South Korea Data Center Market - Investment Analysis & Growth Opportunities 2026-2031
Description
The South Korea data center market is expected to grow at a CAGR of 21.50% from 2025 to 2031.
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?
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.
IT Infrastructure Providers
1. How much MW of power capacity will be added across South Korea during 2026-2031?
2. How big is the South Korea data center market?
3. What factors are driving the South Korea data center market?
4. Which all geographies are included in South Korea center market report?
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?
- Market size available in the 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.
- Data center 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 industry analysis, and insightful predictions about the South Korean data center market size during the forecast period.
- Snapshot of existing and upcoming third-party data center facilities in South Korea
- Facilities Covered (Existing): 58
- Facilities Identified (Upcoming): 26
- Coverage: 16+ Locations
- Existing vs. Upcoming (Data Center Area)
- Existing vs. Upcoming (IT Load Capacity)
- Data center colocation market in South Korea
- Colocation Market Revenue & Forecast (2022-2031)
- Retail & Wholesale Colocation Revenue (2022-2031)
- Retail & Wholesale Colocation Pricing
- South Korea data center landscape 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 market.
- 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
- 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
- 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
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.
IT Infrastructure Providers
- Arista Networks
- Atos
- Cisco Systems
- Dell Technologies
- Fujitsu
- Hewlett Packard Enterprise
- IBM
- Inspur Group
- Intel
- Lenovo
- NetApp
- NVIDIA
- 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
- NFD Co.
- 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
- Nortek Data Center Cooling
- 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
- Microsoft
- 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.
- Princeton Digital Group.
1. How much MW of power capacity will be added across South Korea during 2026-2031?
2. How big is the South Korea data center market?
3. What factors are driving the South Korea data center market?
4. Which all geographies are included in South Korea center market report?
Table of Contents
140 Pages
- 1. CHAPTER 1: EXISTING & UPCOMING THIRD-PARTY DATA CENTERS IN SOUTH KOREA
- Data Center Snapshot
- Data Center Snapshot by Cities
- Existing & Upcoming Data Center Supply
- List of Upcoming Data Center Projects in South Korea
- 2. CHAPTER 2: INVESTMENT OPPORTUNITIES IN SOUTH KOREA
- Microeconomic & Macroeconomic Factors for South Korea Market
- Impact of AI in Data Center Industry in South Korea
- Investment Opportunities in South Korea
- Digital Landscape in South Korea
- Government Rules & Regulations for Data Centers
- Government Support for Data Centers
- Market Investment by Area
- Market Investment by Power Capacity
- 3. CHAPTER 3: DATA CENTER COLOCATION MARKET IN SOUTH KOREA
- Colocation Services Market in South Korea
- Retail vs Wholesale Data Center Colocation
- Colocation Pricing (Quarter Rack, Half Rack & Full Rack) & Addons
- 4. CHAPTER 4: MARKET DYNAMICS
- Market Enablers
- Market Trends
- Market Restraints
- 5. CHAPTER 5: MARKET SEGMENTATION
- IT Infrastructure: Market Size & Forecast
- Electrical Infrastructure: Market Size & Forecast
- Mechanical Infrastructure: Market Size & Forecast
- General Construction: Market Size & Forecast
- 6. CHAPTER 6: TIER STANDARDS INVESTMENT
- Tier I & II
- Tier III
- Tier IV
- 7. CHAPTER 7: GEOGRAPHY SEGMENTATION
- Seoul
- Other Cities
- 8. CHAPTER 8: KEY MARKET PARTICIPANTS
- IT Infrastructure Providers
- Construction Contractors & Sub-Contractors
- Support Infrastructure Providers
- Data Center Investors
- New Entrants
- 9. CHAPTER 9: APPENDIX
- Market Derivation
- Site Selection Criteria
- Quantitative Summary
- Abbreviations
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