AI data centers are rapidly emerging as the new digital gold mines of the 21st century, transforming from mere infrastructure into strategic assets with profound national implications. Across the globe, nations are engaged in intense competition to secure control over these vital resources, a contest that surpasses technological dominance and has become a key battleground shaping future geopolitical and economic realities.
As Canadian billionaire investor Kevin O’Leary pointed out, calling “AI data centers the gold rush of today,” this sector has ascended as the new benchmark of national competitiveness. But this competition is far more complex than building advanced facilities; it encompasses critical issues such as environmental impacts, policy support, technological independence, and data security. Countries worldwide are mobilizing enormous efforts to address these challenges, knowing that the outcomes will determine global leadership in the digital age.
Amid this fierce international race, South Korea has charted a distinctive strategy. President Lee Jae-myung recently announced plans for the construction of a mega AI data center in Ulsan, poised to become Northeast Asia’s largest. This center will have a power capacity of 1GW and will be built in collaboration with SK Group and Amazon Web Services (AWS). President Lee Jae-myung emphasized that this project will lay the foundation for South Korea to become one of the world's top three AI technology powers. This project embodies the nation’s bold vision for developing a “Sovereign AI” — a state-of-the-art system that ensures Korea’s technological independence. Unlike conventional infrastructure, this initiative seeks to carve out Korea’s unique niche in the global AI landscape by integrating Korean-language data and fostering homegrown models grounded in local laws, culture, and ethical standards.
The core aim extends beyond mere localization: it centers on achieving AI sovereignty—that is, technological autonomy paired with policy control. The emphasis on developing domestically driven AI models—such as Korea-specific models like “Sovereign AI”—underpins this approach. These models, trained on the Korean language and data, are designed to operate independently, free from reliance on external platforms, and aligned with local laws and values.
Essentially, Korea’s pursuit is not simply about nationalizing AI tools but securing strategic control over critical technological infrastructure. This includes nurturing a vibrant domestic ecosystem of AI development and ensuring policy tools remain within national reach. Achieving AI sovereignty will be a cornerstone of Korea’s broader ambitions to strengthen its standing as a global AI powerhouse, securing competitive advantages and fostering innovation across sectors—including health, manufacturing, and sustainable development.
The global data center industry is also undergoing a fundamental transformation, driven by environmental and ethical standards. The United States has led this charge, with Silicon Valley giants pioneering “green data centers” that combine cutting-edge technology with renewable energy. Companies like Google and Microsoft are leveraging nuclear and renewable power sources to minimize environmental impacts, though scalability and regulatory challenges persist.
Europe, prioritizing climate action and sustainable development, has adopted natural cooling technologies and renewable energy solutions, especially in Nordic countries such as Finland and Iceland, which capitalize on their cold climates to reduce cooling costs and energy demands. The European Union is also actively promoting “green data centers” through data privacy and ethical standards, striving to balance environmental regulations with data protection.
Canada is expanding its eco-conscious strategy through projects like the “Wonder Valley,” where off-grid data centers in Alberta use renewable energy and environmentally friendly cooling systems. These efforts aim to harmonize data sovereignty with regional ecological integrity, setting international standards for environmentally responsible infrastructure.
China is rapidly constructing massive data centers under government guidance, seeking to bolster domestic technological competitiveness and assert greater control over data sovereignty. Its strategy emphasizes self-reliance, with the goal of expanding influence in the global AI market while safeguarding national security.
Japan’s focus centers on eco-efficient cooling technologies and integrating data centers with smart city initiatives—combining innovation with sustainability to retain its competitive edge in Asia’s evolving landscape. The common thread across these regional approaches is a shared commitment to growth opportunities and sustainability—each tailored to local strengths and challenges—reflecting a larger trend of aligning data infrastructure development with environmental imperatives.
Strategy and Challenges
In the face of this global surge, Korea’s path emphasizes a delicate balance: achieving technological sovereignty while progressing toward sustainability. The Ulsan AI data center symbolizes this vision, aiming to bolster domestic technological capabilities and establish a unique, independent AI ecosystem.
However, accomplishing these ambitions requires a societal consensus on key issues, such as power infrastructure, regulatory frameworks, and the sustainability of energy consumption. President Lee Jae-myung is advocating for becoming “one of the top three AI powerhouse nations,” while simultaneously planning to distribute AI services nationwide for free and prioritize Korean-language AI development. Yet, critics caution that pursuing “Sovereign AI” could be risky if not carefully managed, warning that focusing too heavily on local data and models might overlook potential pitfalls, such as security vulnerabilities or technological isolation.
Supporting this, some experts emphasize the importance of clearly defining Korea’s ultimate goals for Sovereign AI. Should Korea aim to secure a global leadership position in AI—contributing to tackling climate change, energy efficiency, healthcare innovation, and industrial productivity—or should the focus be on democratizing AI through more open, accessible platforms like Latin America’s LATAM-GPT? Clarifying these objectives is crucial for setting strategic priorities.
Financial support is also a significant obstacle. Regardless of the method used, building Korean-style sovereign AI technology requires substantial investment, making financial support a key challenge. President Lee proposed the establishment of a public-private joint fund to support AI startups. President Lee also expressed a positive view of the approximately 10 trillion won innovation startup fund proposed by SK Group Chairman Choi Tae-won, anticipating that it would reduce the government's financial burden by establishing a foundational fund.
If Korea successfully establishes itself as a global leader in Sovereign AI and secures a top-three position in worldwide AI technology, it could become much more than just a data storage hub: it would serve as a core ecosystem fostering AI innovation and technological breakthroughs. Such a role would position Korea as a pivotal hub for AI R&D, attracting global talent, investment, and collaboration.
To realize this vision, the Korean government must carefully navigate the delicate balance between technological sovereignty and sustainability. This isn’t merely a contest for market share but a contest that will shape the future of the world's leading tech industry and sustainable development.
In essence, AI data centers have transcended their initial concept as mere technical infrastructure. They are now critical strategic assets—foundations for a sustainable future, environments of trust, and key pillars supporting both domestic innovation and Korea's standing in the global arena. Building such capacity is crucial, not only for national prosperity but for maintaining a leadership role in the world's rapidly evolving realm of AI frontiers.
You can find the Korean version of this article here.
