[Edaily Reporter Kim Hyung-wook ] Efforts to industrialize direct current (DC) power grids—in response to the expansion of artificial intelligence (AI) data centers and renewable energy—are now in full swing.

The Ministry of Climate, Energy and Environment and #KoreaElectricPower (KEPCO) held the “K-DC Industry Expansion 2026” event on the 2nd at the LS Electric Cheonan plant and signed a memorandum of understanding (MOU) to establish a global research complex specializing in DC technology, with the participation of seven power companies and institutions.

Under this agreement, KEPCO and the Korea Energy Technology University will establish a research complex on the university’s campus in Naju, South Jeolla Province, in collaboration with five private companies—LS Electric, LS Cable, HD HYUNDAI ELECTRIC, HYOSUNG HEAVY INDUSTRIES, and LGELECTRONICS—to jointly pursue research and development, demonstration, standardization, certification, and commercialization in the field of direct current (DC) power distribution.

DC power grids are gaining attention as next-generation power infrastructure amid the expansion of AI data centers and renewable energy.

Existing transmission and distribution networks were structured to send high-voltage power from regional power plants to urban centers or industrial complexes, where the voltage was then stepped down using transformers; consequently, these systems have naturally been based primarily on alternating current (AC), which is easier to regulate. However, as the power supply and demand system is shifting toward DC—with solar power generated in various locations, stored in energy storage systems (ESS), and consumed by data center servers and electric vehicle chargers—efforts are underway to transition distribution networks to DC as well. The introduction of DC power grid systems is being considered for projects currently being promoted by the government, such as RE100 industrial complexes and AI data centers.

The LS Electric Cheonan plant, where the event was held, is Korea’s first “DC Factory,” connecting the plant’s solar panels, ESS, and heating, ventilation, and air conditioning (HVAC) and production facilities via a DC distribution network.

KEPCO and other organizations plan to use the results from this pilot project to expand the domestic DC power distribution network while strengthening their foundation for entering overseas markets. The DC power distribution market is growing in North America, the Asia-Pacific region, and Europe, driven by the widespread adoption of AI data centers and electric vehicles. According to a report by Research and Markets, the global DC distribution network market is projected to grow from $17.3 billion in 2023 to $29.5 billion (approximately 46 trillion won) by 2030.

Lee Ho-hyun, Second Vice Minister of Climate, stated, “The DC power grid is a strategic industry being fostered to ensure efficient operation of the national power grid and to advance the power industry,” adding, “The government will actively support everything from initial market creation to technology development and institutional reforms.”

Kim Dong-cheol, President of Korea Electric Power Corporation (KEPCO), said, “It is now time to move beyond research and demonstration and expand into the actual industry and market,” adding, “We will work with the government and industry to identify flagship projects and build a DC industry ecosystem.”