Press release
South Korea Data Center Market to Reach USD 16.23 Billion by 2031, Driven by Rising AI Adoption Across the Digital Economy | Arizton
South Korea Data Center Market Insights by Arizton
The South Korea data center market [https://www.arizton.com/market-reports/south-korea-data-center-market-investment-analysis] was valued at USD 5.04 billion in 2025 and is projected to reach USD 16.23 billion by 2031, expanding at a robust 21.5% CAGR during the forecast period according to Arizton latest research. The market is scaling rapidly as AI adoption, cloud computing, big data, IoT, and sustainability-driven infrastructure investments accelerate nationwide.
While Seoul remains the primary demand hub, power constraints and government-led decentralization since 2024 are pushing new developments into secondary cities such as Incheon, Busan, Daejeon, and Goyang. At the same time, stricter data sovereignty requirements under the Personal Information Protection Act (PIPA) are reinforcing domestic data center investments.
Hyperscalers including Amazon Web Services, Microsoft, and Tencent are deepening their presence, particularly with AI-ready facilities. Parallelly, renewable PPAs and government-backed energy initiatives, led by the Ministry of Trade, Industry, and Energy, are shaping a more sustainable, future-ready data center ecosystem.
Explore the Full Market Insights: [https://www.arizton.com/market-reports/south-korea-data-center-market-investment-analysis]
Report Summary:
MARKET SIZE (INVESTMENT): USD 16.23 Billion (2031)
MARKET SIZE (AREA): 1,480 Thousand Sq. feet (2031)
MARKET SIZE (POWER CAPACITY): 370 MW (2031)
CAGR - INVESTMENT (2025-2031): 21.50%
COLOCATION MARKET SIZE (REVENUE): USD 3.49 Billion (2031)
HISTORIC YEAR: 2022-2024
BASE YEAR: 2025
FORECAST YEAR: 2026-2031
Investment by Area: Industrial Land Trends Across South Korea
Industrial land pricing in South Korea varies sharply by city, reflecting uneven infrastructure density and demand concentration. In 2025, land prices ranged from USD 3,590-12,565 per sq. m in Seoul, compared with USD 1,130-11,600 in Seongnam and USD 1,820-10,380 in Incheon, making peripheral markets increasingly attractive for large-scale data center development. As colocation and hyperscale operators continue to invest aggressively, demand for industrial land is rising, putting sustained upward pressure on prices nationwide. This trend is reinforced by South Korea's expanding network of free economic zones, offering tax incentives, affordable land leasing, simplified regulations, and strong logistics, which is supporting greenfield data center projects. However, as land costs escalate, the area required per MW is expected to decline over the next three to five years, pushing developers toward more space-efficient, higher-density facility designs.
AI Adoption Scales Across South Korea's Digital Economy
The adoption of artificial intelligence (AI) in South Korea is accelerating across multiple sectors, supported by the country's advanced digital infrastructure and strong focus on technological innovation. AI is playing an increasingly critical role in driving digital transformation across industries such as manufacturing, automotive, healthcare, and finance, as enterprises integrate intelligent systems to improve operational efficiency, streamline processes, and enable data-driven innovation. To support this expansion, South Korea is actively strengthening its AI ecosystem through initiatives focused on developing AI-ready data centers, increasing government support, and encouraging AI adoption across key industries to enhance long-term sustainability. As AI workloads generate massive volumes of data, demand for high-performance servers with greater rack density and power efficiency is rising, leading to higher heat output within data centers
Clean Energy Investment Accelerates South Korea's Power Market Transition
South Korea is advancing a structured energy transition agenda aimed at increasing the share of renewable electricity to 20% by 2030 and around 35% by 2040, while working toward carbon neutrality by 2050. To support these long-term targets, the government announced an investment of approximately USD 89.5 million in energy-sector R&D in February 2025, with early funding directed toward 41 projects focused on renewable energy, nuclear power, hydrogen, and related technologies. This policy-led approach highlights South Korea's commitment to strengthening green energy production while building a resilient and sustainable power ecosystem.
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Vendor Landscape
IT Infrastructure Providers
* Arista Networks
* Atos
* Cisco Systems
* Dell Technologies
* Fujitsu
* Hewlett Packard Enterprise
* IBM
* Inspur Group
* Intel
* Lenovo
* NetApp
* NVIDIA
Data Center Construction Contractors & Sub-Contractors
* ADIK
* BEHIVE Architects
* DL E&C
* DPR Construction
* GS E&C
* Hanwha Corporation E&C Division
* HanmiGlobal
* Heerim Architects & Planners
* Hyundai Engineering & Construction
* ISG
* Junglim Architecture
* POSCO E&C
* SAMOO Architects & Engineers
* Samsung C&T
* Shinhan Architects & Engineers
* NFD Co.
Support Infrastructure Providers
* 3M
* ABB
* Aksa Power Generation
* Alfa Laval
* Asetek
* Baudouin
* Carrier
* Caterpillar
* Cummins
* Danfoss
* Delta Electronics
* Eaton
* Fuji Electric
* GE Vernova
* Hitachi Energy
* Honeywell
* Legrand
* Mitsubishi Electric
* Piller Power Systems
* Rehlko
* Riello Elettronica Group
* Rittal
* Rolls Royce
* Schneider Electric
* STULZ
* Toshiba
* Vertiv
* ENGIE
* Nortek Data Center Cooling
Data Center Investors
* Amazon Web Services
* Digital Edge DC
* Digital Realty
* Dreammark1
* Empyrion Digital
* Epoch Digital
* Equinix
* Hostway
* KT Corp
* LG CNS
* LG Uplus
* LOTTE Innovate
* Macquarie Group
* Samsung SDS
* SK Broadband
* SK ecoplant
* Microsoft
New Entrants
* DCI Data Centers
* FIR HILLS
* IGIS Asset Management
* Inuverse
* KORAMCO Asset Management
* KOSCOM
* LG Electronics
* THOMSON Computing - METAVISIO
* OKESTRO Co.
* OneAsia Network
* ST Telemedia Global Data Centres
* STACK Infrastructure
* DC Connects Co.
* Princeton Digital Group.
The South Korea Data Center Market Report Includes Size in Terms of
* IT Infrastructure: Servers, Storage Systems, and Network Infrastructure
* Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgears, PDUs, and Other Electrical Infrastructure
* Mechanical Infrastructure: Cooling Systems, Rack Cabinets, and Other Mechanical Infrastructure
* Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers & Dry Coolers, and Other Cooling Units
* General Construction: Core & Shell Development, Installation & Commissioning Services, Engineering & Building Design, Fire Detection & Suppression Systems, Physical Security, and Data Center Infrastructure Management (DCIM)
* Tier Standard: Tier I & Tier II, Tier III, and Tier IV
* Geography: Seoul and Other Cities
Related Reports That May Align with Your Business Needs
India Data Center Market - Investment Analysis & Growth Opportunities 2026-2031
https://www.arizton.com/market-reports/data-center-market-in-india-2026
Hong Kong Data Center Market - Investment Analysis & Growth Opportunities 2026-2031
https://www.arizton.com/market-reports/hong-kong-data-center-market-size-analysis
What Key Findings Will Our Research Analysis Reveal?
* How much MW of power capacity will be added across South Korea during 2026-2031?
* How big is the South Korea data center market?
* What factors are driving the South Korea data center market?
* Which all geographies are included in South Korea center market report?
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About Us:
Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.
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