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South Korea Data Center Construction Market Size (2024 - 2029)

The South Korea Data Center Construction Market is experiencing significant growth, driven by the country's rapid internet penetration and the increasing demand for internet-based infrastructure. The transition to a digital economy and the rising cloud service user penetration are key factors contributing to the expansion of the market. Despite challenges posed by the COVID-19 pandemic, which disrupted supply chains and slowed construction, the demand for data center capacity has surged post-pandemic, leading to a resurgence in construction activities. This growth has attracted global data center providers and Real Estate Investment Trusts to expand their operations in South Korea, further influencing the market size.

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Market Size of South Korea Data Center Construction Industry

South Korea Data Center Construction Market
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

South Korea Data Center Construction Market 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 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
By Electrical Infrastructure
Power Distribution Solution
PDU - Basic & Smart - Metered & Switched Solutions
Transfer Switches
Static
Automatic (ATS)
Switchgear
Low-Voltage
Medium-Voltage
Power Panels and Components
Other Power Distribution Solutions
Power Backup Solutions
UPS
Generators
Service - Design & Consulting, Integration, Support, and Maintenance
By Mechanical Infrastructure
Cooling Systems
Immersion Cooling
Direct-To-Chip Cooling
Rear Door Heat Exchanger
In-Row and In-Rack Cooling
Racks
Other Mechanical Infrastructure
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
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South Korea Data Center Construction Market Size Summary

The South Korea data center construction market is experiencing robust growth, driven by the country's rapid digital transformation and increasing internet penetration. With one of the fastest broadband connections globally, South Korea is witnessing a surge in demand for internet-based infrastructure, particularly in cloud services. This demand is further fueled by the rise of digital economy sectors such as fintech, gaming, and AdTech, which require advanced data center facilities to support their operations. The market is characterized by a shift from tier 1 and 2 facilities to more advanced tier 3 and 4 facilities, with tier 4 facilities expected to grow significantly faster. This transition is largely due to the need for uninterrupted business services, which are essential for the country's high level of online activity and communication.

The banking, financial services, and insurance (BFSI) sector in South Korea is a major contributor to the data center market, with significant investments in digital transformation and a strong focus on mobile banking solutions. The government's initiative to turn Seoul into a "fintech test bed" is expected to further boost demand for data centers in this segment. The market is fairly consolidated, with major players like Arista Networks, NetRack Enclosures, and DPR Construction dominating the landscape. Recent developments, such as Singapore's GIC raising funds for data centers in Seoul and Empyrion DC's new facility, highlight the ongoing investment and expansion in the market. These trends indicate a promising outlook for the South Korean data center construction market, with increasing opportunities for vendors and stakeholders.

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South Korea Data Center Construction Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 By Infrastructure

      1. 1.1.1 By Electrical Infrastructure

        1. 1.1.1.1 Power Distribution Solution

          1. 1.1.1.1.1 PDU - Basic & Smart - Metered & Switched Solutions

          2. 1.1.1.1.2 Transfer Switches

            1. 1.1.1.1.2.1 Static

            2. 1.1.1.1.2.2 Automatic (ATS)

          3. 1.1.1.1.3 Switchgear

            1. 1.1.1.1.3.1 Low-Voltage

            2. 1.1.1.1.3.2 Medium-Voltage

          4. 1.1.1.1.4 Power Panels and Components

          5. 1.1.1.1.5 Other Power Distribution Solutions

        2. 1.1.1.2 Power Backup Solutions

          1. 1.1.1.2.1 UPS

          2. 1.1.1.2.2 Generators

        3. 1.1.1.3 Service - Design & Consulting, Integration, Support, and Maintenance

      2. 1.1.2 By Mechanical Infrastructure

        1. 1.1.2.1 Cooling Systems

          1. 1.1.2.1.1 Immersion Cooling

          2. 1.1.2.1.2 Direct-To-Chip Cooling

          3. 1.1.2.1.3 Rear Door Heat Exchanger

          4. 1.1.2.1.4 In-Row and In-Rack Cooling

        2. 1.1.2.2 Racks

        3. 1.1.2.3 Other Mechanical Infrastructure

      3. 1.1.3 General Construction

    2. 1.2 By Tier Type

      1. 1.2.1 Tier 1 and 2

      2. 1.2.2 Tier 3

      3. 1.2.3 Tier 4

    3. 1.3 By End User

      1. 1.3.1 Banking, Financial Services, and Insurance

      2. 1.3.2 IT and Telecommunications

      3. 1.3.3 Government and Defense

      4. 1.3.4 Healthcare

      5. 1.3.5 Other End Users

South Korea Data Center Construction Market Size FAQs

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.

In 2024, the South Korea Data Center Construction Market size is expected to reach USD 5.19 billion.

South Korea Data Center Construction Market Report Snapshots

South Korea Data Center Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)