South Korea Data Center Market Size, Share, and COVID-19 Impact Analysis, By Data Center Size (Large, Massive, Medium, Mega, Small), By Tier Type (Tier 1 and 2, Tier 3, Tier 4), and South Korea Data Center Market Insights, Industry Trend, Forecasts to 2035

South Korea Data Center Market Insights Forecasts to 2035

• The South Korea Data Center Market Size was estimated at USD 3.9 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 9.58% from 2025 to 2035
• The South Korea Data Center Market Size is Expected to Reach USD 10.67Billion by 2035

According to a Research Report Published By Spherical Insights & Consulting, the Japan South Korea Data Center Market Size is Anticipated to Reach USD 10.67 Billion by 2035, Growing at a CAGR of 9.58% from 2025 to 2035. 

Market Overview

The South Korea Data Center Market Size is the sector and facilities engaged in data center construction, operation, and services within South Korea. Data centers are buildings employed to accommodate computer systems and support components, including telecommunications and storage systems, which are necessary in facilitating digital operation, cloud computing, and internet-based services. Additionally, major drivers driving the South Korea data centre market are fast-paced digital transformation in industries, increasing use of cloud-based services, and adoption of 5G technology. Moreover, the government's emphasis on smart city projects and cybersecurity development is driving data infrastructure growth. Trends like edge computing, green data centres, and higher deployment of hyperscale facilities are defining the competitive environment. These advancements are facilitating companies to attain low-latency operations and energy efficiency in achieving escalating data traffic requirements.

Report Coverage

This research report categorizes the market for the South Korea data center market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea data center market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the South Korea data center market.

Driving Factors

The South Korea data centre market is highly influenced by the swift rate of digitalization in both public and private sectors. Businesses are adopting cloud models increasingly to enable scalable operations, decrease IT infrastructure expenses, and improve system flexibility. Cloud providers, such as international giants Amazon Web Services, Microsoft Azure, and Google Cloud, are growing their regional presence in South Korea because of escalating demand.

Restraining Factors

The South Korean data center market is hindered by high initial and running expenses, especially for small companies, and the requirement of regular investment in energy-efficient technologies in order to meet environmental regulations.

Market Segmentation

The South Korea Data Center market share is classified into data center size and tier type.

• The mega segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea data center market is segmented by data center size into large, massive, medium, mega, small. Among these, the mega segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. This segment's visibility is propelled by growing demand from worldwide conglomerates and cloud service providers seeking large-scale infrastructure. The segment is also experiencing major developments, especially in the Greater Seoul area, as top operators set up new facilities.

• The tier 4 segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea data center market is segmented by tier type into tier 1 and 2, tier 3, tier 4. Among these, the tier 4 segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. This segment's popularity is driven by the rise in demand for continuous business services and the growing requirement for extremely dependable data center infrastructure. There are presently nine Tier 4-certified data centers in the nation, operated by players such as Digital Realty Inc., KT Corp., LG CNS, LG Uplus, and Digital Edge, building enormous and mega-sized data center facilities with Tier 4 standards.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea data center market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Digital Edge (Singapore) Holdings Pte Ltd
• Digital Realty Trust Inc.
• Dreammark1
• Equinix Inc.
• KINX
• KT Corporation
• LG CNS
• Lotte Data Communication
• Naver
• Others

Recent Developments:

In September 2024[KG1] , Empyrion Digital entered into a binding deal with a leading Japanese financial services group to build a 25MW AI-ready data center in Tokyo. The JP1 Tokyo facility was designed as a five-story, 21,000 sqm Tier III, carrier-neutral data center optimized to host Generative AI and High-Performance Computing workloads. Construction was scheduled to begin in 2025, with operations expected to commence by late 2027.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at South Korea, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the South Korea data center market based on the below-mentioned segments:

South Korea Data Center Market, By Data Center Size 

• Large
• Massive
• Medium
• Mega
• Small

South Korea Data Center Market, By Tier Type 

• Tier 1 and 2
• Tier 3
• Tier 4