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THE SOUTH KOREA DATA CENTER MARKET SIZE WAS VALUED AT USD 4.44 BILLION IN 2023 AND IS EXPECTED TO REACH USD 7.22 BILLION BY 2029, GROWING AT A CAGR OF 8.43% DURING THE FORECAST PERIOD
The South Korea Data Center Market Report Includes Size in Terms of
- IT Infrastructure: Servers, Storage Systems, and Network Infrastructure
- Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgears, PDUs, and Other Electrical Infrastructure
- Mechanical Infrastructure: Cooling Systems, Rack Cabinets, and Other Mechanical Infrastructure
- Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers & Dry Coolers, Economizers & Evaporative Coolers, and Other Cooling Units
- General Construction: Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Fire Detection & Suppression Systems, Physical Security, and DCIM
- Tier Standard: Tier I & Tier II, Tier III, and Tier IV
- Geography: Seoul and Other Cities
Get Insights on 35 Existing Data Centers and 19 Upcoming Facilities across South Korea
This report includes market data points, ranging from trend
analyses to market estimates & forecasts that you can customize
SOUTH KOREA DATA CENTER MARKET REPORT SCOPE
REPORT ATTRIBUTE | DETAILS |
---|---|
MARKET SIZE (INVESTMENT) | USD 7.22 Billion (2029) |
MARKET SIZE (AREA) | 688 thousand sq. Feet (2029) |
MARKET SIZE (POWER CAPACITY) | 143 MW (2029) |
CAGR INVESTMENT (2023-2029) | 8.43% |
COLOCATION MARKET SIZE (REVENUE) | USD 1.42 Billion (2029) |
HISTORIC YEAR | 2020-2022 |
BASE YEAR | 2023 |
FORECAST YEAR | 2024-2029 |
INDUSTRY OVERVIEW
The South Korea data center market will witness investments of USD 7.22 billion by 2029, growing at a CAGR of 8.43% during the forecast period. South Korea is a prominent Southeast Asian market, with investment opportunities driven by Artificial Intelligence and Renewable Energy initiatives. Major investments from local and international data center providers position the country as a pivotal player in the Asia-Pacific (APAC) digital infrastructure landscape.
A significant increase in data center investments, development of cloud regions, free trade zones, and industrialization strategies by local governments in the country drives the growth of the South Korea data center market. Also, South Korea aims to decrease its reliance on coal-fired power generation to 19.7% by 2030 and lower it to 14.4% by 2036. It targets increasing the share of renewable energy to around 34% of the total energy mix by 2030.
Ranked among the leading colocation markets in Southeast Asia, South Korea boasts key players like LG Uplus, KT Corp, SK Broadband, Digital Reality, ST Telemedia Global Data Center, and more. An increase in investments from global companies in the country is anticipated. Further, in unveiling the 10th basic plan for long-term electricity supply and demand, South Korea outlined its ambitious goal to increase the proportion of renewable energy to 31% and nuclear power to 35% by 2036.
KEY HIGHLIGHTS
- In 2023, South Korea received several investments from global and local data center operators such as SK Ecoplant, Kakao, Naver, Samsung SDS, and Empyrion DC, among others.
- The South Korea data center market is witnessing growth due to significant digitalization, strong fiber connectivity, growing adoption of technologies like AI, and other factors.
- The South Korean government pledged to reverse the previous administration's policy of gradually eliminating nuclear energy—the earlier strategy aimed to decrease the number of operational nuclear plants to 17 by 2034.
- South Korea has around 13 existing submarine cables connecting the MEA and Europe. The country has two upcoming submarine cables expected to go live in 2026.
- Renewable energy is experiencing significant expansion in South Korea. The government actively utilizes abundant renewable resources to achieve its environmental sustainability objectives. In line with this trend, data center operators in the nation are anticipated to adopt renewable energy sources to power their operations.
- Acknowledging the crucial importance of cybersecurity, South Korea has classified it as a matter of national security. Despite boasting one of the swiftest IT infrastructures worldwide, the nation recognizes its vulnerability to cyber threats.
- The nation's Information and Communication Technology (ICT) sector presents considerable potential. Many healthcare, banking, financial services, and telecommunications enterprises are transitioning operational workflows to cloud-based platforms.
WHY SHOULD YOU BUY THIS RESEARCH?
- Market size is available in terms of investment, area, power capacity, and South Korea colocation market revenue.
- An assessment of the data center investment in South Korea by colocation, hyperscale, and enterprise operators.
- Investments in the area (square feet) and power capacity (MW) across cities in the country.
- A detailed study of the existing South Korea data center market landscape, an in-depth market analysis, and insightful predictions about market size during the forecast period.
- Snapshot of existing and upcoming third-party data center facilities in South Korea
- Facilities Covered (Existing): 35
- Facilities Identified (Upcoming): 19
- Coverage: 12+ Cities
- Existing vs. Upcoming (Area)
- Existing vs. Upcoming (IT Load Capacity)
- Data Center Colocation Market in South Korea
- Colocation Market Revenue & Forecast (2023-2029)
- Wholesale vs. Retail Colocation Revenue (2023-2029)
- Retail Colocation Pricing
- Wholesale Colocation Pricing
- The South Korea data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
- A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
- Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
- A transparent research methodology and the analysis of the demand and supply aspects of the industry.
VENDOR LANDSCAPE
- The South Korea data center market has several local and global operators, such as Kakao Corp, KT Corp, Digital Realty, Equinix, and others, who have contributed significantly to the market's growth in recent years.
- The growing opportunities in the market have also prompted several new entrants to invest in the South Korea data center market, including Princeton Digital Group, Pure Data Centers Group, SC Zeus Data Centers, and others. The growing number of investors in the market will further lead to an increase in competitiveness and a reduction in colocation costs in the coming years.
- As the South Korea market is technologically one of the most advanced markets globally, the South Korea data center market in terms of IT infrastructure providers is dominated by the presence of global companies such as Arista Networks, Atos, Cisco Systems, Dell Technologies, and others.
- The support infrastructure provider segment is dominated by the presence of global vendors such as ABB, Caterpillar, Cummins, Rittal, STULZ, and others, leading to the increased availability of efficient infrastructure in the market. The availability of a high number of vendors in the industry has also been benefitting the market in terms of accessibility to affordable infrastructure.
- Several local and global construction contractors operate in the South Korea data center market, such as BEHIVE Architects, DPR Construction, HanmiGlobal, ISG, Samsung C&T, and others. Over the years, they have provided services to multiple data center projects. For instance, Samsung C&T provided construction services for the IGIS Asset Management data center in South Korea.
EXISTING VS. UPCOMING DATA CENTERS
- Existing Facilities in the Region (Area and Power Capacity)
- Seoul
- Other Cities
- List of Upcoming Facilities in the Region (Area and Power Capacity)
- Seoul
- Other Cities
REPORT COVERAGE:
This report analyses the South Korea data center market share. It elaboratively 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:
- IT Infrastructure
- Servers
- Storage Systems
- Network Infrastructure
- Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
- Mechanical Infrastructure
- Cooling Systems
- Rack Cabinets
- Other Mechanical Infrastructure
- Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
- General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression Systems
- Physical Security
- Data Center Infrastructure Management (DCIM)
- Tier Standard
- Tier I & Tier II
- Tier III
- Tier IV
- Geography
- Seoul
- Other Cities
VENDOR LANDSCAPE
- IT Infrastructure Providers: Arista Networks, Atos, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, IBM, Inspur, Intel, Lenovo, NetApp.
- Data Center Construction Contractors & Sub-Contractors: BEHIVE Architects, DPR Construction, GS E&C, HanmiGlobal, Hyundai Engineering & Construction, ISG, POSCO ICT, SAMOO Architects & Engineers, Samsung C&T.
- Support Infrastructure Providers: ABB, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, Legrand, Mitsubishi Electric, Piller Power Systems, Rittal, Rolls-Royce, Schneider Electric, STULZ, Vertiv.
- Data Center Investors: Actis, Digital Realty, Dreammark1, Digital Edge, Equinix, Hostway IDC, Kakao Corp, KT Corp, LG Uplus, LG CNS, Naver, NHN Corp, SOLISIDC, SK Broadband.
- New Entrants: Empyrion DC, ESR, OneAsia Network, Princeton Digital Group, Pure Data Centres Group, SC Zeus Data Centers, ST Telemedia Global Data Centres, STACK Infrastructure.
Frequently Asked Questions
How big is the South Korea data center market?
How many existing and upcoming data center facilities exist in South Korea?
How much MW of power capacity will be added across South Korea during 2024-2029?
What factors are driving the South Korea data center market?
What is the growth rate of the South Korea data center market?
Who are the key investors in the South Korea data center market?
The South Korea data center market size is projected to reach USD 7.22 billion by 2029, growing at a CAGR of 8.43% from 2023 to 2029.
The following factors are likely to contribute to the growth of the South Korea data center market during the forecast period:
- Investments from Cloud Service Providers Gaining Traction
- Artificial Investments Driving Data Center Development
- Implementation of Big Data Services and IoT Driving Data Center Investments
Base Year: 2023
Forecast Year: 2024-2029
The report considers the present scenario of the South Korea data center market and its market dynamics for 2024-2029. It covers a detailed overview of several market growth enablers, restraints, and trends. The study includes the demand and supply aspects of the industry.
The report includes the investment in the following areas:
- IT Infrastructure
- Servers
- Storage Systems
- Network Infrastructure
- Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgears
- PDUs
- Other Electrical Infrastructure
- Mechanical Infrastructure
- Cooling Systems
- Rack Cabinets
- Other Mechanical Infrastructure
- Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers & Dry Coolers
- Economizers & Evaporative Coolers
- Other Cooling Units
- General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Fire Detection & Suppression Systems
- Physical Security
- Data Center Infrastructure Management (DCIM)
- Tier Standard
- Tier I & Tier II
- Tier III
- Tier IV
- Geography
- Seoul
- Other Cities
VENDOR LANDSCAPE
IT Infrastructure Providers
- Arista Networks
- Atos
- Cisco Systems
- Dell Technologies
- Fujitsu
- Hewlett Packard Enterprise
- IBM
- Inspur
- Intel
- Lenovo
- NetApp
Data Center Construction Contractors & Sub-Contractors
- BEHIVE Architects
- DPR Construction
- GS E&C
- HanmiGlobal
- Hyundai Engineering & Construction
- ISG
- POSCO ICT
- SAMOO Architects & Engineers
- Samsung C&T
Support Infrastructure Providers
- ABB
- Caterpillar
- Cummins
- Delta Electronics
- Eaton
- Fuji Electric
- Legrand
- Mitsubishi Electric
- Piller Power Systems
- Rittal
- Rolls-Royce
- Schneider Electric
- STULZ
- Vertiv
Data Center Investors
- Actis
- Digital Realty
- Dreammark1
- Digital Edge
- Equinix
- Hostway IDC
- Kakao Corp
- KT Corp
- LG Uplus
- LG CNS
- Naver
- NHN Corp
- SOLISIDC
- SK Broadband
New Entrants
- Empyrion DC
- ESR
- OneAsia Network
- Princeton Digital Group
- Pure Data Centres Group
- SC Zeus Data Centers
- ST Telemedia Global Data Centres
- STACK Infrastructure
Exhibit 1 South Korea Historical Growth
Exhibit 2 Third-Party Data Centers Snapshot
Exhibit 3 Third-Party Data Center Snapshot by Cities
Exhibit 4 Area Developed by Cities (Thousand Square Feet)
Exhibit 5 Power Capacity by Cities (MW)
Exhibit 6 Data Center Market Size & Forecast by Investment 2020−2029 ($ Million)
Exhibit 7 Data Center Market Size & Forecast by Area 2020−2029 (Thousand Square Feet)
Exhibit 8 Data Center Market Size & Forecast by Power Capacity 2020−2029 (MW)
Exhibit 9 Data Center Colocation Revenue: Market Size & Forecast by 2020−2029 ($ Million)
Exhibit 10 Retail vs Wholesale Colocation Revenue: Market Size & Forecast by 2020−2029 ($ Million)
Exhibit 11 Retail & Wholesale Colocation Pricing
Exhibit 12 Market Size & Forecast by IT Infrastructure 2020−2029 ($ Million)
Exhibit 13 Market Size & Forecast by Electrical Infrastructure 2020−2029 ($ Million)
Exhibit 14 Market Size & Forecast by Mechanical Infrastructure 2020−2029 ($ Million)
Exhibit 15 Market Size & Forecast by Cooling Systems 2020−2029 ($ Million)
Exhibit 16 Market Size & Forecast by General Construction 2020−2029 ($ Million)
Exhibit 17 Market Size & Forecast by Tier Standards 2020−2029 ($ Million)
Exhibit 18 Data Center Market Size & Forecast in Seoul by Investment 2020−2029 ($ Million)
Exhibit 19 Data Center Market Size & Forecast in Seoul by Area 2020−2029 (Thousand Square Feet)
Exhibit 20 Data Center Market Size & Forecast in Seoul by Power Capacity 2020−2029 (MW)
Exhibit 21 Data Center Market Size & Forecast in Other Cities by Investment 2020−2029 ($ Million)
Exhibit 22 Data Center Market Size & Forecast in Other Cities by Area 2020−2029 (Thousand Square Feet)
Exhibit 23 Data Center Market Size & Forecast in Other Cities by Power Capacity 2020−2029 (MW)
LIST OF TABLES
Table 1 List of Upcoming Data Center Projects
Table 2 Data Center Site Selection Criteria
Table 3 Overall Market Size & Forecast 2020−2029
Table 4 Market Size & Forecast by Infrastructure 2020−2029 ($ Million)
Table 5 Market Size & Forecast by IT Infrastructure 2020−2029 ($ Million)
Table 6 Market Size & Forecast by Electrical Infrastructure 2020−2029 ($ Million)
Table 7 Market Size & Forecast by Mechanical Infrastructure 2020−2029 ($ Million)
Table 8 Market Size & Forecast by Cooling Systems 2020−2029 ($ Million)
Table 9 Market Size & Forecast by General Construction 2020−2029 ($ Million)
Table 10 Market Size & Forecast by Tier Standards 2020−2029 ($ Million)
Table 11 Seoul Investment Market Size & Forecast 2020−2029
Table 12 Other Cities Investment Market Size & Forecast 2020−2029
1. Existing & Upcoming Third-Party Data Centers in South Korea
1.1. Historical Market Scenario
1.2. 35+ Unique Data Center Properties
1.3. Data Center IT Load Capacity
1.4. Data Center White Floor Area
1.5. Existing Vs Upcoming Data Center Capacity by Cities
1.6. Cities Covered
1.6.1. Seoul
1.6.2. Other Cities
1.7. List of Upcoming Data Center Projects
2. Investment Opportunities in South Korea
2.1. Microeconomic and Macroeconomic Factors of the South Korea Market
2.2. Investment Opportunities in South Korea
2.3. Government Incentives for Data Centers
2.4. Investment by Area
2.5. Investment by Power Capacity
3. Data Center Colocation Market in South Korea
3.1. Colocation Services Market in the South Korea
3.2. Retail vs Wholesale Data Center Colocation
3.3. Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-on
4. Market Dynamics
4.1. Market Drivers
4.2. Market Trends
4.3. Market Restraints
5. Market Segmentation
5.1. IT Infrastructure: Market Size & Forecast
5.2. Electrical Infrastructure: Market Size & Forecast
5.3. Mechanical Infrastructure: Market Size & Forecast
5.4. Break-up of Construction Cost
5.5. General Construction Services: Market Size & Forecast
6. Tier Standards Investment
6.1. Tier I & II
6.2. Tier III
6.3. Tier IV
7. Geography Segmentation
7.1. Seoul
7.2. Other Cities
8. Key Market Participants
8.1. IT Infrastructure Providers
8.2. Construction Contractors
8.3. Support Infrastructure Providers
8.4. Data Center Investors
8.5. New Entrants
9. Appendix
9.1. Market Derivation
9.2. Quantitative Summary
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Frequently Asked Questions
How big is the South Korea data center market?
How many existing and upcoming data center facilities exist in South Korea?
How much MW of power capacity will be added across South Korea during 2024-2029?
What factors are driving the South Korea data center market?
What is the growth rate of the South Korea data center market?
Who are the key investors in the South Korea data center market?