South Korea Data Center Market to Reach 2.64 Thousand MW by 2030, Driven by Rising Cloud Adoption and AI Workloads

The South Korea data center market is entering a high-growth phase, supported by increasing digital infrastructure demand across enterprises, telecom operators, and global cloud providers. According to Mordor Intelligence, the market size is expected to expand from 1.44 thousand MW in 2025 to 2.64 thousand MW by 2030, registering a compound annual growth rate (CAGR) of 12.88%. 

South Korea is witnessing rapid transformation in data processing needs due to AI adoption, 5G expansion, and strong government support for digital initiatives. Enterprises are expanding colocation and hyperscale deployments, contributing significantly to the South Korea data center industry.

Key Market Trends in South Korea Data Centers

Rising Demand for Colocation Services: Colocation is becoming the preferred choice for enterprises seeking flexible and cost-efficient infrastructure. Hyperscale, wholesale, and retail providers are seeing steady demand as businesses shift from on-premise models to shared facilities.

Cloud Adoption Transforming Workloads: The rapid migration of workloads to the cloud is driving strong demand for hyperscale data centers. BFSI, government, and telecom companies are accelerating their cloud strategies, making South Korea a critical hub for cloud-driven growth.

E-Commerce Accelerating Infrastructure Needs: The expansion of digital commerce is putting greater pressure on IT capacity. Online retailers rely heavily on robust data center infrastructure to ensure seamless customer experiences, secure transactions, and scalable operations.

Government Push for Digital Transformation: National initiatives around smart cities, 5G, and digital policies are encouraging investment in new facilities. The government’s support for a cloud-first approach is shaping long-term growth and strengthening South Korea’s leadership in the regional market.

Market Segmentation of the South Korea Data Centers Market 

• Hotspot (Busan, Greater Seoul, Rest of South Korea) 
• Data Center Size (Small, Medium, Large, Mega, Massive) 
• Tier Type (Tier 1 & 2, Tier 3, Tier 4) 
• Absorption (Utilized, Non-Utilized) 
• Colocation Type (Retail, Wholesale, Hyperscale) 
• End User (BFSI, Cloud, E-Commerce, Government, Manufacturing, Media & Entertainment, Telecom, Other End Users)

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Leading Companies in the Market 

• Equinix Inc. 
• KT Corporation 
• Naver 
• SK Broadband 
• Telstra Corporation Limited

Dominant Country

South Korea dominates the regional data center landscape due to advanced connectivity, widespread 5G rollout, and strong government backing for digital transformation. Greater Seoul remains the largest hub, hosting a majority of deployments thanks to its enterprise density and hyperscale presence. With BFSI, telecom, and cloud services fueling demand, South Korea is expected to maintain its leadership in data center market size across Asia.

Trending Reports in South Korea Data Center Industry

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