The South Korea Data Center Market Size, Share, Trends, & Investments By IT Infrastructure, By Electrical Infrastructure, By Mechanical Infrastructure, By Cooling Systems, By General Construction, By Tier Standard & By Geography.

South Korea Data Center Market - Investment Analysis & Growth Opportunities 2026-2031

SOUTH KOREA DATA CENTER MARKET SIZE & OUTLOOK

THE South Korea data center market size was valued at USD 5.04 billion in 2025 and is expected to reach USD 16.23 billion by 2031, growing at a CAGR of 21.50% during the forecast period. South Korea is one of the emerging data center hubs in the APAC region that is experiencing rapid data center development year-on-year, driven by several growth factors, such as, surge in adoption of artificial intelligence, growing digitalization, the demand for technologies like big data, Internet of Things, and cloud computing, surge in adoption of sustainability measures by data center operators, increasing inland and submarine connectivity, and other factors.

Several data center firms prioritize to develop data centers in Seoul in South Korea, but the city is currently facing significant power scarcity challenges, because of which the government of South Korea has issued strict orders to decentralize data center development from Seoul to other locations of the country, such as Ansan, Busan, Cheonan, Daejeon, Gimhae, Goyang, Incheon, Seongnam, and others since 2024. Therefore, these cities in South Korea are also gaining momentum for the development of data centers in recent years.

The enforcement of the Personal Information Protection Act (PIPA) in South Korea is further accelerating data center investments in the country as customers prioritize strict data sovereignty and compliance with stringent privacy standards. The law regulates cross-border transactions, and it also establishes rules for the companies to obtain legal consent from data owners and to ensure that the nation that is receiving the data must guarantee required data protection. The companies should also get approval from the Personal Information Protection Commission while transferring data from the home country to other nations to boost sovereignty and data security.

The global cloud giants like Amazon Web Services, Microsoft, and Tencent are continuously investing in South Korea to expand their service offerings in the nation. These firms are increasingly focusing on driving the country’s artificial intelligence infrastructure with various initiatives. For example, in October 2025, Amazon Web Services planned to develop new Artificial Intelligence-ready data centers across Incheon and Gyeonggi in South Korea with an investment of around $5 billion to address the growing demand for processing Artificial Intelligence workloads in the country.

Investments in renewable energy partnerships and Power Purchase Agreements (PPAs) are increasing significantly among data center operators in South Korea. Additionally, the government of South Korea is also making substantial efforts to promote sustainability across the nation to reduce its environmental impact. In February 2025, the Ministry of Trade, Industry, and Energy in South Korea planned to enhance nuclear power generation in the country with an investment of approximately USD 103.1 million.

SOUTH KOREA DATA CENTER MARKET - KEY HIGHLIGHTS

South Korea consists of approximately 58 operational colocation data centers, of which around 32 facilities are in Seoul alone. Most of these facilities have been designed to meet the Tier III standards of the Uptime Institute.

Several data center firms in South Korea are increasingly investing in developing AI-ready data center facilities, which are equipped with clusters of Graphics Processing Units, liquid cooling technologies, high-density racks, and increased power capacities. For example, in September 2025, Amazon Web Services partnered with SK Group to develop a South Korean data center facility that can host approximately 60 thousand Graphics Processing Units.

The average cost of developing a data center in South Korea ranges between $10-$11 million per MW, which is comparatively lower than several APAC nations like Singapore, Australia, Japan, and others.

In South Korea, the Korea Data Center Council (KDCC) is a primary association that governs data center development in the country by working in collaboration with the nation’s Ministry of Science and ICT to introduce regulations for the data center industry. This association also issues the data center facilities with KDCC Green Data Center Certification to encourage data center firms to build environmentally friendly data centers across the nation.

As South Korea is experiencing substantial demand for artificial intelligence technologies, the artificial intelligence service providers are increasingly investing to expand their operations to address the growing demand for artificial intelligence in the country. For example, in October 2025, OpenAI, an artificial intelligence service provider partnered with Hitachi Energy to procure electrical infrastructure equipment to develop OpenAI’s artificial intelligence data center in South Korea.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and 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 industry analysis, and insightful predictions about the South Korean data center market size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in South Korea
6. Facilities Covered (Existing): 58
7. Facilities Identified (Upcoming): 26
8. Coverage: 16+ Locations
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 (2022-2031)
13. Retail & Wholesale Colocation Revenue (2022-2031)
14. Retail & Wholesale Colocation Pricing
15. 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 market.

SOUTH KOREA DATA CENTER MARKET VENDOR LANDSCAPE

In South Korea, the colocation companies are the major contributors to driving data center investments. Some of the prominent colocation companies operating in South Korea include Equinix, Telehouse, KINX Inc, LG CNS, LG Uplus, Hostway, KT Corp., Macquarie Group, SK Broadband, Digital Edge DC, Digital Realty, among others.

The country also hosts major cloud service providers such as Alibaba Group, Amazon Web Services, Google, Microsoft, Oracle, and Tencent that operate multiple cloud regions across Seoul, Busan, and Chuncheon. The cloud market in South Korea is expected to continue experiencing significant growth in the future. For instance, in June 2025, Alibaba Group planned to develop its second South Korean data center to expand the country’s cloud computing infrastructure.

The data center operators increasingly rely on IT infrastructure providers to procure servers, storage systems, and networking equipment. Some of the prominent IT infrastructure providers in the country include Arista Networks, Cisco, Dell Technologies, Hewlett Packard Enterprise, IBM, Lenovo, and NVIDIA.

Companies like ADIK, DL E&C, DPR Construction, GS E&C, Heerim Architects & Planners, Hyundai Engineering & Construction, Junglim Architecture, SAMOO Architects & Engineers, Shinhan Architects & Engineers, and others offer a wide range of construction, installation, commissioning, and engineering services for the construction of data centers in South Korea.

South Korea is experiencing the entry of multiple new entrants as the demand for digital infrastructure is increasing significantly in the country. Some of the new entrants include DCI Data Centers, FIR HILLS, Inuverse, KORAMCO Asset Management, THOMSON Computing – METAVISIO, OneAsia Network, ST Telemedia Global Data Centres, STACK Infrastructure, Princeton Digital Group and others.

EXISTING VS. UPCOMING DATA CENTERS

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, cooling systems, general construction, and Tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Server Infrastructure
3. Storage Infrastructure
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. 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 and CRAH
17. Chillers
18. Cooling Towers, Condensers and Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & commissioning Services
23. Building & Engineering 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

VENDOR LANDSCAPE

1. IT INFRASTRUCTURE PROVIDERS: Arista Networks, Atos, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, IBM, Inspur Group, Intel, Lenovo, NetApp, and NVIDIA
2. DATA CENTER CONSTRUCTION CONTRACTORS & SUB-CONTRACTORS: ADIK, BEHIVE Architects, DL E&C, DPR Construction, GS E&C, Hanwha Corporation E&C Division, HanmiGlobal, Heerim Architects & Planners, Hyundai Engineering & Construction, ISG, Junglim Architecture, POSCO E&C, SAMOO Architects & Engineers, Samsung C&T, Shinhan Architects & Engineers, and NFD Co.
3. SUPPORT INFRASTRUCTURE PROVIDERS: 3M, ABB, Aksa Power Generation, Alfa Laval, Asetek, Baudouin, Carrier, Caterpillar, Cummins, Danfoss, Delta Electronics, Eaton, Fuji Electric, GE Vernova, Hitachi Energy, Honeywell, Legrand, Mitsubishi Electric, Piller Power Systems, Rehlko, Riello Elettronica Group, Rittal, Rolls Royce, Schneider Electric, STULZ, Toshiba, Vertiv, ENGIE, and Nortek Data Center Cooling.
4. DATA CENTER INVESTORS: Amazon Web Services, Digital Edge DC, Digital Realty, Dreammark1, Empyrion Digital, Epoch Digital, Equinix, Hostway, KT Corp, LG CNS, LG Uplus, LOTTE Innovate, Macquarie Group, Samsung SDS, SK Broadband, SK ecoplant, and Microsoft.
5. NEW ENTRANTS: DCI Data Centers, FIR HILLS, IGIS Asset Management, Inuverse, KORAMCO Asset Management, KOSCOM, LG Electronics, THOMSON Computing – METAVISIO, OKESTRO Co., OneAsia Network, ST Telemedia Global Data Centres, STACK Infrastructure, DC Connects Co., and Princeton Digital Group.