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

The South Korea Data Center Power Market is projected to experience significant growth over the forecast period, driven by the increasing demand for cloud computing, government regulations for local data security, and rising investments by domestic players. The market's expansion is further supported by the development of IT load capacity, raised floor space, and the installation of racks, particularly in Greater Seoul. Additionally, the construction of submarine cable systems is set to enhance connectivity, while government initiatives aimed at energy efficiency and low-carbon systems are expected to bolster market growth. Key players are also focusing on efficient power management systems to control costs and support these sustainability efforts.

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Market Size of South Korea Data Center Power Industry

South Korea Data Center Power Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.83 Billion
Market Size (2029) USD 1.67 Billion
CAGR (2024 - 2029) 13.83 %
Market Concentration High

Major Players

South Korea Data Center Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

South Korea Data Center Power Market Analysis

The South Korea Data Center Power Market size is estimated at USD 0.83 billion in 2024, and is expected to reach USD 1.67 billion by 2029, growing at a CAGR of 13.83% during the forecast period (2024-2029).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the South Korean data center market is expected to reach 2,019.1 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 5.7 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 285,816 units by 2029. Greater Seoul is expected to house the maximum number of racks in the coming years.
  • Planned Submarine Cables: There are close to 12 submarine cable systems connecting South Korea, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Bridge One, which stretches over 330 km and has landing points in Pohang.
  • The government is considering using power-saving measures such as subsidies to increase energy efficiency or productivity and move toward a low-carbon system to solve the electricity problem and crisis. In support of such policies and to reduce energy consumption, key market players are focusing on introducing efficient power management systems such as PDUs, busways, and UPS for the purpose of controlling unnecessary expenditures in data centers, which is expected to increase market growth.

South Korea Data Center Power Industry Segmentation

Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, that provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.

The South Korean data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)), and services) and end user (IT & telecommunication, BFSI, government, media & entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Power Infrastructure
Electrical Solution
UPS Systems
Generators
Power Distribution Solutions
PDU
Switchgear
Critical Power Distribution
Transfer Switches
Remote Power Panels
Others
Service
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-User
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South Korea Data Center Power Market Size Summary

The South Korea data center power market is poised for significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from domestic players. The market is characterized by a robust infrastructure development, with substantial expansions in IT load capacity, raised floor space, and the number of racks planned for installation. The Greater Seoul area is expected to be a major hub for these developments. Additionally, the introduction of submarine cable systems, such as the Bridge One, is set to enhance connectivity. The government's focus on energy efficiency and low-carbon systems is encouraging the adoption of advanced power management solutions, which are expected to further propel market growth.

The market landscape is highly competitive, with key players like Schneider Electric, ABB, Rittal, Fujitsu, and Legrand actively engaging in strategies such as mergers, acquisitions, and partnerships to strengthen their market position. The increasing digitalization, internet penetration, and e-commerce activities are driving the demand for data centers, leading to a rise in power consumption. Companies are investing in intelligent power distribution units to optimize energy usage and reduce costs. The presence of foreign tech giants, spurred by regulatory easing, is intensifying competition, prompting domestic firms to innovate and enhance their service offerings. This dynamic environment is fostering a rapid expansion of data center infrastructure and power solutions in South Korea.

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South Korea Data Center Power Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing

      2. 1.2.2 Increasing Demand to Reduce Operational Costs

    3. 1.3 Market Restraints

      1. 1.3.1 High Cost of Installation and Maintenance

    4. 1.4 Value Chain/Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Power Infrastructure

      1. 2.1.1 Electrical Solution

        1. 2.1.1.1 UPS Systems

        2. 2.1.1.2 Generators

        3. 2.1.1.3 Power Distribution Solutions

          1. 2.1.1.3.1 PDU

          2. 2.1.1.3.2 Switchgear

          3. 2.1.1.3.3 Critical Power Distribution

          4. 2.1.1.3.4 Transfer Switches

          5. 2.1.1.3.5 Remote Power Panels

          6. 2.1.1.3.6 Others

      2. 2.1.2 Service

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-User

South Korea Data Center Power Market Size FAQs

The South Korea Data Center Power Market size is expected to reach USD 0.83 billion in 2024 and grow at a CAGR of 13.83% to reach USD 1.67 billion by 2029.

In 2024, the South Korea Data Center Power Market size is expected to reach USD 0.83 billion.

South Korea Data Center Power Market Report Snapshots

South Korea Data Center Power Market Size & Share Analysis - Growth Trends & Forecasts (2024-2029)