A special act on AI data centres (AIDC) passed a full meeting of the National Assembly Science, ICT, Broadcasting and Communications Committee on April 14. It must be finalised through review by the Legislation and Judiciary Committee and approval at a plenary session.

The bill is a committee alternative that integrates 6 separate proposals introduced by lawmakers Jeong Dong-young (정동영), Han Min-soo (한민수), Hwang Jung-a (황정아) and Cho In-cheol (조인철) of the Democratic Party, Lee Hae-min (이해민) of the Rebuilding Korea Party, and Kim Jang-gyeom (김장겸) of the People Power Party. Its core is easing regulations on power and permits.

It includes a special provision exempting non-capital AIDCs from grid impact assessments. It also broadens the scope for power purchase agreements (PPA) signed directly with power generators without going through Korea Electric Power Corp. It allows direct transactions not only for renewable energy but also for energy sources that meet certain requirements. It also includes simplified permitting procedures and a basis for tax credits for AIDCs.

A key issue is disagreements with the Climate and Energy Ministry. The ministry opposes expanding power-related special provisions for a specific industry, saying it could spread to other industries. It also cites fairness with other industries.

There were differences within the committee as well. Democratic Party lawmaker Noh Jong-myeon (노종면) said, "If we cannot persuade the judiciary committee or it does not pass there, we will have to bring it back to this committee and persuade again, so don't we need more discussion here?" Democratic Party floor spokesperson Kim Hyun (김현) countered, saying, "In the process of discussions at the judiciary committee, there is a possibility that the Climate and Energy Ministry and the Ministry of Science and ICT will hold additional talks while adjusting the pace."

Committee chairwoman Choi said, "The validity of raising the issue is acknowledged," but added, "For now, we will pass the bill at the committee level and send it to the judiciary committee."

The implementation schedule was also adjusted. Han proposed an amendment to shorten the period from passage to implementation to 9 months from 1 year. Ryu Je-myeong (류제명), second vice minister of science and ICT, said the government would speed consultations among relevant ministries and prepare to implement it within 9 months.

The industry is expressing expectations. With electricity bills accounting for 40 to 60 percent of data centre operating costs, it sees faster domestic investment in AI infrastructure if uncertainty over power, site selection and permitting is reduced.

Meanwhile, 41 civic groups including the People’s Solidarity for Participatory Democracy are calling for the bill to be scrapped, saying allowing direct LNG PPAs runs counter to carbon neutrality policy.