South Korea Tightens Data Center Placement Requirements in the Capital Region

Effective November 16, South Korea's grid impact assessment system (전력계통영향평가제도), adopted by the Ministry of Climate, Energy and the Environment (Minister Kim Sung-hwan), enters into force. The regulation formalizes the procedure refined during a pilot period that began in August 2024.

Scope of the Assessment

The system applies to all electricity consumers with a load of 10 MW or above nationwide, including those expanding their load to 10 MW or more. It also covers projects involving additional consumption exceeding 10 MW after a prior assessment has been completed. Specific exemptions are provided for territories and projects designated in the law.

Assessment Structure and Thresholds

The base scale comprises 55 points for technical criteria and 45 points for non-technical criteria, with the possibility of additional points being awarded or deducted. The passing threshold is 70 points for data centers outside the capital region and 75 points for the capital region — the higher threshold reflects the sustained heavy loads that data centers impose on metropolitan grid networks.

The technical component is divided into three blocks:

• Grid capacity reserve — 25 points;
• Complexity of securing that reserve — 20 points;
• Plan to minimize grid impact — 10 points (accounting for self-generation plans, deployment of xEMS energy management systems, and ESS storage installations).

Selecting a voltage level that does not match the optimal value for the declared contracted capacity results in a 15-point deduction.

Separately, regardless of the total score, mandatory conditions apply: under normal operating conditions, the equipment loading factor must not exceed 100%, and under calculated fault conditions the grid must meet established overload and voltage-maintenance criteria. Failure to meet any of these conditions renders the project non-compliant regardless of points earned.

New Electricity Consumption Density Criterion

A new indicator, "electricity consumption density," is introduced, calculated as the ratio of electricity sales volume to the area of an administrative district. Six regions are compared: the capital region, Gangwon, Chungcheong, Gyeongnam, Honam, and Jeju. If the density in a region exceeds the threshold set in the decree, the project receives a 5-point penalty.

Non-Technical Criteria and Bonuses

The non-technical component includes energy security, economic and social impact, project implementation sustainability, alignment with energy policy, and contribution to national priorities. An additional 5 points are awarded if the investor is prepared to provide land for new transmission lines or substations included in the long-term grid construction plan and has completed coordination with the transmission operator. A further 5 points (subject to supporting documentation) are granted to projects supported under the special distributed energy law.

Special Distributed Energy Zones

For zones oriented toward demand attraction (수요유치형 분산에너지특화지역), a simplified procedure applies: only technical criteria are assessed, and the passing threshold is 28 points.

Validity of the Assessment Result

The notification of the result is issued to the specific applicant and cannot be transferred to third parties. The validity period is 1 year from the date of issue; during this period, the grid connection application remains in effect. In cases of force majeure (natural disasters, etc.), a single extension of up to one year is permitted; the application must be submitted no later than 2 months before the expiry date. The voltage, capacity, address, start date, and obligations specified in the grid connection application must match the data in the notification.

Transitional Provisions

Projects that submitted applications before the decree entered into force but have not yet received a notification will be assessed under the new criteria and thresholds. For projects that have already received a notification, the previous result is retained, but the validity period is recalculated from the date the decree enters into force. Similarly, the validity of technical review results obtained before the decree takes effect is recalculated.

Pilot Data and Plans

Following the pilot period, the Ministry reported the following data: in the capital region — 28 projects with a total capacity of 1.9 GW; outside the capital region — 64 projects totaling 7 GW. The Ministry emphasizes that this indicates a redistribution of large loads to regional areas.

By the end of the year, the Ministry plans to prepare a detailed operational regulation with criteria for each item. In early 2027, a comprehensive information system is scheduled to launch, integrating document submission, intake, review, and result issuance into a single process and enabling applicants to track status online.

According to Lee Jae-sik, head of the Power Grid Policy Division at the Ministry, projects located in regions with surplus generation will receive expanded preferential treatment, which, in his assessment, will contribute to balanced territorial development and stable grid operation. He also stated the intention to ensure the prompt and transparent operation of the specialized expert review system.

Source: KHARN (칸), 2025