South Korea is expected to invest $9.9 billion in data centers over the next five years, positioning itself as a leading digital hub in the Asia-Pacific region.
According to a report by U.S. consulting firm Arizton, the size of South Korea’s data center market is projected to reach $9.9 billion by 2030, with an average annual growth rate of 12% from 2024 to 2030.
The report highlights that South Korea is emerging as a key investment hub for data centers in the Asia-Pacific region, driven by its strategic geographic location, strong government support, and ample land availability. The rising demand for artificial intelligence (AI), the Internet of Things (IoT), big data, and cloud computing is identified as a major growth driver.
The report also notes that government policies promoting data center development in the outskirts of Seoul, along with electricity subsidies, are helping to alleviate challenges related to high demand and land costs in urban areas. Additionally, South Korea’s global connectivity—enabled by 12 submarine cable systems—further enhances its competitive edge.
As the market expands, domestic private companies are also ramping up their activities. SK Telecom is expanding its AI-powered data centers, while LS Electric is accelerating its efforts in AI-based data center collaboration.
Telecommunications and cloud companies such as KT, LG Uplus, LG CNS, and SK Broadband are increasing investments in building and expanding data centers. Global cloud providers like Amazon Web Services (AWS), Microsoft (MS), and Alibaba are also strengthening their presence in the Korean market.
Major Korean construction firms, including GS Engineering & Construction, Hyundai Engineering & Construction, and Samsung C&T, are expected to participate in the construction of these new data centers.
