South Korea data center market to reach $7.23 billion by 2029

South Korea data center market is expected to reach a value of $7.23 billion by 2029 from $4.45 billion in 2023, growing at a CAGR of 8.4% grow at a CAGR of 8.43% from 2023-2029, according to Research and Markets.

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 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.

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, and the growing adoption of technologies like AI, among 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 13 existing submarine cables connecting the MEA and Europe. Two new cables are 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 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.

Research and Markets