Market Size of south korea data center Industry
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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.
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 | |||||||||||||||||
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South Korea Data Center Market Size Summary
The South Korea data center market is experiencing significant growth, driven by the increasing demand for advanced digital infrastructure to support the country's robust online activities and digital transformation. As businesses shift their focus towards tier 3 and 4 data centers, the market is witnessing a transition from tier 1 and 2 facilities, which are unable to meet the demand for uninterrupted business services. This shift is largely due to the rise of next-generation industries such as payment technology, AdTech, gaming, and fintech, which are propelling the need for more reliable and efficient data center solutions. The proliferation of smartphone usage and the high penetration of internet services further underscore the necessity for enhanced data center capabilities to support the growing digital economy.
The market is moderately consolidated, with major players like Equinix Inc., KT Corporation, Naver, SK Broadband, and Telstra Corporation Limited leading the charge. These companies are actively expanding their data center footprints to cater to the increasing demand for colocation services. Despite challenges such as a declining population and regulatory changes affecting telecommunications investments, the market continues to thrive, with significant advancements in broadband infrastructure and internet services. The strategic partnerships and expansions undertaken by key players are indicative of the market's potential for continued growth, as they aim to enhance service offerings and meet the evolving needs of digital businesses in South Korea.
South Korea Data Center Market Size - Table of Contents
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1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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1.1 Hotspot
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1.1.1 Busan
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1.1.2 Greater Seoul
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1.1.3 Rest of South Korea
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1.2 Data Center Size
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1.2.1 Large
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1.2.2 Massive
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1.2.3 Medium
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1.2.4 Mega
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1.2.5 Small
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1.3 Tier Type
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1.3.1 Tier 1 and 2
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1.3.2 Tier 3
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1.3.3 Tier 4
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1.4 Absorption
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1.4.1 Non-Utilized
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1.4.2 Utilized
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1.4.2.1 By Colocation Type
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1.4.2.1.1 Hyperscale
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1.4.2.1.2 Retail
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1.4.2.1.3 Wholesale
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1.4.2.2 By End User
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1.4.2.2.1 BFSI
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1.4.2.2.2 Cloud
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1.4.2.2.3 E-Commerce
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1.4.2.2.4 Government
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1.4.2.2.5 Manufacturing
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1.4.2.2.6 Media & Entertainment
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1.4.2.2.7 Telecom
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1.4.2.2.8 Other End User
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South Korea Data Center Market Size FAQs
What is the current South Korea Data Center Market size?
The South Korea Data Center Market is projected to register a CAGR of 12.73% during the forecast period (2024-2029).
Who are the key players in South Korea Data Center Market?
Equinix Inc., KT Corporation, Naver, SK Broadband and Telstra Corporation Limited are the major companies operating in the South Korea Data Center Market.
