[Public Voices] Competitiveness in the AI Era Begins with National Power Systems

Jaejun Oh
Executive Vice President, Head of Gas Services Asia-Pacific, Siemens Energy

Jaejun Oh, Senior Vice President and Head of Gas Services Asia-Pacific at Siemens Energy

South Korea stands at a critical inflection point in the global AI race. The government has announced a massive investment plan worth 1,000 trillion won in advanced industries, including semiconductors and AI data centers. This demonstrates the government's strong commitment not only to semiconductors but also to solidify the nation’s position in core industries that will drive future economic growth, such as Physical AI, robotics, and advanced manufacturing.

Whenever we talk about competitiveness in the AI era, one question inevitably follows: Where, and how, will we supply the vast amount of electricity needed for a new, AI-based economy?

AI data centers, which require reliable operation 24 hours a day, consume a huge amount of power. According to the International Energy Agency (IEA), the global power consumption of data centers is projected to double by 2030. Power consumption at AI-specialized data centers is expected to grow even more rapidly.

In South Korea, special considerations include not only the concentration of electricity demand in specific regions, but also constraints on the power transmission infrastructure and local permitting issues surrounding infrastructure development. To strengthen its energy competitiveness in the AI era, South Korea must build a power system in which various energy sources play a complementary role.

First, there must be an energy base that can expand the supply of low-carbon electricity. Renewable energy sources such as offshore wind and solar power can both meet the increasing demand for low-carbon electricity and support energy transition and carbon reduction efforts. Nuclear power can supply stable, low-carbon electricity. The important thing is to combine the strengths of different power generation sources to create a balanced power portfolio.

Second, the system must have the flexibility to cope with changes in electricity supply and demand. The expansion of renewables must go hand in hand with securing flexible power sources that complement them. As the share of renewable energy rises, it becomes increasingly important to have resources that can respond to fluctuations in generation. Battery energy storage systems (BESS) enable flexible, short-term response to supply-demand variability by providing stored energy when demand rises. In addition, modern gas turbines enable swift response to changes in demand and the state of the grid.

Finally, in order to accommodate the inevitable growth in data center demand in the AI era, we must further strengthen both grid stability and transmission capacity. As the mix of power generation sources changes, technologies that help maintain stable grid operation become even more crucial. Synchronous condensers provide grid services such as inertia, voltage support, and short-circuit capacity, helping to ensure grid stability even as the power generation environment evolves. In addition, transmission infrastructure and grid modernization, including high-voltage direct current (HVDC), are needed to deliver electricity over long distances, from where it is produced to where it is needed.

This year, Siemens Energy opened Asia's largest gas turbine maintenance service center and enhanced its support capabilities, thereby contributing to Korea’s emergence as a global powerhouse in the AI era. South Korea possesses tremendous potential to lead the AI era, backed by world-class manufacturing capacity and engineering expertise. Now, it must establish a systematic framework that can accelerate growth based on these competitive strengths. By moving forward with the AI strategy and the energy strategy in tandem, Korea’s industrial competitiveness can reach even greater heights.

This content was produced with the assistance of AI translation services.