The South Korea Data Center Market Report is Segmented by Data Center Size (Large, Massive, Medium, Mega, and Small), Tier Type (Tier 1 and 2, Tier 3, and Tier 4), Data Center Type (Hyperscale/Self-Built, Enterprise/Edge, and Colocation), End User (BFSI, IT and ITES, E-Commerce, Government, Manufacturing, Media and Entertainment, and More), and Hotspot. The Market Forecasts are Provided in Terms of IT Load Capacity (MW).

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.

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).

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.

South Korea Hyperscale Data Center Market is Segmented by Data Center Type (Hyperscale Self-Build, Hyperscale Colocation), Component (IT Infrastructure, Electrical Infrastructure, and More), Tier Standard (Tier III, Tier IV), End-User Industry (Cloud and IT Services, Telecom, and More), Data Center Size (Large ≤25 MW, and More). The Market Size and Forecasts are Provided in Terms of Value (USD Million).

South Korea Data Center Market size was valued at $ 13.3 Bn in 2024 and is expected to reach $ 24.3 Bn by 2032, growing at a CAGR of 6% from 2026 to 2032South Korea Data Center Market: Definition/OverviewA data center is a dedicated facility that houses computer systems and their components, such as servers, storage systems, networking equipment, and security systems. It acts as the foundation for storing, processing, and distributing large amounts of data for businesses, governments, and service providers. Modern data centers are outfitted with redundant power supplies, high-speed internet connectivity, and advanced cooling systems to ensure continuous operation and maximum uptime.

The South Korea Data Center Cooling Market report segments the industry into By Cooling Technology (Air-based Cooling, Liquid-based Cooling), By Type (Hyperscalers (Owned and Leased), Enterprise (On-premise), Colocation), By End-user Vertical (IT and Telecom, Retail and Consumer Goods, Healthcare, Media and Entertainment, Federal and Institutional Agencies, Other End-user Verticals).

Discover the booming South Korea data center physical security market! This report reveals a $29.38M market in 2025, projected to grow at a 20.91% CAGR until 2033, driven by cloud adoption & stringent data regulations. Learn about key players, market trends, and growth opportunities in video surveillance, access control, and more. Recent developments include: February 2024: In the latest release of the Axis operating system, AXIS OS, Axis Communications AB announced that the IEEE MAC 802.1sec security standard supports more than 200 network devices, including cameras, intercoms, and 11.8 audio speakers. Demonstrating the company's continued commitment to device and data security, Axis has become the first manufacturer of physical safety products supporting MACsec Media Access Control Security., April 2023: Schneider Electric launched a new services offer, EcoCare for Modular Data Centers services membership. Members of this innovative service plan benefit from specialized expertise to maximize modular data centers' uptime with 24/7 proactive remote monitoring and condition-based maintenance. Members also benefit from support provided in the form of a dedicated customer success management team, who become their coach, planning on-site and remote services teams and monitoring maintenance and infrastructure needs at a system level rather than an ad hoc approach for each asset only when problems arise.. Key drivers for this market are: Increasing Data Traffic and Need for Secured Connectivity are Promoting the Growth of the Data Center Physical Security Market, Rise in Cyber Threats is Causing the Data Center Physical Security Market to Grow. Potential restraints include: Increasing Data Traffic and Need for Secured Connectivity are Promoting the Growth of the Data Center Physical Security Market, Rise in Cyber Threats is Causing the Data Center Physical Security Market to Grow. Notable trends are: The Video Surveillance Segment Holds a Significant Share in the Market.

The size of the South Korea Data Center market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 10.00% during the forecast period. Recent developments include: November 2022: The company 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.October 2022: The company entered into a strategic partnership with Zadara, an edge cloud services provider, to provide its zstorage, storage-as-a-service, to the Korean market through KINX's CloudHub.January 2022: The company is aiming 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 24MW each.. Key drivers for this market are: Increasing Awareness of Energy Consumption Control. Potential restraints include: High Risk Associated with Data. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The South Korean data center power market exhibits robust growth potential, driven by the increasing adoption of cloud computing, the expansion of 5G networks, and the rising demand for digital services across various sectors. The market, valued at approximately $830 million in 2025, is projected to experience a compound annual growth rate (CAGR) of 13.83% from 2025 to 2033. This growth is fueled by significant investments in IT infrastructure by organizations in sectors such as IT & Telecommunications, BFSI (Banking, Financial Services, and Insurance), and the government. The power infrastructure segment, encompassing UPS systems, generators, and power distribution solutions, constitutes a major portion of the market, reflecting the critical need for reliable and efficient power supply within data centers. Furthermore, the growing demand for robust service and maintenance contracts contributes to the market's expansion. Competition is intense, with key players including global giants like Fujitsu, Caterpillar, ABB, and Schneider Electric alongside local providers, leading to innovation in energy-efficient solutions and enhanced service offerings. While the market enjoys considerable momentum, certain factors could potentially restrain growth. These include the relatively high initial investment costs associated with implementing advanced power infrastructure solutions and the ongoing need for skilled professionals to manage and maintain these systems. However, government initiatives promoting digital transformation and the increasing awareness of data center energy efficiency are likely to offset these limitations. The continued expansion of the IT & Telecommunication sector, coupled with increasing data storage and processing requirements in other sectors, promises sustained growth for the South Korean data center power market throughout the forecast period. Segments like critical power distribution and remote power panels are expected to witness particularly strong growth due to increasing demand for high availability and redundancy in data center operations. This in-depth report provides a comprehensive analysis of the South Korea data center power market, offering invaluable insights for stakeholders across the industry. Covering the period from 2019 to 2033, with a base year of 2025, this study delves into market size, growth drivers, challenges, and future trends, equipping businesses with the knowledge needed to navigate this dynamic landscape. The report meticulously examines key segments, including power infrastructure, services, and end-users, with a granular focus on specific product types and regional variations. This analysis provides critical information for strategic decision-making, investment strategies, and competitive analysis within the rapidly expanding South Korean data center ecosystem. Recent developments include: March 2024: Schneider Electric announced its expansion of US manufacturing facilities at two locations to support critical infrastructure of data centers and other industries. The company plans to manufacture electrical switchgear and medium-voltage power distribution products at both locations., February 2024: Enlogic, a significant provider of power products, announced two new PDUs to its extensive iPDU product line: Horizontal & Vertical high AMP PDUs. They included a High Amp Vertical PDU with combination and locking combination outlet and a Horizontal high Amp PDU (100/125A) with combination and locking combination outlets of C13/C15 and C13/C15/C19/C21, offering versatility and flexibility.. Key drivers for this market are: Rising Adoption of Mega Data Centers and Cloud Computing, Increasing Demand to Reduce Operational Costs. Potential restraints include: High Cost of Installation and Maintenance. Notable trends are: The IT & Telecom Segment is Expected to Hold a Significant Market Share.

Explore the booming South Korea data center construction market, driven by digital transformation and AI. Discover market size, CAGR, key drivers, and infrastructure trends impacting this dynamic sector. 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 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.

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Data Center Construction Market Size 2025-2029

The data center construction market size is valued to increase USD 41 billion, at a CAGR of 8.8% from 2024 to 2029. Rising demand for data center colocation facilities will drive the data center construction market.

Major Market Trends & Insights

Europe dominated the market and accounted for a 32% growth during the forecast period.
By Application - Enterprise segment was valued at USD 23.20 billion in 2023
By Type - Electrical construction segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 70.71 billion
Market Future Opportunities: USD 41.00 billion
CAGR : 8.8%
Europe: Largest market in 2023

Market Summary

The market is a dynamic and continuously evolving sector, driven by the rising demand for colocation facilities and the growing focus on constructing energy-efficient, or 'green,' data centers. According to recent reports, the global data center colocation market is projected to reach a 35% market share by 2025, underscoring its significant growth potential. However, the industry faces challenges such as high power consumption, which accounts for approximately 2% of global electricity use. To address this issue, there is a push towards adopting advanced core technologies, including renewable energy sources and energy-efficient cooling systems.
Additionally, regulatory compliance and regional variations add complexity to the market landscape. For instance, European data centers must adhere to strict energy efficiency regulations, while the Asia Pacific region is witnessing significant growth due to increasing digital transformation initiatives.

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

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How is the Data Center Construction Market Segmented and what are the key trends of market segmentation?

The data center construction 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.

Application

  Enterprise
  Cloud
  Colocation
  Hyperscale


Type

  Electrical construction
  Mechanical construction
  General construction


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

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

In today's digital economy, the demand for robust data center infrastructure continues to escalate as businesses and consumers generate an unprecedented volume of structured and unstructured data. Approximately 60% of enterprises worldwide are reported to have increased their data center capacity in the last three years, while 40% plan to do so in the next two years. The need for high-performance computing systems has become crucial to support the extensive transformation of existing data center infrastructure, including network, cooling, and storage. Environmental monitoring, redundancy and failover, HVAC infrastructure design, security access control, risk assessment mitigation, generator backup power, IT infrastructure deployment, structural engineering design, remote hands support, project timeline management, server rack density, capacity planning strategies, raised floor systems, permitting and approvals, mechanical system design, physical security measures, construction cost estimation, disaster recovery planning, cable management strategies, network infrastructure cabling, building automation systems, power usage effectiveness, critical infrastructure design, precision cooling systems, thermal management solutions, sustainability certifications, electrical system design, energy efficiency metrics, fire suppression systems, uninterruptible power supply, power distribution units, and building code compliance are all integral components of modern data centers.

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The Enterprise segment was valued at USD 23.20 billion in 2019 and showed a gradual increase during the forecast period.

As businesses continue to prioritize digital transformation, the market is expected to witness significant growth. According to recent estimates, the market is projected to expand by 18% in the upcoming year, with a further 21% increase anticipated within the next five years. These figures underscore the continuous evolution and expansion of the data center industry, driven by the increasing demand for scalable and efficient infrastructure solutions.

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Regional Analysis

Europe is estimated to contribute 32% to the growth of the global marke

The Data Center Power Management Industry Analysis in Korea is estimated to be valued at USD 495.2 million in 2025 and is projected to reach USD 904.7 million by 2035, registering a compound annual growth rate (CAGR) of 6.2% over the forecast period.

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 rack market is experiencing robust growth, driven by the increasing adoption of cloud computing, big data analytics, and the expanding digital economy. The market is projected to reach a significant value, with a Compound Annual Growth Rate (CAGR) of 8.40% from 2025 to 2033. While the exact 2025 market size (XX) is not specified, considering the CAGR and typical market growth in this sector, a reasonable estimation would place the market value at approximately $150 million USD in 2025. This growth is fueled by several key factors. Firstly, the South Korean government's initiatives to promote digital transformation and the development of advanced technologies are creating a strong demand for data center infrastructure. Secondly, the rise of 5G networks and the Internet of Things (IoT) are generating vast amounts of data, necessitating more sophisticated and scalable data center solutions, including advanced rack systems. Finally, increasing data security concerns are driving organizations to invest in high-quality, secure data center racks. The market is segmented by type (e.g., standard racks, blade servers), size, and application, with key players such as Delta Power Solutions, Hewlett Packard Enterprise, Dell Inc, and others competing to provide innovative solutions. However, the market does face certain challenges, including the high initial investment costs associated with data center infrastructure and potential supply chain constraints. Despite these restraints, the long-term outlook for the South Korea data center rack market remains positive, driven by continuous technological advancements and the ever-increasing demand for data storage and processing capabilities. The market is expected to see significant expansion throughout the forecast period, with steady growth predicted across various segments and regions. 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 Construction Market Report Segments the Industry Into Infrastructure (By Electrical Infrastructure, by Mechanical Infrastructure, General Construction), by Tier Type (Tier 1 and 2, Tier 3, Tier 4), by Data Center Type (Colocation, Self-Built Hyperscalers (CSPs) and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD Million) for all the Above Segments.

The size of the South Korea Data Center Market market was valued at USD XX Million in 2024 and is projected to reach USD XXX Million by 2033, with an expected CAGR of 10.00 % during the forecast period. Key drivers for this market are: Increasing Awareness of Energy Consumption Control. Potential restraints include: High Risk Associated with Data. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

The South Korean data center rack market, exhibiting a robust Compound Annual Growth Rate (CAGR) of 8.40%, presents a significant opportunity for vendors. Driven by the increasing adoption of cloud computing, big data analytics, and the expansion of 5G infrastructure, the market is experiencing substantial growth. The demand for high-density computing solutions, coupled with the government's initiatives to promote digital transformation, further fuels this expansion. The market is segmented by rack type (open frame and closed frame), size (quarter, half, and full rack), and end-user (IT & telecommunication, BFSI, government, media & entertainment, and others). Major players like Olabs Technology, DOBE Computing, Raritan, Delta Power Solutions, Eaton, Black Box, Schneider Electric, Rittal, Dell, and Hewlett Packard Enterprise are competing in this dynamic landscape. While precise market size figures for 2025 are unavailable, projecting from the available CAGR and considering the typical growth trajectory of mature technology markets, a reasonable estimate for the South Korea data center rack market size in 2025 would be in the range of $150-$200 million USD. Growth is expected to continue through 2033, driven by ongoing digitalization and the need for advanced data center infrastructure. However, potential restraints such as high initial investment costs and the need for skilled personnel could influence growth. The competitive landscape is characterized by both established international players and local companies. International vendors leverage their extensive product portfolios and global reach, while local players capitalize on their understanding of the local market and customer needs. Future growth will likely hinge on the successful implementation of energy-efficient solutions, advancements in rack design to accommodate higher densities, and the increasing adoption of edge computing technologies. The market is poised for steady expansion, reflecting the broader trends of digital transformation impacting South Korea's economic growth and technological advancements. The continued investment in data center infrastructure by both private and public sectors ensures a positive outlook for the data center rack market in South Korea over the next decade. Recent developments include: November 2023 - South Korean technology firm Naver has opened the first phase of its Sejong campus.The site spans 290,000 sqm (3.1 million sq ft) and is planned to reach 270MW of capacity at densities of 20kW. The site is reportedly able to host 600,000 servers, running Naver's cloud services., February 2024 - South Korea is planning to create a major data center cluster, with an IT capacity of up to 1GW, in the Gangwon Province. he site, near Gangneung and Donghae in the east of the country, could be home to up to 50 data centers, each with a capacity of 20MW.. Key drivers for this market are: 9.1 Increasing Number of Smartpone Users9.2 Fiber Connectivity Network Expansion in South Korea. Potential restraints include: 9.1 Increasing Number of Smartpone Users9.2 Fiber Connectivity Network Expansion in South Korea. Notable trends are: IT & Telecommunication holds the major share..

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Data Center Maintenance And Support Services Market Size 2025-2029

The data center maintenance and support services market size is forecast to increase by USD 16.94 billion, at a CAGR of 15.6% between 2024 and 2029.

The market is experiencing significant growth due to several key trends. The increasing adoption of Internet of Things (IoT) technology across various industries is driving the need for advanced data center support services to manage complex IT infrastructure. Additionally, the rising concerns over data security and cyber threats are compelling organizations to invest in strong maintenance and support solutions to safeguard their critical data. Furthermore, the growing expenditure on data center infrastructure is providing ample opportunities for market participants to offer innovative services and solutions. These factors collectively contribute to the market's growth and are expected to continue shaping its trajectory in the coming years.

What will be the Size of the Market During the Forecast Period?

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In today's digital world, data centers have become the backbone of IT infrastructure for businesses seeking to store, process, and manage their critical data. The market for data center services continues to evolve, offering flexible and adaptable solutions to meet the diverse needs of organizations. One significant trend in the data center services landscape is the shift towards energy-efficient and green data centers. With the increasing demand for high-density processing, data centers must be designed to minimize energy consumption and reduce carbon footprints. This not only helps businesses save costs but also aligns with their sustainability goals. Another critical aspect of data center services is scalability. Modern data centers must be able to adapt to the ever-changing demands of businesses, whether it's handling big data or supporting the Internet of Things (IoT) and artificial intelligence (AI) applications. Cloud computing has been a game-changer in this regard, providing businesses with on-demand access to resources and the ability to scale up or down as needed. Security measures are also essential in data center services. With the increasing amount of sensitive data being stored and processed, it's crucial to have advanced analytics and security protocols in place to protect against cyber threats.
Cooling systems are another critical component of data center services, ensuring optimal operating temperatures to maintain the performance and reliability of IT infrastructure. The digital transformation has led to a rise in the adoption of data center services, with traditional data centers giving way to modern, more advanced infrastructure. Remote work and data protection are also key considerations, requiring data center services that can support these new work patterns while maintaining the highest levels of security and compliance. 

How is this market segmented and which is the largest segment?

The market 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.

End-user

  IT and telecom
  BFSI
  Government and defense
  Healthcare
  Others


Type

  Servers
  Storage
  Networking


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  APAC

    China
    India
    Japan
    South Korea


  South America



  Middle East and Africa

By End-user Insights

The IT and telecom segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to technological advancements and increasing data traffic. The telecom industry is a key contributor, with the rollout of 5G networks driving demand for high-speed connectivity and digital services. Additionally, the rise of cloud computing, including Public Cloud, IaaS, and Bitcoin Mining, is fueling market expansion. Smart Cities and Intelligent Buildings also require advanced data center solutions for efficient energy management and data processing. Small enterprises are also adopting cloud services, further boosting market growth. Renewable energy integration in data centers is another trend, as sustainability becomes increasingly important. Overall, these factors are propelling the market forward.

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The IT and telecom segment was valued at USD 3.33 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 34% to the growth of the global market during the forecast period.

Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast