South Korea Data Center Construction Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 5.19 Billion |
| Market Size (2030) | USD 12.76 Billion |
| CAGR (2024 - 2030) | 16.18 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Korea Data Center Construction Market Analysis
The South Korea Data Center Construction Market size is estimated at USD 5.19 billion in 2024, and is expected to reach USD 12.76 billion by 2030, growing at a CAGR of 16.18% during the forecast period (2024-2030).
- Under Construction IT Load Capacity: The upcoming IT load capacity of the South Korean data center construction market is expected to reach more than 2800 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to be more than 5.7K sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach more than 300K units by 2030.
- Planned Submarine Cables: There are more than 20 submarine cable systems connecting South Korea, and many are under construction.
South Korea Data Center Construction Market Trends
Tier 3 Holds Highest Market Share
- South Korea housed 36 data centers, each holding a prestigious tier 3 certification in 2023. The nation's increasing preference for tier 3 data centers stems from their recognized reliability and cost-effectiveness. Notably, South Korea is currently in the process of constructing more than 10 additional data center facilities.
- Leading the charge in this construction boom are Equinix, LG CNS, Empyrion DC, STT GDC Pte Ltd, OneAsia Network, and Stack Infrastructure. Primarily, these data centers are centered in the vibrant Greater Seoul area, with projections indicating that the majority will be up and running by 2027.
- As global conglomerates increasingly prioritize business continuity, they are steering away from tier 1 and 2 facilities, causing a dip in demand for these tiers. This trend underscores a heightened emphasis on tier 3 and 4 data centers.
- A tier 3 data center features redundant power and cooling systems, ensuring uninterrupted services during maintenance. It requires at least three days of independent power supply. The redundant cooling systems prevent overheating, ensuring optimal equipment performance. Tier 3 data centers are lauded for their high data and application availability, reducing downtime. Their redundant systems enable smooth transitions during maintenance, ensuring uninterrupted operations.
- In 2024, South Korea's Ministry of Science and ICT unveiled plans to inject over USD 130 million (KRW 172.9 billion) into enhancing the nation's communication technologies, with a keen eye on ushering in the era of 6G. Of this sum, a notable USD 15.6 million (KRW 20.6 billion) is earmarked for propelling next-gen networks, with a pronounced emphasis on 6G. This strategic move is poised to not only boost the utilization of VOD, online shopping, and smartphone services but also to necessitate an expansion of data center servers, particularly favoring tier 3 facilities, to meet the escalating demand driven by the surging digital connectivity among users.
IT and Telecom Segment to Have Significant Market Share
- South Korea's telecom market, trailing only Hong Kong, leads the way in pioneering communication technologies, notably 5G and 6G. Fueled by robust government support, the market is fiercely competitive yet remains stable. This backing has been pivotal in propelling advanced infrastructure deployments in both fixed and mobile segments. South Korea also boasts two global equipment giants, Samsung and LG.
- South Korea's government recently eased entry barriers for cloud computing services, paving the way for global tech behemoths such as Amazon and Microsoft. This move poses a significant challenge to local industry players.
- KT, Naver, and NHN, leading domestic cloud service providers, voice worries over the increasing influence of foreign competitors. In contrast, tech giants in the United States and China are adapting swiftly to regulatory shifts, actively recruiting cloud computing specialists, particularly for public initiatives, underscoring a surging need for cloud data centers.
- In March 2024, the South Korean Ministry of Science and ICT unveiled an ambitious initiative. The goal is to inject KRW 121.9 billion (approximately USD 91.5 million) into bolstering the nation's cloud computing sector. These developments signal added prospects for local data center construction firms.
South Korea Data Center Construction Industry Overview
The South Korean data center construction market features key players like Daelim Co Ltd and Samsung C&T Corporation, among others, leading to a slightly fragmented landscape. Notably, major data center corporations are intensifying their investments in South Korea, with a primary focus on expansion and building new facilities. This uptick in investments directly correlates with the growing demand for advanced data processing and storage capabilities.
For instance, in January 2024, DCI Data Centers (DCI) and Daelim Co. initiated the construction of a data center in Seoul, South Korea. This collaborative project marks DCI's inaugural foray into the South Korean data center market.
South Korea Data Center Construction Market Leaders
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Daelim Co Ltd.
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Samsung C&T Corporation
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Hyundai Engineering & Construction
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Bosung Group
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DPR Asia Co., Ltd.
*Disclaimer: Major Players sorted in no particular order
South Korea Data Center Construction Market News
- 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.
South Korea Data Center Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definitions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Research Framework
2.2 Secondary Research
2.3 Primary Research
2.4 Data Triangulation and Insight Generation
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Market Dynamics
4.2.1 Market Drivers
4.2.1.1 Increase in Data Center Investments and Availability of Free Trade Zones
4.2.1.2 Rising Demand for Cloud Based Services and Investment in Cloud Computing
4.2.2 Market Restraints
4.2.2.1 Growing Pressure on Electricity Grids
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Key South Korea Data Center Construction Statistics
4.4.1 Number of Data Centers in South Korea, 2022 and 2023
4.4.2 Data Center Under Construction in South Korea, in MW, 2024 - 2029
4.4.3 Average CAPEX and OPEX for South Korea Data Center Construction
4.4.4 Data Center Power Capacity Absorption in MW, Selected Cities, South Korea, 2022 and 2023
4.4.5 Top CAPEX Spenders on Data Center Infrastructure in South Korea
5. MARKET SEGMENTATION
5.1 By Infrastructure
5.1.1 By Electrical Infrastructure
5.1.1.1 Power Distribution Solution
5.1.1.1.1 PDU - Basic & Smart - Metered & Switched Solutions
5.1.1.1.2 Transfer Switches
5.1.1.1.2.1 Static
5.1.1.1.2.2 Automatic (ATS)
5.1.1.1.3 Switchgear
5.1.1.1.3.1 Low-Voltage
5.1.1.1.3.2 Medium-Voltage
5.1.1.1.4 Power Panels and Components
5.1.1.1.5 Other Power Distribution Solutions
5.1.1.2 Power Backup Solutions
5.1.1.2.1 UPS
5.1.1.2.2 Generators
5.1.1.3 Service - Design & Consulting, Integration, Support, and Maintenance
5.1.2 By Mechanical Infrastructure
5.1.2.1 Cooling Systems
5.1.2.1.1 Immersion Cooling
5.1.2.1.2 Direct-To-Chip Cooling
5.1.2.1.3 Rear Door Heat Exchanger
5.1.2.1.4 In-Row and In-Rack Cooling
5.1.2.2 Racks
5.1.2.3 Other Mechanical Infrastructure
5.1.3 General Construction
5.2 By Tier Type
5.2.1 Tier 1 and 2
5.2.2 Tier 3
5.2.3 Tier 4
5.3 By End User
5.3.1 Banking, Financial Services, and Insurance
5.3.2 IT and Telecommunications
5.3.3 Government and Defense
5.3.4 Healthcare
5.3.5 Other End Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Daelim Co Ltd
6.1.2 Samsung C&T Corporation
6.1.3 Hyundai Engineering & Construction
6.1.4 Bosung Group
6.1.5 DPR Asia Co. Ltd
6.1.6 HanmiGlobal Co. Ltd
6.1.7 GS E&C Corp.
6.1.8 Posco Co. Ltd
6.1.9 SK ecoplant Co. Ltd
6.1.10 Hanyang Corporation Co. Ltd
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. ABOUT US
9.1 Industries Covered
9.2 Illustrative List of Clients in the Industry
9.3 Our Customized Research Capabilities
South Korea Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The South Korean data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, and other power distribution solutions)), power backup solution (UPS, generators), service – design & consulting, integration, support & maintenance)), mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, in-row and in-rack cooling)), racks, and other mechanical infrastructure)), and general construction)), tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services & insurance, it and telecommunications, government & defense, healthcare, and other end users). The market sizes and forecasts are provided in USD value for all the above segments.
| By Infrastructure | ||||||||||||||||||||
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| General Construction |
| By Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| By End User | |
| Banking, Financial Services, and Insurance | |
| IT and Telecommunications | |
| Government and Defense | |
| Healthcare | |
| Other End Users |
South Korea Data Center Construction Market Research Faqs
How big is the South Korea Data Center Construction Market?
The South Korea Data Center Construction Market size is expected to reach USD 5.19 billion in 2024 and grow at a CAGR of 16.18% to reach USD 12.76 billion by 2030.
What is the current South Korea Data Center Construction Market size?
In 2024, the South Korea Data Center Construction Market size is expected to reach USD 5.19 billion.
Who are the key players in South Korea Data Center Construction Market?
Daelim Co Ltd., Samsung C&T Corporation, Hyundai Engineering & Construction, Bosung Group and DPR Asia Co., Ltd. are the major companies operating in the South Korea Data Center Construction Market.
What years does this South Korea Data Center Construction Market cover, and what was the market size in 2023?
In 2023, the South Korea Data Center Construction Market size was estimated at USD 4.35 billion. The report covers the South Korea Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Korea Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
South Korea Data Center Construction Industry Report
Statistics for the 2024 South Korea Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Data Center Construction analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
South Korea Data Center Construction Market Report Snapshots
