March 2026. Of the 63,846 MW in cumulative applications, results had been issued for only 54,263 MW. Of those with results, 32,949 MW (60.7%) were deemed available for supply, while 21,314 MW (39.3%) were deemed unavailable.
The power grid impact assessment began trial operation in August 2024 under the Special Act on the Promotion of Distributed Energy, enacted in 2024, which aims to disperse power demand regionally and secure grid stability. Data center operators seeking to consume 10 MW or more of electricity must undergo technical, non-technical, and policy assessments. KEPCO must complete reviews and notify applicants of results within a maximum of 90 days from receiving the assessment report.
The delays are presumed to stem from a surge in non-metropolitan data center applications driven by government policy. The disparity is evident regionally: in metropolitan areas including Seoul, South Seoul, Incheon, and parts of Gyeonggi Province, results had been notified for 33,591 MW of 38,911 MW applied (13.7% unnotified). In non-metropolitan areas from Gangwon to Jeju, results were issued for 20,672 MW of 24,935 MW received (17.1% unnotified).
The disparities are more pronounced in specific regions. North Gyeongsang applied for 1,030 MW but received results for only 420 MW (59% unnotified). Busan and Ulsan had 1,048 MW of 5,997 MW pending. North Chungcheong had 700 MW of 2,800 MW awaiting results. By contrast, Seoul and Incheon showed 0% and approximately 4% unnotified ratios, respectively.
KEPCO maintains that notification rate differences do not indicate regional delays, attributing variations to application timing. "In North Gyeongsang, applications have concentrated recently," a KEPCO official stated. "Differences in notification rates simply reflect when applications were submitted; reviews are not being delayed by region."
The industry disputes this characterization, arguing the assessment has become a project obstacle. The National Assembly Research Service noted in its "2025 State Audit Issue Analysis" that unclear assessment standards and high cost burdens could hinder regional data center dispersal.
Experts stress the need to align assessment timing with project realities. "Data center projects typically begin by confirming power availability, then developing business plans, securing design, attracting investment, and engaging tenant companies," one domestic operator explained. "Currently, applicants must already have substantial business plans in place just to apply for assessment, requiring excessive early-stage investment before business viability is even verified."