Korean Industry Calls for Reform of AI Data Center Procurement Standards to Support Domestic NPUs and Cooling Equipment
Korean firms and government held a roundtable demanding relaxed NPU entry barriers, streamlined approvals, and microgrid pilots to localize the AI data center supply chain.
On November 2, 2026, the Federation of Korean Industries (FKI) and the Presidential National Artificial Intelligence Strategy Committee jointly hosted a corporate roundtable on activating the AI data center industry ecosystem. Representatives from the Korean industry argued that to ensure large-scale AI data center investments translate into domestic corporate growth and exports, uncertainties in power supply and permitting must be reduced, and market entry opportunities for domestic AI semiconductors and power cooling equipment must be expanded.
In the semiconductor sector, although Korean domestic Neural Processing Units (NPUs) have entered the commercialization stage, companies pointed out that the main barrier to their adoption in data centers is compatibility issues with software environments dominated by overseas Graphics Processing Units (GPUs). Some public AI projects are tendered with assumptions about specific GPU products or server configurations, limiting opportunities for domestic NPU participation. Consequently, the industry suggested shifting procurement standards from hardware-brand-oriented to performance-and-capacity-oriented criteria for learning and inference, thereby unlocking initial demand.
Regarding infrastructure support, equipment manufacturers stated that despite possessing technology for transformers, switchboards, and cooling facilities, they face difficulties entering the market due to a lack of application track records and demonstration opportunities in data centers. Operators also expressed concerns about the costs and operational risks associated with introducing products with few verified cases. To address this, the industry proposed building large-scale test facilities, supporting demonstration participation costs, and simplifying the Korea Certification (KC) review procedures. Additionally, to tackle grid capacity shortages in renewable energy-dense areas like the southwest, companies suggested expanding demonstration exceptions to allow nearby data centers to be powered by microgrids combining self-generation facilities and Energy Storage Systems (ESS).