Demand and costs must also be considered for megaprojects

The rapid advancement of artificial intelligence (AI) is placing significant demands on global energy markets, as these cutting-edge technologies require vast quantities of electric power to operate. In response to this growing need, countries around the world are grappling with the challenge of expanding their energy infrastructure to meet the demands of the AI revolution.

This entails optimizing the power generation mix, investing heavily in transmission networks, modernizing outdated electrical equipment, and ensuring overall system stability while simultaneously navigating the transition to a more sustainable energy future.

Traditionally, structural changes in power markets have unfolded over long periods, guided by comprehensive long-term planning. However, the urgency of the AI revolution has introduced a new dynamic, necessitating rapid, short-term energy supplies. This has proven to be a formidable challenge for energy authorities and market participants, who must now grapple with the complexities of meeting the demands of AI-driven energy consumption within a tight timeframe.

Korea is actively responding to this challenge with the launch of its strategic "Three Major Megaprojects" initiative. This ambitious program places semiconductor manufacturing clusters and AI data centers at its core, recognizing their pivotal role in driving the nation's technological progress. According to published plans, the four proposed semiconductor plants will be located in Gwangju, a key industrial hub in the country.

These megaprojects are poised to significantly contribute to Korea's positioning as a global leader in AI and semiconductor innovation.