The focus of AI competition is shifting from language models and graphics processing units (GPUs) to power efficiency. The concept of "intelligence per watt" is emerging as a new competitive edge in AI services, prompting South Korea's three major telecom companies to accelerate their energy strategies.
According to the International Energy Agency (IEA), global data center electricity consumption is projected to more than double from 415 terawatt-hours (TWh) in 2024 to a maximum of 945 TWh by 2030.
The power density of NVIDIA GPU racks has surged from 13 kilowatts (kW) in 2020 to 130 kW in 2025, with forecasts suggesting it could reach 600 kW in the future. Without sufficient power to operate these GPUs, maintaining competitiveness becomes increasingly difficult.
A recent report by the Harvard Business Review (HBR) analyzed the shift of scarce resources in the AI industry in three stages. It noted that access to frontier models and GPU and cloud capacity has now given way to electricity itself as the key bottleneck. The report termed this a "value cycle" and emphasized that "AI strategies can no longer be separated from energy strategies."
In response to this power bottleneck, South Korea's telecom companies are unveiling their strategies. They are differentiating their approaches through advancements in cooling technology, infrastructure efficiency, and renewable energy procurement.
SK Telecom Reduces Cooling Power by 93% with Liquid Cooling
SK Telecom (SKT) is leading in investments in cooling technology. In collaboration with SK Enmove and U.S. liquid cooling specialist GRC, the company has demonstrated that liquid cooling in its data centers can reduce cooling power by 93% and server power by over 10%. This method involves submerging heat-generating devices in a non-conductive special liquid, lowering the Power Usage Effectiveness (PUE) from over 1.5 for air-cooled data centers to around 1.1, resulting in more than a 30% reduction in power loss.
The company is also enhancing its infrastructure operations. SKT has invested $200 million in Smart Global Holdings (SGH), a U.S. AI infrastructure firm, to combine SGH's AI cluster development and operational capabilities with its data center management systems and liquid cooling solutions. Since last year, SKT's investments in the AI sector have exceeded $300 million.
KT Cloud Launches Korea's First Commercial Liquid Cooling
KT Cloud opened Korea's first commercial liquid cooling AI data center in November 2025. This system directly circulates cooling water over GPU chips, improving cooling efficiency by about 40% compared to air cooling and reducing overall power consumption by an average of 15%. The PUE improved from the previous range of 1.4-1.6 to below 1.2, and carbon emissions decreased by approximately 20%.
Liquid cooling can operate at high temperatures (over 45 degrees Celsius), facilitating pre-cooling (natural cooling) and integration with renewable energy. KT Cloud believes that securing energy efficiency in its infrastructure will be key to long-term competitiveness as demand for AI data centers rapidly increases.
LG Uplus Implements Dual-Track Strategy with Cooling and Renewable Energy
LG Uplus has adopted a dual-track strategy, pursuing both cooling technology and renewable energy procurement. In partnership with LG Electronics, it has introduced a Direct to Chip (D2C) liquid cooling method, which attaches a dedicated metal plate (cold plate) to GPU chips to directly remove heat using a cooling water distribution unit (CDU). Internal tests showed a 24% improvement in energy efficiency compared to air cooling. LG Electronics has already begun supplying liquid cooling solutions to the Pyeongchon 2 Center, and mixed cooling scenario tests are underway at the Anyang data center.
On the procurement front, LG Uplus signed a Power Purchase Agreement (PPA) with GS Engineering & Construction in January. This contract will supply approximately 17 gigawatt-hours (GWh) of renewable energy from a solar power plant in Taean, Chungcheongnam-do, over 20 years, starting in September. The agreement aims to replace up to 50% of the power used with renewable energy, potentially reducing annual greenhouse gas emissions by about 7,000 tons. From 2027, the company plans to pursue an additional procurement of approximately 10 megawatts (MW) annually for three years.
* This article has been translated by AI.
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