South Korea launches special electricity rates for AI data centers

South Korea's Climate and Environment Minister Kim Sung-hwan announced a new plan to boost the semiconductor and AI industries. It includes different electricity rates for different regions and a special rate just for AI data centers. The government wants to make sure factories and data centers can get cheap, stable power.

Under the plan, big AI data centers and semiconductor hubs in areas like Chungcheong and Yeongnam will pay less for electricity. The government also shared water and power plans: the southwestern semiconductor cluster will get 6.3 gigawatts of power, the Yongin cluster about 15 gigawatts, and AI data centers over 8 gigawatts by 2029.

Kim said semiconductors and electricity are now the two pillars of national power. South Korea's energy policy is shifting to support what he called the "AI era powered by electricity."