South Korea’s data-center power outlook puts grid access and contracts at the center of energy-asset valuation

Jipyong’s legal review examines the regulatory framework relevant to transactions involving energy assets that may supply data centers in South Korea. Its central conclusion is that the investment case for generation is increasingly shaped by the practical and contractual ability to deliver power, rather than installed capacity alone.

The review points to permits, grid connection and power-sales agreements as the three core legal variables in energy-asset transactions. For data-center operators, developers and investors, those factors affect whether generation can be connected on schedule, whether output may face curtailment risk, and whether revenue arrangements provide a durable basis for power supply.

The Energy Economics Institute projects South Korean data-center electricity consumption to rise from 5 TWh in 2023 to 31.6 TWh by 2040. That projection is not a measure of current demand or guaranteed future load, but it frames the growing importance of power-delivery risk in data-center infrastructure planning.

The regulatory backdrop is also changing. The Special Act on the Expansion of the National Backbone Power Grid took effect on 26 September 2025. A separate Special Act on the Promotion of Offshore Wind Power and Industrial Development took effect on 26 March 2026. The government has also indicated that a competitive-bidding-based contract market is planned to apply to new renewable-energy facilities from 2027.

Jipyong notes that co-locating generation and data centers could reduce dependence on the external grid. However, co-location does not automatically create a right to freely supply power directly to a data center, according to the review. Transaction diligence therefore still needs to assess the applicable legal and commercial route for power delivery.

The broader M&A environment reinforces the focus on asset quality over nominal scale. PwC data cited in the review show that the number of global M&A transactions across energy, utilities and resources fell 2% year on year in 2025, while transaction value increased 27%. In this context, the review suggests that assets with confirmed permits, realistic interconnection timelines and resilient contracted revenues could command greater strategic value than projects defined principally by stated generating capacity.