Changes in US data center construction policy are bringing the global AI infrastructure market into a new phase. As rapidly growing numbers of data centers give rise to social problems, including electricity and water shortages and higher living costs for local residents, calls are growing to restrict new construction or tighten project approval procedures.
In particular, the possibility of tighter data center regulation following the US midterm elections is expected to bring changes to global technology companies' investment strategies. The United States is a key data center market driving the AI industry and a major destination for South Korean construction companies expanding overseas. Delays to new construction in the United States or a deterioration in investment conditions could create new opportunities in South Korea's data center construction and equipment markets. However, a contraction in global AI infrastructure investment itself could instead have negative effects on South Korea's semiconductor and construction industries.
Ultimately, tighter US data center regulation is expected to present a complex set of factors for South Korean builders, rather than being straightforwardly positive or negative.
Possible limits on US data center expansion
Community opposition to data center construction is spreading in the United States.
The rapid growth of the AI industry has brought a succession of large data centers, sharply increasing electricity consumption and water use. Concerns are growing that the resulting costs of expanding the power grid and higher water bills could be passed on to local residents.
Data centers consume enormous amounts of electricity because their servers and cooling equipment must operate 24 hours a day. Depending on the cooling method, they also require substantial quantities of water. In the United States, calls for a temporary halt to new data center construction or stricter regulation of electricity and water use are spreading into political circles.
In particular, political groups that made data center construction moratoriums and protection for residents key campaign pledges have gained electoral influence. This has prompted expectations that existing business-friendly investment policies could change. Global technology companies consequently have little choice but to monitor potential changes in investment conditions, including project permits, electricity supply and tax incentives.
However, tighter regulation does not immediately mean an end to US investment in AI infrastructure. Demand for data centers to support AI competitiveness remains strong. Rather than a complete halt to new construction, developments could therefore take the form of stricter requirements for site selection, permits and access to electricity.
Uncertainty in Texas, a major destination for global AI data center investment
Texas is one of the regions attracting the most attention in the US data center market.
Texas has attracted data center investment from global technology companies through its relatively extensive land availability, abundant energy resources and business-friendly regulatory environment.
In particular, Texas has a distinctive electricity market structure because of ERCOT, its independent power grid operating system, which is separate from those in other regions. Access to diverse energy resources, including wind, solar and natural gas, is also considered an advantage. These conditions have supported a succession of large investment plans by global companies.
After announcing plans in October 2025 to build a large data center in El Paso, Texas, Meta pursued an increase in the investment. Google has also announced plans to invest $40 billion in Texas by 2027 and build three data centers. These investments help explain why Texas has become a key region for US AI infrastructure investment.
However, as data centers have an increasing impact on local electricity grids and water resources, signs of change are emerging in existing investment promotion policies. Residents are concerned that large data centers could worsen water shortages and raise electricity bills by increasing demand.
As a result, reviewing new data centers' electricity and water use, gathering residents' views and tightening permit conditions are emerging as major policy issues. In particular, longer approval procedures for new data center construction in Texas or tighter related regulations could affect global technology companies' investment schedules.
However, whether Texas will tighten regulation and the actual scope of any suspension of new approvals must be established through official state policies and legislative procedures.
Potential opportunities for South Korea amid US investment uncertainty
As uncertainty grows in the US data center market, some in South Korea expect the country could become an alternative destination for global AI infrastructure investment. South Korea has attributes that could attract global companies, including a competitive semiconductor industry, telecommunications infrastructure, data center operating technology, and construction and equipment installation capabilities. Data center investment and collaboration between global technology companies and South Korean companies are already continuing in the country.
A prominent example is the Ulsan AI data center being developed by SK Group and Amazon Web Services (AWS).
The two companies are developing the AI data center on SK Chemicals land in the Ulsan Mipo National Industrial Complex, backed by a total investment of 7 trillion won. The facility is planned to comprise two buildings with a combined capacity of 103 MW. Building A in the first phase is planned at 41 MW, and Building B in the second phase at 62 MW.
According to the construction information provided, work including new construction and installation of internal equipment is under way at Buildings A and B.
Unlike ordinary buildings, data centers integrate advanced technologies not only in server rooms but also in electricity supply, cooling, communications and fire protection. In particular, electrical equipment, cooling systems, and mechanical, electrical and plumbing (MEP) work are central to a project's competitiveness.
Consequently, an expansion of global data center investment into South Korea could create new business opportunities not only for builders but also for specialist electrical and mechanical installation contractors and related engineering companies. Microsoft is also reportedly pursuing a data center project in Busan, while discussions continue between OpenAI and South Korean companies on large-scale AI infrastructure cooperation.
However, global technology companies do not exclusively opt to build their own facilities in South Korea. They also lease existing data centers or collaborate with local operators. This is why tighter US regulation cannot be assumed to lead directly to increased data center investment in South Korea.
A data center investment slowdown could also affect semiconductor manufacturers and builders
Tighter US regulation would not necessarily be entirely positive for South Korean industry. Delayed data center construction or reduced global AI infrastructure investment could have negative effects across the semiconductor, electrical equipment and construction industries. AI data centers require large quantities of high-performance GPUs and memory chips.
A decline in new data center construction could affect demand for GPUs, high-bandwidth memory (HBM) and server memory. This could also introduce uncertainty into the medium- and long-term investment plans of South Korean semiconductor companies such as Samsung Electronics and SK hynix.
The construction of semiconductor fabrication plants, or fabs, and the development of electricity and water infrastructure are also closely linked to AI industry growth. Ultimately, if weaker US data center investment leads to an investment slowdown across the global AI industry, it could weigh on the semiconductor factory and industrial infrastructure orders anticipated by South Korean builders.
South Korea's data center market is also not free from local opposition and difficulties securing electricity.
Residents continue to oppose data center locations in some parts of the Seoul metropolitan area. Electricity supply, cooling water use, noise and heat emissions are also emerging as major sources of conflict. This is prompting growing calls to view data centers not simply as high-tech industrial facilities but as infrastructure that must coexist with local communities.
Uncertainty for Samsung C&T's US data center expansion strategy
Changes in US data center policy could also affect major South Korean builders that have been preparing to enter overseas AI infrastructure markets. Samsung C&T's construction division is pursuing entry into the US AI infrastructure market through cooperation with Helix, a US data center developer and operator.
According to the materials provided, Samsung C&T signed an agreement in September 2026 to invest $200 million in Helix.
Samsung C&T's strategy is to use its cooperation with Helix to expand beyond hyperscale data center development and operation into AI infrastructure more broadly, including power generation, transmission and distribution.
In particular, the company has reportedly set goals of establishing a mass-production system based on modular data center technology by 2027 and securing opportunities from 2028 to participate in engineering, procurement and construction (EPC) for a very large Texas data center project being pursued by Helix. EPC is a project delivery method that combines engineering, procurement and construction. These moves can be interpreted as efforts by South Korean builders to expand beyond construction alone into data center development, core equipment and power infrastructure.
However, tighter rules on new data center construction in Texas or delays to project permits could affect Samsung C&T's anticipated EPC participation schedule. Large data center projects in particular require land acquisition, power supply agreements and permits in advance, making careful management of project risks arising from local policy changes necessary.
However, tighter regulation does not mean existing projects have been canceled or that Samsung C&T is withdrawing from the business. The actual impact can only be assessed after checking the Helix project's permits, access to electricity and investment schedule.
Site selection and energy access become central to data center competitiveness
The growth of the AI industry has clearly increased demand for data centers. However, competitiveness in the data center market no longer depends solely on how quickly facilities can be built. Reliable electricity supply, access to cooling water, management of conflicts with local communities and minimization of environmental burdens are emerging as key factors determining project success.
Because data centers continuously consume large amounts of electricity, expanding the power grid and securing generation sources are particularly important. Environmental effects must also be considered, including water use and waste heat from cooling and waste generated during construction. Moves to regulate data centers in the United States show that these issues are expanding beyond individual local complaints to become central matters in national industrial and energy policy.
This has significant implications for South Korea's construction industry. To turn a gap in US investment into an opportunity to enter new markets, South Korea must secure competitive data center locations and adequate electricity supply capacity. It must also develop business models that improve local acceptance and minimize environmental impacts. Data centers are core industrial infrastructure in the AI era and a field in which South Korean builders can develop new sources of growth.
However, even large-scale investment will be difficult to sustain without addressing electricity, water and environmental issues.
It remains difficult to determine whether tighter US regulation will create new opportunities for South Korea or instead bring the risk of a contraction in global AI investment. What is clear is that companies with not only construction technology but also the ability to secure energy and achieve environmental sustainability will be competitive in the data center market ahead.
Original Korean article: eanews.kr
English brief by Korea Wind Intelligence, koreawindintel.com
