Government Details Tender Process for Selecting GX Data-Center Clusters

The Working Group (WG) of Public-Private Advisory Council on Watt-Bit, which focuses on effective coordination between power and telecommunication, has outlined the details for selecting Data Center (DC) Clusters based on GX (green transformation) Strategic Areas through a public tender process. The selection will take place in two stages. First, municipalities proposing areas with strong potential for DC clustering will be designated as “promising areas.” Then, after examining infrastructure development schedules, costs, and overall project feasibility, the government will finalize the GX Strategic Areas. The application and review process will be accelerated, taking into account the time required for transmission system operators (TSOs) to conduct assessments.

Requirements and Data Considerations for Promising Areas

At the application stage, municipalities will not be required to submit detailed information on power system facilities; basic information such as location and capacity (MW) will suffice. TSOs will then assess whether the grid can be expanded over approximately ten years to accommodate demand of around 1 GW, after which promising areas will be identified. Municipalities selected as promising areas will then work with TSOs to refine their project plans, confirming whether supply voltages are suitable for DCs, verifying available supply capacity, and reviewing infrastructure costs.

The WG also refined the specific information required at the time of application. For assessing ground stability, examples include data on disaster occurrences over the past 30 years and hazard map information. Regarding communication with potential DC developers, municipalities will be asked to describe concrete details such as when discussions with developers began and the status of land acquisition procedures.

The requirement to secure up to around 1 GW of electricity supply capacity, coupled with expectations for linkage to decarbonized power sources, presents a significant hurdle for many municipalities. Only regions with both a robust grid infrastructure plan and readily available renewable or low-carbon power are realistically positioned to meet such criteria. Areas that already have large-scale renewable projects or are situated near future data center clusters are therefore likely to enjoy a clear locational advantage.