The South Korea Data Center Market report segments the industry into 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), and Absorption (Non-Utilized, Utilized). Get five years of historical data alongside five-year market forecasts.

The South Korea data center market was valued at USD 4.99 billion in 2024 and is expected to reach USD 9.90 billion by 2030, growing at a CAGR of 12.07% during the forecast period.

South Korea data center market size reached USD 4.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 9.3 Billion by 2033, exhibiting a growth rate (CAGR) of 8.6% during 2025-2033. The increasing demand for cloud computing services is stimulating the market across the country.

IMARC Group provides an analysis of the key trends in each segment of the market, along with the South Korea data center market forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on data center size, tier type, and absorption.

In 2023, the South Korea Data Center Market value is projected to surge to $ 4.27 billion by 2030 at a CAGR of 17.1% from 2024 to 2030

The South Korea Data Center Construction Market report segments the industry into By Infrastructure (By Electrical Infrastructure, By Mechanical Infrastructure, General Construction), By Tier Type (Tier 1 and 2, Tier 3, Tier 4), and By End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Other End Users). Get five years of historical data and market forecasts.

The data center power management industry in Korea is poised to undergo an average compound annual growth rate of 6.5% through 2034. The industry in Korea is standing at the threshold of significant prospects, starting with a valuation of US$ 465.0 million in 2024.

Category-wise insights

Scope of the Report

The South Korea data center colocation market size was valued at USD 800 million in 2023 and is expected to reach USD 1.42 billion by 2029, growing at a CAGR of 10.04%

The South Korea Data Center Rack market report offers a thorough competitive analysis, mapping key players’ strategies, market share, and business models. It provides insights into competitor dynamics, helping companies align their strategies with the current market landscape and future trends.

The report on South Korea Data Center covers a summarized study of several factors supporting market growth, such as market size, market type, major regions, and end-user applications. The report enables customers to recognize key drivers that influence and govern the market.

South Korea Data Center Server Market Report Segments the Industry Into Type (Tier 1, Tier 2, and More), Form Factor(Half-Height Blades, Full-Height Blades, and More), End-User Verticals (BFSI, Manufacturing, and More), Data Center Type(Hyperscalers/Cloud Service Provider, and More) and Application / Workload (Virtualisation and Private Cloud, Storage-Centric and More). The Market Forecasts are Provided in Terms of Value (USD).

Snapshot img

Data Center Power Market Size 2025-2029

The data center power market size is forecast to increase by USD 24.05 billion, at a CAGR of 10.8% between 2024 and 2029.

The market is witnessing significant growth, driven by escalating investments in data centers and high-performance computing (HPC) systems. These investments underscore the increasing reliance on digital infrastructure to support business operations and innovation. However, the market faces a notable challenge in the form of UPS battery failures. This issue, which can lead to costly downtime and data loss, highlights the importance of robust power management systems in data centers. Companies must prioritize preventive maintenance and advanced battery monitoring technologies to mitigate this risk and ensure uninterrupted power supply. In navigating this market, strategic business decisions and operational planning hinge on a deep understanding of these key drivers and challenges. By focusing on power efficiency, resilient infrastructure, and proactive maintenance, organizations can capitalize on the opportunities presented by the expanding data center landscape while effectively managing the risks associated with power management.

What will be the Size of the Data Center Power Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free SampleThe market continues to evolve, with dynamic market trends shaping its landscape. Capacity planning remains a critical focus, as entities strive to optimize energy usage and minimize carbon footprint. Waste heat recovery and thermal management are increasingly important, with applications in various sectors. Data center design incorporates advanced cooling systems, such as free air cooling and liquid cooling, while renewable energy sources and generator sets ensure uninterrupted power supply. Energy efficiency measures, including power factor correction, rectifier systems, and battery banks, are essential for reducing energy waste. UPS systems and remote monitoring enable high availability and fault tolerance. Network infrastructure, including network switches and software-defined networking (SDN), facilitates efficient load balancing and disaster recovery. Cabling infrastructure, including copper cables, fiber optic cables, and structured cabling, plays a crucial role in data center operations. Access control and environmental monitoring ensure physical security and optimal operating conditions. Intelligent PDUs and precision cooling systems further enhance energy efficiency and capacity planning. Market activities unfold continuously, with ongoing developments in green IT, IT infrastructure, and network infrastructure. The integration of renewable energy, modular design, and lifecycle management further enhances the sustainability and efficiency of data centers. The evolving market patterns reflect the industry's commitment to reducing carbon emissions and optimizing energy usage.

How is this Data Center Power Industry segmented?

The data center power industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ProductGeneratorsTransformersUPSTransfer switches and switchgearsOthersEnd-userIT and telecomBFSIEnergyHealthcareRetailServicesDesign & ConsultingIntegration & DeploymentSupport & MaintenanceDesign & ConsultingIntegration & DeploymentSupport & MaintenanceGeographyNorth AmericaUSCanadaEuropeFranceGermanyUKAPACAustraliaChinaIndiaJapanSouth KoreaRest of World (ROW)

By Product Insights

The generators segment is estimated to witness significant growth during the forecast period.Data centers are essential infrastructure for businesses, housing IT infrastructure and network systems that power digital operations. These facilities require robust power systems to ensure high availability and energy efficiency. Power factor correction technology improves the efficiency of power delivery, reducing energy waste and lowering costs. Fire suppression systems protect against potential damage, while green IT initiatives prioritize energy-efficient practices. Network infrastructure, including rectifier systems, battery banks, and UPS systems, support power delivery and ensure uninterrupted operations. Remote monitoring and network virtualization enable real-time management and optimization of power usage. Free air cooling and liquid cooling systems reduce the need for traditional air conditioning, while renewable energy integration and waste heat recovery enhance sustainability. Cloud computing and environmental sensors enable real-time data processing and monitoring, while disaster recovery and load balancing ensure business continuity. Network switches, g

In 2023, the market size of private data centers in South Korea was estimated to be around **** trillion South Korean won. The total size of the private data center market was estimated to be about **** trillion won that year.

The South Korean data center construction market exhibits robust growth, with a market size of XX million (Value Unit) and a Compound Annual Growth Rate (CAGR) of 15.83% during the forecast period (2025-2033). This expansion is fueled by several key drivers. The surge in digital transformation across various sectors, including banking, financial services, insurance (BFSI), IT and telecommunications, and government, necessitates increased data storage and processing capabilities. The increasing adoption of cloud computing, big data analytics, and the Internet of Things (IoT) further fuels demand for advanced data center infrastructure. Furthermore, government initiatives promoting digitalization and technological advancements contribute significantly to market growth. Key trends shaping the market include the rising adoption of sustainable and energy-efficient data center designs, focusing on reduced carbon footprints and optimized power consumption. The integration of advanced technologies like AI and machine learning for improved data center management and automation is also gaining traction. However, restraints include high initial investment costs associated with constructing and maintaining data centers, particularly for higher-tier facilities, and the potential for land scarcity and regulatory hurdles in securing suitable locations for large-scale data center projects. The market is segmented by infrastructure (electrical and mechanical), tier type (Tier 1-4), and end-user sectors. Major players like SAS Institute Inc., Fortis Construction, IBM Corporation, and Schneider Electric SE are actively shaping the market landscape through innovative solutions and strategic partnerships, competing across different segments offering specialized services from general construction to advanced power distribution and cooling systems. The South Korean data center market's segmentation reveals a diverse landscape. Within infrastructure, the demand for robust power distribution solutions (PDUs, transfer switches, switchgear), reliable power backup (UPS, generators), and efficient cooling systems (immersion, direct-to-chip, rear-door heat exchangers) is driving growth. The demand for Tier 3 and Tier 4 data centers, offering higher levels of redundancy and reliability, is increasing rapidly, driven by the needs of large enterprises and critical infrastructure providers. Across end-user segments, BFSI institutions remain significant investors, followed by the IT and telecommunications sector, and a growing government and defense segment. The "Other End Users" category shows potential for future growth, driven by increasing digitalization in various industries. Regional variations within South Korea may exist depending on infrastructure availability, government support, and proximity to key consumer bases. The historical period (2019-2024) data provides a baseline for understanding past growth patterns, which when coupled with the current market dynamics, provides a strong foundation for projecting future market trends and opportunities throughout the forecast period (2025-2033). The competitive landscape is characterized by both international giants and local players, leading to intense competition and continuous innovation within the South Korean data center construction market. Recent developments include: November 2022: Naver Corp., 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., January 2022: Equinix Inc. is aiming to open two hyperscale 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 24 MW each.. Key drivers for this market are: Increased Migration to Cloud-based Business Operations, Rise of Green Data Centers; Government Support in the Form of Tax Incentives for Development of Data Centers. Potential restraints include: Higher Initial Investments and Low Availability of Resources. Notable trends are: Growing Preference for Tier 4 Standard Data Centers.

The South Korea Data Center Processor Market report segments the industry into By Processor Type (GPU, CPU, FPGA, AI Accelerator), By Application (Advanced Data Analytics, AI/ML Training and Inferences, High Performance Computing, Security and Encryption, Network Functions, Others), By Architecture (x86, Non-x86 (ARM, Power and other processors)), and By Data Center Type (Enterprise, Colocation, Cloud Service Providers).

The South Korean data center rack market is experiencing robust growth, driven by the nation's burgeoning digital economy and increasing demand for cloud computing and digital transformation initiatives. The market, valued at approximately $150 million in 2025 (estimated based on provided CAGR and market size), is projected to expand at a compound annual growth rate (CAGR) of 8.40% from 2025 to 2033. This growth is fueled by several key factors, including the expansion of 5G networks, the rise of big data analytics, and the government's continued investment in digital infrastructure. The increasing adoption of hyperscale data centers and edge computing further contributes to the demand for high-quality, reliable data center racks. Market segmentation reveals a strong preference for closed-frame racks due to their enhanced security and environmental control features, while full-rack solutions dominate in terms of size owing to their capacity to accommodate larger IT infrastructure deployments. The IT & Telecommunication sector is the leading end-user segment, followed by the BFSI and Government sectors, reflecting the crucial role of data centers in these industries. Competition is intense, with established players like Delta Power Solutions, Hewlett Packard Enterprise, and Dell Inc. vying for market share alongside regional players. Despite the positive growth outlook, certain challenges exist. Supply chain disruptions and rising raw material costs pose potential constraints on market expansion. Furthermore, increasing adoption of modular data centers and innovative cooling technologies may influence the future demand for traditional rack solutions. However, continuous technological advancements in rack design, such as improved power efficiency and enhanced management capabilities, are likely to mitigate these challenges and support continued market growth. The strategic adoption of energy-efficient racks is gaining traction due to increasing environmental concerns and government regulations. Therefore, manufacturers who can provide sustainable and high-performance rack solutions are poised to benefit significantly. Recent developments include: November 2022: Naver, the DC operator, has started the construction of its second data center, Gak Sejong Center, which was built in Sejong City. It is expected to be completed by the end of 2023., October 2022: KINX entered into a strategic partnership with Zadara, an edge cloud services provider, to provide its storage, storage-as-a-service, to the Korean market through KINX's CloudHub., January 2022: Equinix aimed 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 24 MW each.. Key drivers for this market are: 9.1 Increasing Number of Smartpone Users9.2 Fiber Connectivity Network Expansion in South Korea. Potential restraints include: 10.1 Increasing number of Data Security Breaches10.2 Low Availability of Skilled Workforce. Notable trends are: IT & Telecommunication holds the major share..

South Korea Data Center Cooling comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2025 - 2033.

The South Korea data center construction market presents a compelling investment opportunity, exhibiting robust growth projected to reach $5.19 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 16.18% from 2025 to 2033. This expansion is fueled by several key drivers. The burgeoning digital economy in South Korea, coupled with increasing government initiatives promoting digital transformation and cloud adoption, is significantly increasing demand for modern, high-capacity data centers. Furthermore, the nation's strong technological infrastructure and skilled workforce provide a fertile ground for data center development. Growth is further accelerated by the expansion of e-commerce, the rising adoption of big data analytics, and the increasing reliance on cloud-based services across various sectors, including banking, finance, IT and telecommunications, and government. The market segmentation reveals a significant contribution from electrical infrastructure, including power distribution solutions (PDUs, transfer switches, switchgear) and power backup solutions (UPS, generators). Mechanical infrastructure, encompassing cooling systems and racks, also plays a vital role. Tier 3 and Tier 4 data centers, demanding advanced infrastructure and higher resilience, are projected to witness substantial growth, reflecting a shift towards more sophisticated data center deployments. The competitive landscape is marked by a mix of established domestic players like Samsung C&T Corporation, Hyundai Engineering & Construction, and Dailim Co Ltd, along with other significant contributors. While these companies possess strong market positions, new entrants and innovative solutions, particularly in areas such as sustainable cooling technologies and energy-efficient designs, are expected to influence market dynamics in the coming years. Challenges remain, however, including land scarcity in major urban areas and the need for substantial investment in power grid infrastructure to support the growing demand. Despite these hurdles, the positive growth trajectory is anticipated to continue, driven by the sustained growth of the digital economy and the increasing need for robust data center facilities in South Korea. Recent developments include: July 2023: GIC, a sovereign wealth fund, is in the process of securing funds for a data center located near Seoul, South Korea. The total project is valued at around KRW 900 billion (approximately USD 704.23 million). The Police Mutual Aid Association contributed KRW 30 billion (equivalent to USD 23.4 million) through project financing loans. The data center is slated for completion in 2026, with an estimated three-year construction timeline., June 2023: Empyrion DC commenced construction on its inaugural data center in Seoul's Gangnam district, South Korea. Spanning 30,715 square meters (about 330,615 square feet) and boasting a 40 MW IT load capacity, this nine-story facility is slated for launch in the first half of 2025.. Key drivers for this market are: 4., Increase in Data Center Investments and Availability of Free Trade Zones4.; Rising Demand for Cloud Based Services and Investment in Cloud Computing. Potential restraints include: 4., Increase in Data Center Investments and Availability of Free Trade Zones4.; Rising Demand for Cloud Based Services and Investment in Cloud Computing. Notable trends are: Tier 3 Holds Highest Market Share.

South Korea Data Center Physical Security Market size was valued at USD 42.79 Million in 2024 and is projected to reach USD 189.63 Million by 2032, growing at a CAGR of 20.46% from 2026 to 2032.

South Korea Data Center Physical Security Market: Definition/Overview

Data center physical security refers to the measures and systems established to secure data centers from physical threats, assuring the facility's integrity and safety and the data it stores. This includes a multilayered approach incorporating perimeter security, access control systems, surveillance systems, and intrusion detection systems. Furthermore, physical security applications in data centers are vital for preventing unwanted access, theft, and damage to critical infrastructure, which protects sensitive data and ensures operational continuity.

Snapshot img

Data Center Construction Market Size 2025-2029

The data center construction market size is forecast to increase by USD 41 million, at a CAGR of 8.8% between 2024 and 2029.

The market is experiencing significant growth, driven by the escalating demand for colocation facilities. Businesses increasingly rely on digital transformation and cloud services, leading to an increased need for data center infrastructure. A notable trend in the market is the growing focus on constructing green data centers, as environmental concerns become increasingly important. However, this shift towards sustainability faces a challenge in the form of high power consumption, which remains a significant obstacle in the industry. Despite this, the potential for innovation in energy-efficient technologies presents an opportunity for companies to capitalize on the market's dynamics and navigate challenges effectively. By addressing the energy consumption issue and catering to the rising demand for colocation facilities, market participants can position themselves for success in the evolving data center construction landscape.

What will be the size of the Data Center Construction Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
Request Free Sample

The data center industry is experiencing dynamic shifts, driven by emerging technologies such as the Internet of Things (IoT) and quantum computing. Sustainability is a top priority, with data center consulting firms advocating for green building standards and the adoption of renewable energy. Critical power management and infrastructure management are crucial aspects of data center operations, as are access control and surveillance systems. Data center growth continues to accelerate, fueled by the increasing demand for data processing and storage. HVAC systems are being optimized to improve energy efficiency, while machine learning and artificial intelligence are being integrated to enhance infrastructure management. Meanwhile, data center providers are investing in advanced security measures to mitigate DDoS attacks and data breaches. Fire suppression systems and access control are essential components of these security strategies. Data center analytics are also gaining traction, enabling providers to monitor and optimize their operations in real-time. 5G networks are poised to revolutionize the data center industry, offering faster connectivity and lower latency. Data center software and solutions are being developed to support this new infrastructure, while data center trends indicate a shift towards more decentralized and modular designs. Overall, the data center industry is at the forefront of technological innovation, driven by the need for efficient, secure, and sustainable data processing and storage solutions.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. ApplicationEnterpriseCloudColocationHyperscaleTypeElectrical constructionMechanical constructionGeneral constructionVerticalIT & TelecomBFSIGovernment & DefenseHealthcareEnergyOthersIT & TelecomBFSIGovernment & DefenseHealthcareEnergyOthersGeographyNorth AmericaUSCanadaEuropeFranceGermanyItalyUKAPACChinaJapanSouth KoreaSouth AmericaBrazilRest of World (ROW)

By Application Insights

The enterprise segment is estimated to witness significant growth during the forecast period.

The data center market is experiencing significant growth due to the increasing volume of business data traffic. To accommodate this data, there is a pressing need to expand data center infrastructure. Many applications generate large amounts of structured and unstructured data, some of which are stored on-premises and some in data centers. High-performance computing systems are increasingly being adopted by enterprises to enhance application performance. These systems facilitate the extensive transformation of existing data center infrastructure, including network, cooling, and storage. Data center design and optimization are crucial aspects of this transformation. Remote monitoring and automation enable efficient management of data centers, ensuring compliance with PCI DSS and other regulations. Tier rating provides a standardized framework for assessing data center reliability. Managed services and colocation offerings allow businesses to outsource data center management and reduce capital expenditure. Capacity utilization and disaster recovery are essential considerations for businesses, ensuring data availability and business continuity. Ethernet switching, power distribution units, precision air conditioning, and cooling systems are int

The South Korea Data Center Power Market report segments the industry into Power Infrastructure (Electrical Solution, Service) and End-User (IT & Telecommunication, BFSI, Government, Media & Entertainment, Other End-User). Get five years of historical data alongside five-year market forecasts.