The government plans to pursue tax support for lease-type AI data centres and ease power regulations to spur investment in AI data centres. It is also considering introducing a fast-track system to simplify permitting procedures.

Vice Prime Minister and Minister of Science and ICT Baek Kyung-hoon (배경훈) gave that response on Oct. 23 to a related question from Democratic Party lawmaker Kim Nam-kuk (김남국) during a comprehensive parliamentary audit by the National Assembly’s Science, ICT, Broadcasting and Communications Committee.

Baek said AI data centres are designated as national strategic technology projects under the Restriction of Special Taxation Act and receive tax benefits, but lease-type AI data centres do not. He said the government will work with fiscal authorities to attract foreign capital.

Baek said ministries have differing views on the criteria for exempting non-capital region AI data centres from power grid impact assessments. The Ministry of Climate, Energy and Environment has set 50 megawatts as an exemption standard, while the Ministry of Science and ICT is reviewing 100 megawatts, presenting different thresholds.

Baek said companies are asking for a higher level than that. He said he will work with the climate ministry so negotiations can be concluded at the level proposed by the Ministry of Science and ICT.

He also agreed on the need to introduce a one-stop fast-track system that integrates permitting procedures and runs them in parallel. Baek said he will review permitting and deregulation broadly while pursuing the successful build-out of AI data centres.

The government selected AI data centres in June as one of three mega-projects and set a goal of building data centres with a capacity of 8.4 gigawatts by 2029 and attracting 550 trillion won in private investment.