South Korea Data Center Market - Investment Analysis & Growth Opportunities 2025-2030

SOUTH KOREA DATA CENTER MARKET SIZE OVERVIEW

The South Korea data center market size will witness investments of USD 9.90 billion by 2030, growing at a CAGR of 12.07% during the forecast period.

The growing acceptance of digital platforms, along with increased use of advanced technologies—including IoT, big data, AI, and 5G connectivity—has spurred the South Korean market. For instance, in March 2025, SK Telecom announced the expansion of its AI data center and signed agreements at MWC 2025 with Elice, Giga Computing, and Schneider Electric. The main objective is to provide an AI-ready data center with advanced infrastructure and technology, including modular infrastructure, advanced cooling technology, such as direct-to-chip and immersion cooling solutions, and hyperscale development.

The industrial electricity price in South Korea has increased recently. State utility Korea Electric Power Corp (KEPCO) states that the industrial electricity price has increased by an average of around 10% for large-scale industrial users and by around a 5.2 % increase for small and medium-sized enterprises (SMEs). KEPCO stated that it is necessary to increase the price of power for the expansion of the power grid to fulfill the upcoming power demand through the latest industries, such as semiconductors and artificial intelligence, and to maintain and repair the power grid to prevent grid failure.

South Korea has strong infrastructure, including a reliable network of submarine cables and high-speed internet connectivity. It has around 12 undersea cables that connect China, Japan, Singapore, Malaysia, the Philippines, Taiwan, India, Egypt, the UAE, the UK, Spain, the US, and others. The country is set to host around two upcoming submarine cables, such as Bridge One and Southeast Asia-Japan Cable 2 (SJC2). Furthermore, the South Korean government provides special tax incentives for AI and cloud companies. The government offers around 20% to 30% tax credits on research and workforce development expenses and around 3% to 12% on facility investment costs under the Restriction of Special Tax Treatment Act.

SOUTH KOREA DATA CENTER MARKET KEY HIGHLIGHTS

1. South Korean government plans to increase the use of renewable energy, and the country targets to use around 20% renewable energy by 2030 and around 35% by 2040. In addition, the country aims to achieve carbon neutrality by 2050.
2. In South Korea, government initiatives and the country’s infrastructure fuel AI. In addition, there are around 1,000 AI companies in South Korea that provide AI-related services across the country. For instance, in December 2024, the government of South Korea announced that it had plans to invest around USD 2.9 billion with private sector companies to build a national artificial intelligence (AI) computing center by 2030. Moreover, the government aims to expand AI computing infrastructure, deploy AI technologies, and provide AI training.
3. The government of South Korea has taken several initiatives to skill up the country's people according to the industry demand. For instance, in 2021, the government of South Korea announced that it had launched the K-Digital Platform (KDP) to improve digital skills across the country. This platform works as a bridge between local companies and local governments, and it provides digital lectures to students, working professionals, and job seekers to enhance their digital skills through vocational training programs. In 2021, the KDP platform operated in around 20 locations, and it plans to expand its presence to around 60 locations by 2025.
4. The demand for cloud computing in South Korea witnessed significant growth, creating promising opportunities for cloud investors. This expansion is driven by government initiatives, rising cybersecurity threats, and increased use of digitalization in different sectors and industries. For instance, in March 2024, the South Korean government announced a major plan to invest around USD 91 million in cloud computing to boost the cloud industry in the country.
5. With the development of AI-ready data centers in the market, the demand for liquid cooling solutions is also expected to grow. The Busan Data Center Campus of OneAsia Network, located in Busan, will use immersion cooling technology in the Cooling system, and it is expected to be operational by Q4, 2025.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment area, power capacity, and the South Korea colocation market revenue.
2. An assessment of the data center investment in South Korea by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing South Korea data center market landscape, an in-depth market analysis, and insightful predictions about the South Korea data center market size during the forecast period.
5. Snapshot of existing and upcoming data center facilities in South Korea
6. Facilities Covered (Existing): 43
7. Facilities Identified (Upcoming): 13
8. Coverage: 12+ Cities
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in South Korea
12. Colocation Market Revenue & Forecast (2021-2030)
13. Retail vs Wholesale Colocation Market Revenue & Forecast (2021-2030)
14. Retail & Wholesale Colocation Pricing
15. The South Korea data center landscape market investments are classified into IT, power, cooling, and general construction services, with sizing and forecast.
16. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
17. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
18. A transparent research methodology and the analysis of the demand and supply aspects of the industry.

SOUTH KOREA DATA CENTER MARKET VENDOR ANALYSIS

1. Some of the key colocation data center investors in the South Korea data center market include Equinix, Digital Realty, Telehouse (KDDI), KINX, Hostway, LG CNS, LG Uplus, SK broadband, KT Cloud, Dreammark1 Corporation, Digital Edge, Epoch Digital, and others.
2. In South Korea, multiple real estate and investment firms have entered the South Korea data center market by acquiring local data center operators. For instance, in August 2024, Macquarie Asset Management announced that it had acquired the Hanam Data Centre located in Seoul.
3. The rising demand and significant growth opportunities have led to a huge number of new entrants investing in the South Korea data center market. Some of these new entrants include Empyrion Digital, DCI Data Centers, Macquarie Asset Management, OneAsia Network, ST Telemedia Global Data Centres, and STACK Infrastructure. It will increase the competitiveness of the data center market, and it will also increase the revenue of the data center market.
4. The South Korea data center market has several local and global construction contractors operating in the market, including BEHIVE Architects, DPR Construction, GS E&C, HanmiGloba, Heerim Architects & Planners, Hyundai Engineering & Construction, ISG, POSCO DX, SAMOO Architects & Engineers, Samsung C&T, and Shinhan Architects & Engineers. For instance, in November 2024, Samsung C&T was involved in the construction of a data center in Ansan, Gyeonggi-do, South Korea.
5. The South Korea data center market has the presence of several global support infrastructure providers that will increase the competitiveness in the industry. Some of the support infrastructure vendors present in the South Korea data center market include ABB, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, Legrand, Mitsubishi Electric, Piller Power Systems, Schneider Electric, and Vertiv.

EXISTING VS. UPCOMING DATA CENTERS IN SOUTH KOREA

1. Existing Facilities in the Region (Area and Power Capacity)
2. Seoul
3. Other Cities
4. List of Upcoming Facilities in the Region (Area and Power Capacity)
5. Seoul
6. Other Cities

REPORT COVERAGE:

This report analyses the South Korea data center market share. It elaborately analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Servers
3. Storage Systems
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC & CRAH Units
17. Chiller Units
18. Cooling Towers, Condensers & Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & Commissioning Services
23. Engineering & Building Design
24. Fire Detection & Suppression Systems
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV
31. Geography
32. Seoul
33. Other Cities

SOUTH KOREA DATA CENTER MARKET COMPANIES

1. IT Infrastructure Providers: Arista Networks, Atos, Cisco Systems, Dell Technologies, Fujitsu, Hewlett-Packard Enterprise, IBM, Inspur, Intel, Lenovo, and NetApp.
2. Data Center Construction Contractors & Sub-Contractors: Behive Architects, DPR Construction, GS E&C, HanmiGlobal, Heerim Architects & Planners, Hyundai Engineering & Construction, ISG, POSCO DX, SAMOO Architects & Engineers, Samsung C&T, and Shinhan Architects & Engineers.
3. Support Infrastructure Providers: ABB, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, Legrand, Mitsubishi Electric, Piller Power Systems, Rittal, Rolls-Royce, Schneider Electric, STULZ, and Vertiv.
4. Data Center Investors: Digital Edge, Digital Realty, Dreammark1, Epoch Digital, Equinix, Hostway IDC, KT Corp, LG CNS, LG Uplus, Microsoft, and SK Broadband.
5. New Entrants: Empyrion Digital, DCI Data Centers, Macquarie Asset Management, OneAsia Network, ST Telemedia Global Data Centres, STACK Infrastructure.