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Carbon cost burden seen as hurdle to attracting big tech tenants to data centres

Big tech companies are using access to renewable energy as a key yardstick when selecting sites for AI data centres, prompting warnings about South Korea’s competitiveness. The Institute for Energy Economics and Financial Analysis said South Korea’s power mix, with a high share of fossil generation, could become a structural weakness in attracting tenants. It said carbon price gaps could add costs for exports to the EU and raise counterparty risk and production costs for semiconductor clusters and AI data centres.