Chicago, June 20, 2022 (GLOBE NEWSWIRE) — According to Arizton’s latest research report, the data center market in South Korea is expected to grow at a CAGR of 6.71% over the period 2022-2027. The government’s growing support and initiatives for the development of data centers will attract new investors to the country. The high adoption of artificial intelligence by the government and other organizations is one of the major factors driving the growth of the market.
Scope of the South Korea Data Center Market Report
|MARKET SIZE (2027)||$5.8 billion|
|MARKET SIZE (2021)||$3.9 billion|
|MARKET SIZE (AREA)||348 square thousand. Feet (2027)|
|MARKET SIZE (ELECTRIC POWER)||80MW (2027)|
|COLOCATION MARKET SIZE (REVENUES)||$1,000 million (2027)|
|YEAR OF REFERENCE||2021|
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- South Korea is in the Northeast Asia Economic Zone and has strong trade connectivity with major Asian countries. Seoul is the primary site for data center development, with more than 15 data center facilities contributing approximately 50% of existing third-party data center capacity in South Korea.
- Telecom, cloud, healthcare, BFSI, automotive, gaming, logistics and education are some of the industry verticals in South Korea driving the demand for data centers in Korea from South.
- South Korea has the presence of global cloud service providers such as Amazon Web Services (AWS), Microsoft, Google, Oracle, and Tencent. Some of the local cloud service providers in the country include KT, LG CNS, and SK C&C.
- The data center market in South Korea has seen several investments through joint ventures; for example, in April 2022, Digital Edge and SK ecoplant signed a memorandum of understanding (MOU) to develop a data center in Incheon, South Korea.
- The country has the presence of several free economic zones such as Incheon FEZ, Busan-Jinhae FEZ, Gwangyang Bay Area FEZ, Chungbuk FEZ and Saemangeum-Gunsan FEZ which will drive data center investment in the country in the coming years.
- The South Korean government aims to generate around 35% of energy from renewable energy sources by 2040 in the country. Data center service providers such as NAVER, Equinix, and Digital Realty use renewable energy to power their data center operations.
South Korea Data Center Market Growth Drivers
- The South Korean data center market is one of the rapidly emerging markets in APAC, with growing investment from global cloud service providers such as AWS, Microsoft, Alibaba and Google.
- Several startups in the country are using big data solutions to change their business operations. For example, Coupang, an e-commerce company based in South Korea, uses big data analytics for its e-commerce platform.
- The growth of joint ventures will attract foreign investment to the country and attract other investors to invest in data centers. The joint ventures will further create revenue opportunities for local suppliers and operators through investments from global companies. Joint ventures also encourage global brands to increase their presence in the country and maintain brand reputation, local market knowledge and local operations.
Type of infrastructure
- Informatique infrastructure
- Electrical infrastructure
- Mechanical infrastructure
- General construction
- Uninterruptible power supply (UPS)
- Transfer Switches and Switchgears
- Other electrical infrastructure
- Cooling systems
- Other mechanical infrastructure
- Core and shell development
- Installation and commissioning services
- Building design
- Physical security
- Level I and Level II
- Level III
- Level IV
IT infrastructure providers
- Arista Networks
- Cisco Systems
- Dell Technologies
- Hewlett Packard Enterprise (HPE)
Data Center Construction Contractors and Subcontractors
- CMA Construction
- GS E&C
- Hyundai Engineering and Construction
- POSCO ICT
- SAMOO Architects & Engineers
- Samsung C&T
Support infrastructure providers
- Delta Electronics
- Fuji Electric
- Electric Mitsubishi
- Piller Power Systems
- Rolls Royce
Data center investors
- Digital real estate
- Kakao Corp.
- KT Corp
- LG Uplus
- NAVER Corp.
- RHN Corp
- Princeton Digital Group (CEO)
- Pure Data Centers
- Samsung MSDS
- SC Zeus Data Centers
- Broadband SK
- ST Telemedia Global Data Centers
Explore our data center knowledge base profile to learn more about the industry.
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