South Korea Data Center Market - Investment Analysis & Growth Opportunities 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.