2024-02-13 03:31:45
Solaseado Data Center (DC) Park is steadily progressing according to the planned construction schedule. Solaseado, which completed the reclamation of public waters in 2017, 10 years following the establishment of SPC in 2007 and the approval of the development plan in 2010, is expanding accessibility by securing a business site in 2018, completing the construction of a solar power generation complex, and opening the Solaseado Bridge in 2022. .
DC Park, which occupies 1.65 million ㎡ (approximately 500,000 pyeong) of industrial land in Solaseado, is also in the final stage of site development for the first stage and is preparing to install a network communication network. We are accelerating the search for tenant companies with the goal of completing the first stage by 2028.
Solaseado DC Park, which is being promoted as Korea’s first DC integration complex, will be built on a 1.65 million ㎡ site, including 990,000 ㎡ (regarding 300,000 pyeong) for DC and 660,000 ㎡ (regarding 200,000 pyeong) for related industries. Based on the receiving capacity, we plan to attract a total of 1GW in 25 buildings of 40MW class and will be constructed with a building-to-land ratio of 70% and a floor area ratio of 400%. Its future role as an all-weather DC integration complex including industrial facilities such as large-scale DC and related vendors is attracting attention.
Solaseado DC Park’s investment scale is 10 trillion won, and an economic ripple effect of 14.5 trillion won and an indirect employment effect of more than 68,000 people are expected from the construction stage. In addition, when operating 1GW, the direct employment of more than 5,000 people, the employment effect of 16,000 people, and the effect of inducing annual production and added value of 3.2 trillion won are expected.
Solaseado DC Park is expected to serve as a gauge to determine whether the policy direction of resolving power supply and distribution problems, which are occurring due to the concentration of metropolitan areas, through local decentralization policies will be successful. This is because it is a rare case where RE100 can be achieved based on a large site, low CAPEX and OPEX, and rapid business progress, and above all, based on Jeollanam-do’s abundant renewable energy.
In reality, it is difficult for a DC construction and operation company to change its business location to a non-metropolitan area, leaving behind numerous end users in the metropolitan area. Industry insiders agree that since DC uses and target customers to be located in the metropolitan area are different from DC uses to be located in non-metropolitan areas, a thorough review and policy direction should be established for each rather than blanket regulation.
In this project, we look at the content and progress of the Solaseado DC Park project and the meaning of Solaseado DC Park in various national policies surrounding DC, such as RE100, local decentralization, and distributed energy.
Unusual RE100 DC integrated complex
Solaseado DC Park is a project of national significance in that it covers all of the enormous power consumed in DC with solar and wind power generation and builds infrastructure to directly supply renewable energy as distributed energy.
In the era of super-giant AI, where computing power is rapidly increasing, the increase in data demand is an inevitable factor in the construction of DC as an infrastructure.
The International Energy Agency (IEA) analyzed that the number of Internet users and traffic has increased rapidly in recent years, leading to a surge in data demand. Internet users increased 78% from 3 billion in 2015 to 5.3 billion in 2022, and traffic increased 600% from 0.6ZB in 2015 to 4.4ZB in 2022.
Accordingly, the global DC market is also growing. According to Research and Markets, a global market research and analysis agency, the global DC market will grow from $215.73 billion (approximately KRW 279.845 trillion) in 2022 to $289.66 billion (approximately KRW 375.747 trillion) in 2028. It is expected to record a CAGR of 5.0%.
In Korea, the market has also achieved significant growth and the growth potential is good, but recently there is a perception in the industrial field that this is not very optimistic. Although sustainability and RE100 are the top priorities for the DC industry, domestic renewable energy supply is insufficient, and the Ministry of Science and ICT’s broadcasting and communication facility protection guidelines have been strengthened and various regulations are increasing. Foreign capital that was considering entering the country is turning to Southeast Asia.
In particular, developers who preemptively purchased land based on optimistic DC business prospects are deteriorating business feasibility by offering very high asking prices compared to land prices under the pretext of securing power reception capacity.
Nevertheless, according to the Korea Data Center Association (KDCC), there are a total of 187 DCs in Korea as of 2022, an increase of 25 compared to 2021. Among them, 94 are public DCs and 93 are private DCs. Among the private DCs, 41 are for company use and 52 are for commercial use.
According to the Korea Data Center Energy Efficiency Association (KDCEA), domestic commercial DCs showed a CAGR of 4.9% from 21 in 2010 to 39 in 2023, but 34 concrete projects are expected to be added by 2027. Accordingly, a total of 73 are recorded, and the new investment alone is expected to reach 17 trillion won, with a CAGR of more than 17% expected following 2023.
Differences in speed are expected depending on policy direction and investment conditions, but DC is analyzed to be bound to increase in the future.
However, since DC consumes a huge amount of energy, it is important to prepare countermeasures. This is also the reason why sustainability has been presented as a topic in the DC industry recently. According to Enerdata, a global energy statistics agency, global annual electricity consumption is approximately 25,530 TWh as of 2022. This is an increase of approximately 2.01% compared to the previous year.
IEA analyzes that DC accounts for approximately 1-1.5% of global electricity consumption. The estimated global DC power consumption in 2022 is 240-340 TWh, accounting for approximately 1-1.3% of global final power demand, and this figure excludes energy used in cryptocurrency mining. The energy used in cryptocurrency mining is estimated to be regarding 110 TWh, or 0.4% of global electricity demand, as of 2022.
Even in Korea, the proportion of DC power consumption is significant. According to KDCEA, as of 2021, the annual electricity consumption of domestic commercial DCs is estimated to be regarding 4,808 GWh. This corresponds to approximately 0.9% of the total domestic power generation of 509,270 GWh in 2021 and approximately 1.7% of the total industrial energy consumption of 278,660 GWh. This means that as of 2021, only 39 DCs consume 1.7% of the energy used by all industries, so measures are urgently needed.
Solaseado DC Park’s strategy is to build RE100 DC using Jeollanam-do’s abundant solar and wind power. There are rare cases in the world where a DC integration complex with a receiving capacity of 1GW has been achieved with RE100.
Promotion of distributed energy special zone based on renewable E
The biggest differentiator of DC Park is renewable energy. Currently, ‘Garden of the Sun’, a solar power complex with a capacity of 100MW in Solaseado, is operating normally. In addition, 600MW in the nearby Budong district, 400MW in Sani 2-1 section, and 400MW in Munnae Hyeoldo reclaimed land are planned to be additionally constructed. Currently, the Garden of the Sun is connected to South-East Power, but the area to be built in the future will supply power directly to DC Park. This is a project that responds well to the distributed energy policy being promoted nationally by enacting a special law.
Demand for ESG management is increasing around the world, and demand for RE100 is rapidly increasing in accordance with each country’s CBAM (carbon border adjustment system) and carbon system. Currently, domestic renewable energy procurement methods that can be recognized as global RE100 can be divided into five types: △Direct PPA △Third-party PPA △VPPA △REC purchase △Green premium.
There are limits to supplying 100% of DC power usage when a company directly builds and owns renewable energy facilities, so external procurement is mainly used. At this time, the supply conditions of procurable renewable energy are important, and RE100 can be achieved by combining various implementation measures based on user needs.
Jeollanam-do, where Solaseado is located, boasts the highest level of solar radiation in the country. According to the Korea Institute of Energy Research (KIER), the Jeonnam region centered on Mokpo ranked first in the country at 2.13 kWh/㎡/day, higher than Jeju (1.78 kWh/㎡/day) or Busan (2.02 kWh/㎡/day). I’m doing it.
Accordingly, the unit price is also advantageous. The unit price of land solar power per kWh is 124 won in the Jeonnam region, which is cheaper than △Jeonbuk 135 won △Gyeongbuk 138 won △Gangwon 143 won △Gyeongnam 144 won △Chungbuk 144 won △Chungnam 148 won.
The renewable energy projects based on solar power in Jeonnam Province are △Haenam 3,338MW △Yeonggwang-gun 190MW △Shinan-gun 1,176MW △Muan-gun 136MW △Naju-gun 97MW △Yeongam-gun 2,742MW △Yeosu-gun 74MW △Gangjin-gun 170MW △Goheung-gun 526MW △The operating facility capacity, including 273MW in Jindo-gun, is The installed capacity is 1.3GW, and the total capacity under development is 1.3GW, including 6.3GW in the planned development area, reaching a total of 9GW.
In Korea’s case, unlike developed countries that have surpassed grid parity, renewable energy procurement costs are more expensive than electricity bills. However, if you sign a PPA, you can use renewable energy at a fixed price for more than 10 years, while avoiding the uncertainty that electricity rates are expected to continue to rise due to recent global supply chain issues, energy transition, and expansion of infrastructure investment. can do.
In particular, we are also promoting the designation of distributed energy special zones in response to the Distributed Energy Special Act, which was enacted in May of last year and is scheduled to go into effect in June. Currently, the Ministry of Trade, Industry and Energy is establishing enforcement decrees and enforcement rules in response to the Special Act on Distributed Energy.
The Special Act on Distributed Energy disperses the existing centralized power system to regional areas. △Imposition of the obligation to install distributed energy to encourage the use of distributed energy by new residential sites, urban development businesses, and businesses that consume large amounts of electricity. △Conducting a power system impact assessment. △Distributed energy specialized areas. Designation, etc. are the main contents.
Once designated as a distributed energy specialized area, special provisions for power trading are applied, allowing both power generation and sales businesses, and free power trading between power producers and consumers.
Currently, the area near Solaseado has the country’s most abundant renewable energy resources, but business development is being delayed due to a lack of a power system that can connect them. The renewable energy power generation project is being promoted on a scale of approximately 20GW, including wind and solar power. Based on the permitted capacity, the scale is 10GW for wind power and 10GW for solar power, but the installed capacity is only 0.3GW for wind power and 4GW for solar power. Approximately 97% of wind power and 60% of solar power are not connected to the grid, resulting in a low project progress rate compared to permits.
Solaseado is planning a renewable energy hub terminal to accommodate this energy and create a carbon-neutral city. The Renewable Energy Hub Terminal is a model that can maximize the use of renewable energy with minimal system conditions by directly connecting renewable energy supply and demand, and fits well with the concept of a distributed energy special zone. Jeonnam Province, Korea Electric Power Corporation, renewable energy suppliers, and renewable energy demand companies are planning to form an initiative and pursue it.
Actively promoting non-metropolitan DC concerns
After going through the business preparation stage last year, including establishing a DC Park development project plan and establishing a cooperative network for related organizations, foundation work will begin from this year to next year. We plan to prepare support measures such as policy commercialization and attract anchor companies and end users. Afterwards, starting in 2026, the park construction stage will begin, including the start of DC construction for Big Tech and the occupancy of RE100-specialized DC and related organizations. Construction will be completed in stages, including the first stage in 2028, the second stage in 2032, and the third stage in 2037, and will be operated following 2038. ‧Entering the stabilization stage.
Looking at the lot status, the first stage section consists of 12 lots, including 7 industrial facilities, 4 support facilities, and 1 infrastructure facility, covering an area of 290,000 m2, and the second phase consists of regarding 40 lots, including 22 industrial facilities, 3 support facilities, and 1 infrastructure facility. We supply 10,000 m2. Phase 3 consists of 17 industrial facilities, 4 support facilities, and 1 infrastructure lot with a total area of 470,000 m2.
When selling a lot, a contract condition is that construction must begin within two years of the contract, and the permitted use of the building must be broadcasting and communication facilities (data centers) and auxiliary facilities in accordance with the Enforcement Decree of the Building Act. The down payment is 10%, and the balance can be paid in short-term or installments.
DC Park is planning to build two new 154kV substations. It was reflected in the 10th long-term transmission and substation plan, and the first substation is being discussed with Korea Electric Power Corporation (KEPCO) with the goal of completion in December 2025. Additional substations are scheduled to be built in line with the development of DC Park. As the substation is located within the site, the cost of constructing a transmission line between DC and the substation can be reduced, and redundancy within the same substation and substation redundancy when building an additional substation will also be supported.
In order to respond to concerns regarding network delays due to the nature of DCs located in rural areas, Solaseado negotiates with all domestic telecommunications companies to enable network interconnection and construction of dark fiber (optical fiber cables that are laid but not yet in use). Depending on the user’s characteristics, it is possible to connect to a public or private network domestically or overseas, and supports carrier and line redundancy. Additionally, we are considering support policies with the government to reduce the burden of user communication costs.
Improvement of business feasibility, such as reducing E costs and expanding incentives
Solaseado DC Park offers various CAPEX (capital expenditure) and OPEX (operating expenditure) reduction plans. By securing a large site, the construction period is shortened, horizontal expansion is possible, and construction costs are low, making it the optimal location for a warehouse-type DC type.
In the case of DC in the metropolitan area, various living conditions are provided near the site and accessibility is excellent. In particular, the large number of end users is a strong advantage that makes concentration in the DC metropolitan area inevitable, so commercial DCs focusing on co-location consider the metropolitan area as a top priority.
However, from an architectural perspective, non-metropolitan warehouse-type DCs have great advantages. Building-type DCs in the metropolitan area have limited space and high land prices per unit area, so the site must be minimized, so high-rise plans of 5 to 10 stories are needed, and a depth of more than 10 meters underground must be planned to secure the floor area ratio. Since the site is utilized to its full potential from the beginning, expansion is difficult and expandability is limited. The project cost is also high, and the construction period usually takes 24 to 36 months.
In comparison, warehouse-type DCs in non-metropolitan areas can secure a large site and are advantageous for low-rise planning of 2 to 4 floors, so planning is possible without underground structures. The site cost per unit area is low, the construction period can be shortened to 14 to 18 months, and horizontal expansion and extension are possible using a modular structure. The selling price of the Solaseado DC Park parcel is regarding 302,000 won per m2, which is regarding 1 million won per pyeong.
Accordingly, if you build your own DC or global CSP region in addition to a commercial colocation DC, it provides greater advantages than a metropolitan area DC. The government and local governments are providing incentives to revitalize non-metropolitan DCs and are reviewing additional support measures.
The Ministry of Trade, Industry and Energy has prepared a customized evaluation package for companies, including regulatory special provisions and subsidy support, to encourage regional dispersion. Through the investment attraction system, regulatory special cases such as relaxation of building-to-land ratio and floor area ratio are provided, and administrative support such as licensing agenda is provided. In addition, companies that build or expand DCs in rural areas will receive 3-24% of facility costs and 9-50% of location subsidies through local investment promotion subsidies from the Ministry of Trade, Industry and Energy.
In addition, incentives such as discounts on power facility charges are provided when locating in a non-metropolitan area. For 22.9kV users, KEPCO provides a 50% discount on facility construction costs, and for 154kV high-capacity power consumers, the reserve power fee equivalent to the emergency line usage fee is exempted. Based on 60MW, an annual OPEX reduction of 160 million won is expected.
Jeonnam Province also prepared incentives at the local government level. Domestic and foreign companies and U-turn companies making large-scale investments in the province will be provided with subsidies ranging from a minimum of 10 billion won to a maximum of 100 billion won through deliberation depending on the investment size, and free land provision and long-term enlistment will be promoted.
Solaseado DC Park expectations and concerns coexist
There are both expectations and concerns regarding Solaseido DC Park. There are concerns that local decentralization is realistically difficult and expectations are that it will be able to create a turning point in terms of long-term development direction in terms of RE100, local decentralization, and distributed energy.
However, experts advise that regional decentralization should not be forced on all DC business operators and that precise policy preparation is essential. Metropolitan area DCs and non-metropolitan area DCs must be approached differently in terms of policies and systems depending on the differences in purpose, purpose, and core target.
An official from Solaseado Special Purpose Corporation (SPC) Southwest Coast Corporate City Development drew the line that co-location commercial DC operators are not the top priority for discussion to attract DC Park. He said that discussions are underway from the perspective of domestic and foreign major CSPs and DC operators’ regions or their own DCs, and that quite advanced discussions have recently been taking place with several global CSPs.
With Solaseado DC Park, DC, which is recognized as a social infrastructure, can strengthen not only business feasibility but also many public functions such as △carbon neutrality △sustainability △ESG △RE100 △balanced national development △resolving concentration in the metropolitan area △activating distributed energy △energy conversion. It remains to be seen whether it will happen.
Solaseado is
Solaseado is a future city construction project being built in the Guseong district of San-myeon, Haenam-gun, Jeollanam-do. In response to climate change and the era of low growth, the goal is to build a city that is sustainable for both people and nature through digital technology. The project site is a reclaimed land with flat terrain and is owned by a corporation in which the public participates as shareholders, making it Korea’s largest public-private cooperative development enterprise city capable of rapid large-scale development.
It is led by the Southwest Coastal Enterprise City Development, a special purpose corporation (SPC) invested by Jeollanam-do, Jeonnam Development Corporation, Korea Tourism Organization, Gwangju Bank, and Boseong Group. The capital was 90 billion won, with 20% invested by the public and 80% by the private sector.
Solaseado focuses on combining carbon-neutral technology and digital technology with the goal of creating a sustainable future city. A district designation and use plan was established under four themes: △Renewable Energy City, △Garden City, △Smart City, and △Human City.
RE100 renewable energy city slogan
Solaseado has the most abundant renewable energy resources in the country. Based on this, we plan to create an RE100 industrial belt and build a sustainable city that realizes carbon neutrality. The three axes are renewable energy power generation complex, RE100 cluster, and RE100 city. A large-scale renewable energy power generation complex will be built and the produced energy will be supplied to RE100 clusters and RE100 cities. The RE100 cluster is an industrial complex dedicated to renewable energy and provides local jobs, and the RE100 city provides settlement conditions and economic systems such as housing, commerce, leisure, and tourism. The plan is to build this self-reliant ecosystem to revitalize the local economy as a carbon-neutral smart city.
As a RE100 cluster, Solaseado industrial land covers 1.65 million ㎡ (approximately 500,000 pyeong), including 600,000 ㎡ (approximately 180,000 pyeong) of usable industrial land, 600,000 ㎡ of mixed-use land for tenant companies, and 460,000 ㎡ of infrastructure land (approximately 14,000 pyeong). It consists of cartoons). The industrial site will be built as a DC integration complex and is located in the center of Solaseado, designed to ensure sustainable management conditions for tenant companies and abundant residential conditions for workers.
The cluster includes the Green Convergence Cluster to foster green industry-related research institutes and the Carbon Neutral Edu Center to exhibit, educate, and experience the need for carbon neutrality.
Among them, the green convergence cluster includes research facilities such as △carbon reduction research facility △resource circulation research facility △research support center △educational support center △biocar processing facility △test bed site △free design area △carbon reduction building △resource circulation building, etc. It is classified as an industrial complex.
When the carbon-neutral green convergence cluster project was reflected in this year’s government budget, Haenam-gun announced on January 4 that it would pursue the project in earnest. Through a concrete business plan, it will be promoted as a full-cycle support facility, including research and development of panel reprocessing technology following solar energy use, demonstration, and market development, and the Ministry of Environment will invest 45 billion won in project expenses. Within the cluster, most of the original plans were reflected, including R&D facilities, verification test beds, testing and certification centers, and corporate support facilities. The Ministry of Environment plans to designate Haenam-gun as a new green convergence cluster project target soon, and plans to begin basic planning service this year and complete construction in 2028.
In addition, the Carbon Neutral Edu Center is an exhibition, education, and outdoor experience facility with a project cost of KRW 42.5 billion on a 50,000㎡ (approximately 15,000 pyeong) site, with a theme experience center, energy garden, smart farm, technology promotion center, eco trail, observatory, It includes a future industrial garden, etc. The goal is to complete the detailed design this year and begin construction in 2025 with Level 1 Zero Energy Building (ZEB) certification.
Presenting the ‘eco-friendly smart city’ paradigm
Solaseado plans to present a new smart city paradigm. The plan is to build a self-driving mobility service powered by eco-friendly energy, a mobility hub (transfer center) located at each major hub, and a virtual space that implements real space into a metaverse. Various data generated during this process are collected and structured in the data hub built within Solaseado.
Solaseado, which is being developed with a ‘multi-core structure’, is created as an expanded model of a mobility hub by creating a core space called LCP (Lifestyle Core Platform) at each key point responsible for major functions and establishing a transfer system that connects them. Each mobility hub commonly has a transfer parking lot, an autonomous EV charging station, and a distribution, commercial, and logistics center, and each hub combines specialized functions such as transportation logistics, residence, and business.
In particular, in order to establish itself as an autonomous city, we plan to establish an environmental self-driving mobility system that provides new experiences and values, such as introducing EVs charged with renewable energy power and autonomous driving mobility using LCPs at major hubs in the city.
In addition, Solaseado plans to introduce the Metaverse platform. The idea is to apply ICT such as LiDAR to implement key spots in Solaseado as a metaverse, monitor risk factors in residential areas, and create an expanded city by building a metaverse that connects reality and virtual space, such as safety method services. Lidar is a device that accurately depicts the surroundings by firing a laser pulse, receiving the light reflected from surrounding objects, and measuring the distance to the object. Unlike radar, which uses radio waves to calculate distance, speed, and direction, LiDAR technology, which detects objects using light, can generate distance, speed, and direction as well as 3D images, enabling more accurate identification of the shape and size of the object. there is.
Various data generated in the city are safely stored and managed in DC Park, a DC integration cluster. A data hub is located in DC Park, which functions as a governance management system, data analysis platform, data linkage system, and integrated storage in relation to smart IoT, digital healthcare, metaverse, and autonomous driving.
Promoting a self-sustaining ‘human city’
Solaseado is a sustainable city that will have residential facilities to secure the permanent population and convenience, tourism, and leisure facilities to provide living conditions.
The planned population of Solaseado is approximately 14,000 households and 36,000 people, and a housing complex is being developed that takes various lifestyles into consideration, such as leisure activities and healthcare services, with an emphasis on resident convenience facilities including a community center. Hotels, resorts, marinas, shopping centers, floating performance halls, community centers, golf courses, etc. were planned throughout Solaseado. The apartments will be supplied by Hanyang, part of the Bosung Group, under the ‘Sujain’ brand, and Terrace House plans to select a construction company and sell them through bidding.
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