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South Korea Data Center Market Size

The South Korea Data Center Market is experiencing significant growth, driven by the increasing demand for advanced digital infrastructure. The market's expansion is characterized by a shift from tier 1 and 2 facilities to tier 3 and 4 data centers, with tier 4 facilities expected to grow substantially faster. This growth is fueled by the country's digital transformation and the need for uninterrupted services, particularly in sectors like payment technology, AdTech, gaming, and fintech. As a result, the market's capacity and revenue are projected to increase significantly over the forecast period.

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Market Size of south korea data center Industry

South Korea Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 1.11 Thousand MW
svg icon Market Volume (2029) 2.02 Thousand MW
svg icon Largest Share by Tier Type Tier 3
svg icon CAGR (2024 - 2029) 12.73 %
svg icon Fastest Growing by Tier Type Tier 4
svg icon Market Concentration Medium

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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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

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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

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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

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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

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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

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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 Market

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
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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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.

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South Korea Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Busan

      2. 1.1.2 Greater Seoul

      3. 1.1.3 Rest of South Korea

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

South Korea Data Center Market Size FAQs

The South Korea Data Center Market is projected to register a CAGR of 12.73% during the forecast period (2024-2029).

Equinix Inc., KT Corporation, Naver, SK Broadband and Telstra Corporation Limited are the major companies operating in the South Korea Data Center Market.

South Korea Data Center Market Report Snapshots

South Korea Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

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