AI needs data centers, but Seoulites don’t want them next door

“We strongly oppose the construction of data centers that threaten health and property rights!”

The message appeared on a banner put up by residents near a semi-industrial area in Yeongdeungpo District, western Seoul, after plans for a five-story center there came to light.

Just 3 kilometers (1.9 miles) away, an eight-story center was already under construction in the Mullae-dong neighborhood of Yeongdeungpo District, in an area surrounded by several apartment complexes. Construction began in November of last year, with civil engineering work now in full swing.

When Choi Ho-kwon, then head of Yeongdeungpo District, visited the construction site last year, residents from nearby apartment complexes gathered to protest.

“The district head must take responsibility and revoke the data center designation,” they said. 

District heads push data center restrictions

Similar disputes about data center construction have recently arisen in Geumcheon District, southern Seoul; Goyang and Gwacheon in Gyeonggi; and Dohwa-dong in Nam District, Incheon.

As opposition to the centers grows among residents, district heads are pushing for regulation.

A proposal to require architectural reviews for construction was unanimously passed at a meeting of Seoul districts Wednesday, with 22 of Seoul’s 25 district heads in attendance — 15 affiliated with the Democratic Party and seven with the People Power Party.

The current Building Act sets the scope of projects subject to review by local government architectural committees through a presidential decree. Local governments, however, may establish additional review criteria and projects through their own ordinances.

In Seoul, municipal ordinances require new buildings of at least 21 stories or 100,000 square meters (1.08 million square feet) to undergo a review by the City Hall's architectural committee. Data centers are currently not subject to such a review, allowing them to proceed directly to the building permit stage.

The proposal approved on Wednesday, however, would require any centers planned in residential areas to pass separate architectural reviews by both the city government and the relevant district. The measure is intended to prevent centers from being built without approval from both parties.

The proposal will take effect if the city approves and amends the operating procedure of its architectural committee.

Under the Building Act, data centers are classified as Type 1 broadcasting and communications facilities, allowing them to be built anywhere except Type 1 general residential areas, which account for about 12 percent of Seoul.

If the proposal is implemented, it would also bar centers from Type 2 and Type 3 general residential areas, which together account for 39.5 percent of Seoul.

Seoul weighs data center restrictions

Data centers are essential infrastructure for the AI industry, and demand has surged with the rapid spread of generative AI. Because the centers require rapid data transmission and quick responses to technical and security issues, locations with good access close to urban areas are important. This is why more than 60 percent of the centers planned for construction in Korea are concentrated in the greater Seoul area.

“Data needs to be close to users to reduce transmission delays," said Lee Seung-won, an executive at ET Solutions, a company pursuing the construction of a center in Yeongdeungpo District. "Even if large-scale data centers are located outside the capital region, edge data centers connecting those centers with end users are needed throughout Seoul and the greater Seoul area."

A delay of just one-tenth of a second in data transmission could cause a self-driving vehicle to travel about 3 meters (9.8 feet) farther, potentially leading to an accident, Lee said.

“The site for the data center is private property, so how it is used is a matter for the owner to decide, and there are no legal issues whatsoever with building the data center," Lee added. "But construction has been delayed, which is frustrating. In the AI era, administrative authorities should actively mediate conflicts with residents with national competitiveness in mind.”

District heads, however, say construction in residential areas needs to be regulated because of serious complaints from residents.

Another proposal calling for a revision to the Building Act concerning data centers was also passed by the Seoul Metropolitan Council’s housing and spatial planning committee in April. Its provisions are similar to those approved by the district heads, calling for a formal process to gather residents’ opinions before construction and requiring the Seoul architectural committee to fully consider and review local conditions, including electricity self-sufficiency.

“I have been meeting residents since I was running as a candidate for the June 3 local elections, and many have voiced concerns about various adverse effects if data centers are built in densely populated residential areas,” Cho Yoo-jin, the current head of Yeongdeungpo District, said. “Relevant laws and ordinances urgently need to be revised so that individual districts can decide whether to allow data center construction based on local characteristics, including electricity and water supply issues.”

The city government takes a more cautious stance on introducing additional restrictions.

“Revising the Seoul architectural committee’s operating procedures or adding the provisions approved by the association of district heads is not impossible, but we are approaching the issue cautiously because it could serve as another form of regulation,” said Kim Jung-hyun, the head of the Seoul Metropolitan Government’s architectural policy team. “Once we receive the proposal from the association, we will formally review the city’s position.”

Resolving the conflict will require balancing the growing demand for data centers with the concerns of nearby residents.

“From the perspective of the AI industry, it is true that there is a severe shortage of data centers, but it is also understandable that nearby residents oppose them because having a data center built near their homes could negatively affect property prices,” Kim Tae-gi, a professor of economics at Dankook University, said. “The system should be improved so residents can participate in the decision-making process, and support should be provided to ensure adequate compensation, or data centers could provide facilities that local residents want, such as swimming pools and gyms. Both sides need to seek common ground through negotiation.”

BY MOON HEE-CHUL [lee.taehee2@joongang.co.kr]