South Korea Data Center Market Size & Share Analysis - Growth Trends & Forecasts Up To 2029

Key Highlights

• IT Load Capacity: The IT load capacity of the South Korean data center market may grow steadily and reach a capacity of 2019.1 MW by 2029.
• Raised Floor Space: The total raised floor area of the country is expected to reach 5.7 million sq. ft by 2029.
• Installed Racks: The total number of installed racks is expected to reach 285,816 units by 2029. Greater Seoul is expected to house the maximum number of racks in the coming years.
• DC Facilities: The data centers in the region are majorly tier 3 facilities with a gradual inclination toward tier 4 DC standards. This transformation will improve the DC performance and reduce the downtime of facilities.
• Leading Market Player: KT Corporation is the leading player in the South Korean market. It is projected to continue its leadership. LG CNS, a subsidiary of LG Corporation, is expected to strengthen its market presence with LG Uplus and Jukjeon Data Center.

South Korea Data Center Market Trends

Tier 3 is the largest Tier Type

• Tier 1 & 2 facilities are losing demand due to their inability to meet the growing uninterrupted business services. An increasing number of global conglomerates are creating business continuity services and gradually shifting priority to tier 3 and 4 data centers.
• Among tier 3 and 4, tier 4 facilities are expected to grow 10x times faster than tier 3 facilities. By the end of 2029, the country's tier 3 and 4 facilities are expected to provide an IT load capacity of 520.43 MW and 1,050.19 MW, respectively. Tier 4 facilities are expected to register a CAGR of 33.54%, whereas tier 3 facilities are expected to register 3.74% during the forecast period.
• Online activity is widespread in South Korea, with over 90% of people using the internet. Users communicate primarily through social media, such as instant messengers, emails, and social networking services. An uninterrupted supply of services is required for such activities, which is only possible with tier 3 and 4 facilities.
• In recent years, the progress of the Korean economy's digital transformation driven by next-generation industries, such as payment technology, AdTech, gaming, and fintech, has created room for a new life in service-based digital companies.
• As a result, the country's demand for digital infrastructure is accelerating, overcoming the obstacles created by domestic businesses over the past three decades with tier 1 & 2 facilities.

South Korea Data Center Industry Overview

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support