South Korea Data Center Market Size
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 1.11 Thousand MW |
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Market Volume (2029) | 2.02 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 12.73 % |
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Fastest Growing by Tier Type | Tier 4 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
South Korea Data Center Market Analysis
The South Korea Data Center Market size is estimated at 1.11 thousand MW in 2024, and is expected to reach 2.02 thousand MW by 2029, growing at a CAGR of 12.73%. Further, the market is expected to generate colocation revenue of USD 1,909.3 Million in 2024 and is projected to reach USD 2,712.6 Million by 2029, growing at a CAGR of 7.28% during the forecast period (2024-2029).
USD 1,909.33 Million
Market Size in 2024
USD 2,712.6 Million
Market Size in 2029
5.5%
CAGR (2017-2023)
7.3%
CAGR (2024-2029)
IT Load Capacity
1,109 MW
Value, IT Load Capacity, 2024
The IT load capacity of the South Korean data center market may grow steadily and reach a capacity of 2,019.1 MW by 2029. The increasing digitization and consumption of media and entertainment in the country create more need of data centers.
Total Raised Floor Space
Sq. Ft. 4.02 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country is expected to reach 5.7 million sq. ft by 2029. The country has been witnessing significant improvements in the capital region of Greater Seoul and in Rest of South Korea.
Installed Racks
201,180
Volume, Installed Racks, 2024
The total number of installed racks is expected to reach 285,816 units by 2029. Greater Seoul is expected to house the maximum number of racks in the coming years.
# of DC Operators & DC Facilities
19 and 69
Volume, DC Facilities, 2024
The data centers in the region are majorly tier 3 facilities with a gradual inclination toward tier 4 DC standards. This transformation will improve the DC performance and reduce the downtime of facilities.
Leading Market Player
33.8%
Market Share, KT Corporation, 2023
KT Corporation is the leading player in the South Korean market. It is projected to continue its leadership. LG CNS, a subsidiary of LG Corporation, is expected to strengthen its market presence with LG Uplus and Jukjeon Data Center.
Tier 3 data center accounted for majority market share in 2023, Tier 4 is the fastest growing segment
- Tier 1 & 2 facilities are losing demand due to their inability to meet the growing uninterrupted business services. An increasing number of global conglomerates are creating business continuity services and gradually shifting priority to tier 3 and 4 data centers.
- Among tier 3 and 4, tier 4 facilities are expected to grow 10x times faster than tier 3 facilities. By the end of 2029, the country's tier 3 and 4 facilities are expected to provide an IT load capacity of 520.43 MW and 1,050.19 MW, respectively. Tier 4 facilities are expected to register a CAGR of 33.54%, whereas tier 3 facilities are expected to register 3.74% during the forecast period.
- Online activity is widespread in South Korea, with over 90% of people using the internet. Users communicate primarily through social media, such as instant messengers, emails, and social networking services. An uninterrupted supply of services is required for such activities, which is only possible with tier 3 and 4 facilities.
- In recent years, the progress of the Korean economy's digital transformation driven by next-generation industries, such as payment technology, AdTech, gaming, and fintech, has created room for a new life in service-based digital companies.
- As a result, the country's demand for digital infrastructure is accelerating, overcoming the obstacles created by domestic businesses over the past three decades with tier 1 & 2 facilities.
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South Korea Data Center Market Trends
Growing smart phone penetration rate above 95% of total population would drive the data centers market in South Korea
- The country has been witnessing a significant drop in population over the years. The country had a population of 51.78 million in 2020, which fell to 51.68 million in 2021. This trend is likely to continue, and the country's population might drop to 51.19 million by 2029.
- Over the years, however, smartphone penetration has been significantly improving. It was 81.6% in 2016 and 92.7% in 2021. This rate is expected to reach 97% by the end of 2029. South Korea ranks at the top for smartphone ownership, with 96% in 2022. The other 4% still have a mobile phone, just not a smartphone. Therefore, in South Korea, smartphone or mobile phone ownership is at 100%.
- A survey conducted by the Gender Ministry found that among 1.3 million students enrolled in the 4th grade and the first years of middle and high school, 25% (1 in 4) are heavily dependent on the internet and their smartphones. In addition, about 50% of South Korean children aged 10-19 were considered overdependent on smartphones in 2021. So, despite the drop in population, the overall growth in smartphone users is offset due to rising smartphone penetration. However, the growth is not so imminent and is almost stagnant, making it an insufficient contributor to the market studied.
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Rising household broadbrand penetration and attractive broadband services by major players such as KT Corp, SK Broadband drives the market
- Following the Korean War, a series of major efforts in the 1970s and 1980s helped rebuild the nation's infrastructure. Telecommunications received special emphasis because the nation still lacked a universal telephone system. Thrunet began providing broadband internet services in July 1998 with approximately 1 Mbps connection speed using cable TV networks. Hanaro Telecom and KT joined the broadband internet provider race through the use of ADSL (Asymmetric Digital Subscriber Line) technology.
- Online stock trading based on the internet has enabled easy stock trading without physically visiting the stock brokerage. Internet banking services enable the withdrawal or transfer of funds without visiting the bank. Because it is so convenient, approximately 11,310,000 users, amounting to about 30% of the total population as of November 2001, were registered users of internet banking.
- The widespread availability of broadband internet services provided the impetus for Korea to become the leading internet stronghold nation of the world. The country has three major ISPs: KT Corp, SK Broadband, and LG Uplus. According to Speedtest by Ookla, the country ranked seventh in terms of broadband speeds, at 104.81 Mbps, as of 2022. However, in the last few years, the country has witnessed a decrease in investments in network infrastructure and slow digital transformation due to revised telecommunication regulations. In May 2020, Korea's National Assembly approved the Content Providers' Traffic Stabilization Law, which requires large content providers to shoulder the responsibility of ensuring reliable access to their content.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- 10,000 TB of video content cosumption per day and increased use of mobile apps drives the market
- Increase for fiber rollout in South Korea is boosting the market demand
- Fastest 4G network and increasing expansion of 5G network services drives the data center market
South Korea Data Center Industry Overview
The South Korea Data Center Market is moderately consolidated, with the top five companies occupying 44.61%. The major players in this market are Equinix Inc., KT Corporation, Naver, SK Broadband and Telstra Corporation Limited (sorted alphabetically).
South Korea Data Center Market Leaders
Equinix Inc.
KT Corporation
Naver
SK Broadband
Telstra Corporation Limited
Other important companies include Digital Edge (Singapore) Holdings Pte Ltd, Digital Realty Trust Inc., Dreammark1, KINX, LG CNS, Lotte Data Communication, Telehouse (KDDI Corporation).
*Disclaimer: Major Players sorted in alphabetical order.
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South Korea Data Center Market News
- November 2022: The company has started the construction of its second data center, Gak Sejong Center, which is built in Sejong City. It is expected to be completed by the end of 2023.
- October 2022: The company entered into a strategic partnership with Zadara, an edge cloud services provider, to provide its zstorage, storage-as-a-service, to the Korean market through KINX's CloudHub.
- January 2022: The company is aiming to open two data centers, SL2x and SL3x, in Seoul which are scheduled to open by 2023 and 2024 respectively. Both of the data centers are expected to provide an IT load capacity of 24MW each.
Free with this Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
South Korea Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
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5.6 Regulatory Framework
- 5.6.1 South Korea
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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6.1 Hotspot
- 6.1.1 Busan
- 6.1.2 Greater Seoul
- 6.1.3 Rest of South Korea
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6.2 Data Center Size
- 6.2.1 Large
- 6.2.2 Massive
- 6.2.3 Medium
- 6.2.4 Mega
- 6.2.5 Small
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6.3 Tier Type
- 6.3.1 Tier 1 and 2
- 6.3.2 Tier 3
- 6.3.3 Tier 4
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6.4 Absorption
- 6.4.1 Non-Utilized
- 6.4.2 Utilized
- 6.4.2.1 By Colocation Type
- 6.4.2.1.1 Hyperscale
- 6.4.2.1.2 Retail
- 6.4.2.1.3 Wholesale
- 6.4.2.2 By End User
- 6.4.2.2.1 BFSI
- 6.4.2.2.2 Cloud
- 6.4.2.2.3 E-Commerce
- 6.4.2.2.4 Government
- 6.4.2.2.5 Manufacturing
- 6.4.2.2.6 Media & Entertainment
- 6.4.2.2.7 Telecom
- 6.4.2.2.8 Other End User
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
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7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 Digital Edge (Singapore) Holdings Pte Ltd
- 7.3.2 Digital Realty Trust Inc.
- 7.3.3 Dreammark1
- 7.3.4 Equinix Inc.
- 7.3.5 KINX
- 7.3.6 KT Corporation
- 7.3.7 LG CNS
- 7.3.8 Lotte Data Communication
- 7.3.9 Naver
- 7.3.10 SK Broadband
- 7.3.11 Telehouse (KDDI Corporation)
- 7.3.12 Telstra Corporation Limited
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, SOUTH KOREA, 2017 - 2029
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), SOUTH KOREA, 2017 - 2029
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, SOUTH KOREA, 2017 - 2029
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, SOUTH KOREA, 2017 - 2029
- Figure 5:
- RACK SPACE UTILIZATION, %, SOUTH KOREA, 2017 - 2029
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, SOUTH KOREA, 2017 - 2029
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, SOUTH KOREA, 2017 - 2029
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, SOUTH KOREA, 2017 - 2029
- Figure 9:
- AVERAGE BROADBAND SPEED, GBPS, SOUTH KOREA, 2017 - 2029
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, SOUTH KOREA, 2017 - 2029
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, SOUTH KOREA, 2017 - 2029
- Figure 12:
- VOLUME OF HOTSPOT, MW, SOUTH KOREA, 2017 - 2029
- Figure 13:
- VOLUME SHARE OF HOTSPOT, %, SOUTH KOREA, 2017 - 2029
- Figure 14:
- VOLUME SIZE OF BUSAN, MW, SOUTH KOREA, 2017 - 2029
- Figure 15:
- VOLUME SHARE OF BUSAN, MW, HOTSPOT, %, SOUTH KOREA, 2017 - 2029
- Figure 16:
- VOLUME SIZE OF GREATER SEOUL, MW, SOUTH KOREA, 2017 - 2029
- Figure 17:
- VOLUME SHARE OF GREATER SEOUL, MW, HOTSPOT, %, SOUTH KOREA, 2017 - 2029
- Figure 18:
- VOLUME SIZE OF REST OF SOUTH KOREA, MW, SOUTH KOREA, 2017 - 2029
- Figure 19:
- VOLUME SHARE OF REST OF SOUTH KOREA, MW, HOTSPOT, %, SOUTH KOREA, 2017 - 2029
- Figure 20:
- VOLUME OF DATA CENTER SIZE, MW, SOUTH KOREA, 2017 - 2029
- Figure 21:
- VOLUME SHARE OF DATA CENTER SIZE, %, SOUTH KOREA, 2017 - 2029
- Figure 22:
- VOLUME SIZE OF LARGE, MW, SOUTH KOREA, 2017 - 2029
- Figure 23:
- VOLUME SIZE OF MASSIVE, MW, SOUTH KOREA, 2017 - 2029
- Figure 24:
- VOLUME SIZE OF MEDIUM, MW, SOUTH KOREA, 2017 - 2029
- Figure 25:
- VOLUME SIZE OF MEGA, MW, SOUTH KOREA, 2017 - 2029
- Figure 26:
- VOLUME SIZE OF SMALL, MW, SOUTH KOREA, 2017 - 2029
- Figure 27:
- VOLUME OF TIER TYPE, MW, SOUTH KOREA, 2017 - 2029
- Figure 28:
- VOLUME SHARE OF TIER TYPE, %, SOUTH KOREA, 2017 - 2029
- Figure 29:
- VOLUME SIZE OF TIER 1 AND 2, MW, SOUTH KOREA, 2017 - 2029
- Figure 30:
- VOLUME SIZE OF TIER 3, MW, SOUTH KOREA, 2017 - 2029
- Figure 31:
- VOLUME SIZE OF TIER 4, MW, SOUTH KOREA, 2017 - 2029
- Figure 32:
- VOLUME OF ABSORPTION, MW, SOUTH KOREA, 2017 - 2029
- Figure 33:
- VOLUME SHARE OF ABSORPTION, %, SOUTH KOREA, 2017 - 2029
- Figure 34:
- VOLUME SIZE OF NON-UTILIZED, MW, SOUTH KOREA, 2017 - 2029
- Figure 35:
- VOLUME OF COLOCATION TYPE, MW, SOUTH KOREA, 2017 - 2029
- Figure 36:
- VOLUME SHARE OF COLOCATION TYPE, %, SOUTH KOREA, 2017 - 2029
- Figure 37:
- VOLUME SIZE OF HYPERSCALE, MW, SOUTH KOREA, 2017 - 2029
- Figure 38:
- VOLUME SIZE OF RETAIL, MW, SOUTH KOREA, 2017 - 2029
- Figure 39:
- VOLUME SIZE OF WHOLESALE, MW, SOUTH KOREA, 2017 - 2029
- Figure 40:
- VOLUME OF END USER, MW, SOUTH KOREA, 2017 - 2029
- Figure 41:
- VOLUME SHARE OF END USER, %, SOUTH KOREA, 2017 - 2029
- Figure 42:
- VOLUME SIZE OF BFSI, MW, SOUTH KOREA, 2017 - 2029
- Figure 43:
- VOLUME SIZE OF CLOUD, MW, SOUTH KOREA, 2017 - 2029
- Figure 44:
- VOLUME SIZE OF E-COMMERCE, MW, SOUTH KOREA, 2017 - 2029
- Figure 45:
- VOLUME SIZE OF GOVERNMENT, MW, SOUTH KOREA, 2017 - 2029
- Figure 46:
- VOLUME SIZE OF MANUFACTURING, MW, SOUTH KOREA, 2017 - 2029
- Figure 47:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, SOUTH KOREA, 2017 - 2029
- Figure 48:
- VOLUME SIZE OF TELECOM, MW, SOUTH KOREA, 2017 - 2029
- Figure 49:
- VOLUME SIZE OF OTHER END USER, MW, SOUTH KOREA, 2017 - 2029
- Figure 50:
- VOLUME SHARE OF MAJOR PLAYERS, %, SOUTH KOREA, 2022
South Korea Data Center Industry Segmentation
Busan, Greater Seoul are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.
- Tier 1 & 2 facilities are losing demand due to their inability to meet the growing uninterrupted business services. An increasing number of global conglomerates are creating business continuity services and gradually shifting priority to tier 3 and 4 data centers.
- Among tier 3 and 4, tier 4 facilities are expected to grow 10x times faster than tier 3 facilities. By the end of 2029, the country's tier 3 and 4 facilities are expected to provide an IT load capacity of 520.43 MW and 1,050.19 MW, respectively. Tier 4 facilities are expected to register a CAGR of 33.54%, whereas tier 3 facilities are expected to register 3.74% during the forecast period.
- Online activity is widespread in South Korea, with over 90% of people using the internet. Users communicate primarily through social media, such as instant messengers, emails, and social networking services. An uninterrupted supply of services is required for such activities, which is only possible with tier 3 and 4 facilities.
- In recent years, the progress of the Korean economy's digital transformation driven by next-generation industries, such as payment technology, AdTech, gaming, and fintech, has created room for a new life in service-based digital companies.
- As a result, the country's demand for digital infrastructure is accelerating, overcoming the obstacles created by domestic businesses over the past three decades with tier 1 & 2 facilities.
| Hotspot | Busan | ||
| Greater Seoul | |||
| Rest of South Korea | |||
| Data Center Size | Large | ||
| Massive | |||
| Medium | |||
| Mega | |||
| Small | |||
| Tier Type | Tier 1 and 2 | ||
| Tier 3 | |||
| Tier 4 | |||
| Absorption | Non-Utilized | ||
| Utilized | By Colocation Type | Hyperscale | |
| Retail | |||
| Wholesale | |||
| Utilized | By End User | BFSI | |
| Cloud | |||
| E-Commerce | |||
| Government | |||
| Manufacturing | |||
| Media & Entertainment | |||
| Telecom | |||
| Other End User |
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Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
| Keyword | Definition |
|---|---|
| Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
| Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
| IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
| Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
| Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
| Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
| Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
| Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
| Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
| Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
| Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
| Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
| Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
| Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
| N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
| N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
| 2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
| In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
| Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
| Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
| Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
| Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
| Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
| Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
| Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
| Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
| Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
| Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
| Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
| Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
| Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
| Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
| Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
| Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
| Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
| Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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