Korea Launches “AI Data Center Alliance”

On July 29, Korea’s Ministry of Science and ICT (“MSIT”) announced the launch of the AI Data Center Alliance (“Alliance”) at a ceremony attended by around 400 representatives from government, industry, academia, and research institutes, including the Ministry of Trade, Industry and Energy, the Financial Services Commission, and the Ministry of Land, Infrastructure and Transport.  The Alliance is designed as a public-private platform to coordinate and accelerate implementation of the government’s “AI Data Center National Strategic Industrialization” plan.

1. Background

The plan, announced on June 29 as one of three national mega-projects, calls for (i) building 18.4 GW of large-scale AI data center (“AIDC”) capacity, (ii) developing AIDC-related upstream and downstream industries for export, and (iii) establishing AIDC clusters and large-scale testbeds. The launch event drew bipartisan support from the National Assembly’s Science, ICT, Broadcasting and Communications Committee, with all participants affirming their commitment to the initiative. 

2. Governance Structure

The Alliance operates under a government-private co-chair system:

• Government co-chair: Deputy Prime Minister and MSIT Minister Bae Kyung-hoon
• Private-sector co-chair: Jeong Jae-heon, President of the Korea Association for AI & ICT Promotion (and CEO of SK Telecom)

Below the co-chairs are:

• A 12-member steering committee (Naver Cloud, Samsung SDS, SK Telecom, NHN Cloud, LS Electric, LG Uplus, LG Electronics, GS, Kakao, KT, KTNF, and FuriosaAI)
• Three working groups (Demand, Supply, and Foundation)
  ◦ Demand (chaired by Naver Cloud): brings together AIDC builders and operators to strengthen the competitiveness of domestic AIDC solutions and cloud technologies, validate them through large-scale testbeds, and foster cooperation between demand-side and supply-side companies.
  ◦ Supply (chaired by LG Electronics): comprises companies developing IT, power, and cooling solutions and is tasked with advancing and localizing core AIDC technologies and promoting interoperability and standardization.
  ◦ Foundation (chaired by Kakao): includes industry associations, universities, and law firms (e.g., Shin & Kim), and focuses on legal and regulatory reform to support the AIDC ecosystem and on developing field-oriented talent programs. 
• An export industrialization task force
  ◦ Bring together companies with export capabilities to develop tailored strategies for entering the global AI training market (currently dominated by big-tech hyperscalers) and the open-ecosystem AI inference market, as well as formulating a turnkey package export model targeting buyer countries such as the UAE—covering design, construction, and operations as an integrated offering.
• Secretariat support from the Institute of Information and Communications Technology Planning and Evaluation (IITP)

3. Upcoming Milestones

4. Key Takeaways 

(1) A unified policy window: The Alliance is notable for consolidating multiple government ministries and a broad cross-section of private-sector players—telecom, cloud, power, equipment, semiconductors, industry associations, universities, and law firms—into a single coordination body.  Issues ranging from technology advancement and funding to regulatory reform and talent development will now be addressed through a single platform, rather than across fragmented ministerial silos.  Companies engaged in or considering entry into the Korean AIDC market should closely monitor the Alliance’s policy discussions. 

(2) Regulatory reform on the horizon: The Foundation Working Group is tasked with proposing reforms to long-standing regulatory issues, such as grid connectivity, siting and permitting, distributed energy, and cloud/data regulations.  This represents a valuable opportunity for stakeholders to contribute input at an early stage of regulatory design.  Companies should proactively identify relevant regulatory items affecting their operations and engage with the working group process. 

(3) Cross-border package exports and associated legal complexity: The push to export integrated AIDC packages to countries like the UAE will inevitably raise complex legal issues, including consortium formation, IP ownership allocation, cross-border data transfers, local regulatory compliance, and export controls.  Companies considering participation in such projects should conduct thorough contract and regulatory risk assessments. 

(4) Standardization as a market-shaping force: The Supply Working Group’s interoperability and standardization initiatives may ultimately shape procurement requirements and international standards alignment.  Companies should track the direction of these discussions to inform their own technology and product strategies. 

About Shin & Kim’s ICT Group

Shin & Kim’s ICT Group possesses unparalleled expertise in the ICT sector, consistently earning top-tier client recognition in recent years.  Drawing upon our deep-seated capabilities in broadcasting, telecommunications, personal information protection, and internet IT, we deliver the highest level of legal advisory services encompassing regulatory trend analysis in broadcasting, telecommunications, and ICT; government affairs, legislative improvement and consulting; regulatory impact assessment; and corporate strategic planning.  Furthermore, we possess extensive professional experience and expertise in AI compliance and security incident response.  Please contact us if you have any questions or require more information.

[Korean version] AI 데이터센터 국가 전략 산업화를 위한 ‘AI 데이터센터 얼라이언스’ 본격 가동