[Edaily Reporter SOYEON KIM ] Moves in the U.S. to tighten regulations on the construction of artificial intelligence (AI) data centers are creating new uncertainty for the domestic industry. This is because the semiconductor, cooling equipment, power equipment, and battery industries—which have grown on the back of expanded investment in data centers—could be affected. In particular, there are observations that if the construction of new data centers is delayed, it could impact not only orders for new equipment but also demand for semiconductors used in AI servers.

◇ Democrats Tighten Regulations on Data Center Construction… Will the Impact Spread Across the Entire Industry?

According to industry sources on the 5th, in the 120th U.S. Congress, which convenes next January, the Democratic Party will hold the reins in budget deliberations, Senate confirmations, and oversight of the executive branch. Notably, in states such as Georgia and Texas—where many Korean companies have invested heavily—the governors’ party affiliations have changed. Democratic governors pledged during this election to restrict the construction of new data centers or to strengthen operators’ responsibilities. Consequently, discussions are likely to take place regarding the protection of electricity consumers and the principle of cost allocation.

According to the IT trade publication The Information, 34 of the 36 candidates who were elected or held a lead in this week’s gubernatorial elections supported measures to prevent the costs of expanding the power grid due to data center construction from being passed on to ordinary consumers. Among them, candidates in 12 states advocated for a temporary moratorium on the construction of new data centers.

U.S. investment bank Goldman Sachs analyzed that if measures to temporarily suspend new data center construction spread following the Democrats’ victories in state and local elections, approximately 45% of the planned capacity for data center expansion in the U.S. could be affected. This figure represents the potential scale of projects exposed to regulatory risk, rather than the actual volume of construction that would be halted or canceled. Analysts note that even if regulations are short-lived, adjustments to data center groundbreaking and equipment installation schedules could affect the timing of order intake and revenue generation for related companies.

Consequently, the aspect that domestic companies are watching most closely is the pace of AI infrastructure investment by global Big Tech firms. Data centers require transformers, power distribution equipment, and cooling systems during the construction phase, while the operational phase involves AI servers, memory semiconductors, and batteries to ensure a stable power supply. The structure of the industry is such that delays in construction schedules could ripple out across the entire related sector.

Uncertainties regarding demand are coming to the fore in the semiconductor industry, including at SamsungElectronics and SK hynix. This is because if U.S. regulations on data center construction are tightened, Big Tech companies’ server investment schedules are likely to be adjusted. Amid ongoing debates about a “bubble” and profitability concerns stemming from Big Tech companies’ massive AI investments, further tightening of related regulations could increase pressure on Big Tech to slow down its investment pace.

In particular, AI servers are equipped with High Bandwidth Memory (HBM) alongside graphics processing units (GPUs) from companies like NVIDIA, and they also utilize server-grade DRAM and enterprise-grade solid-state drives (SSDs). If the construction of new data centers is delayed and the pace of server adoption slows, this could have some impact on demand for related memory products. An official from the semiconductor industry stated, “Since there have been no immediate direct contract cancellations from data centers and we have established a safety net through long-term supply agreements (LTAs), there shouldn’t be any major issues,” but added, “We are reviewing the medium- to long-term impacts and closely examining the governor’s campaign pledges.”

◇ If U.S. Data Center Construction Slows Down… Impact on Chillers, Power Equipment, and More

This could also affect high-efficiency cooling systems for data centers. As AI server performance improves, heat generation increases, driving up demand for heating, ventilation, and air conditioning (HVAC) products such as chillers and liquid cooling systems. LGELECTRONICS is expanding its AI data center cooling business by securing major supply contracts in North America. If the start of construction on new data centers is delayed, orders for cooling equipment and delivery schedules could be pushed back.

Domestic power equipment manufacturers may also be affected by regulations on data center construction. HD HYUNDAI ELECTRIC signed a long-term supply contract this year with a major U.S. tech company for power and power distribution equipment worth up to 1.1212 trillion won. LS Electric secured a contract to supply data center power distribution equipment worth 168.9 billion won to a major U.S. tech company.

For the battery industry, both opportunities and risks coexist. LG Energy Solution, SAMSUNG SDI CO.,LTD., SK On, and others are expanding the energy storage system (ESS) market. If new data center construction is delayed, it could affect not only orders for associated ESS but also the supply schedules for battery backup units (BBUs) and batteries for uninterruptible power supplies (UPS). On the other hand, investment in ESS to alleviate the burden on the power grid and ensure a stable power supply may actually increase. A battery industry official stated, “With the Democratic Party’s landslide victory, the trend toward strengthening eco-friendly policies is likely to continue, so we are monitoring whether specific regulations will be implemented and any changes in Big Tech’s investment plans.”