IMARC Group has recently released a new research study titled “South Korea Data Center Construction Market Size, Share, Trends and Forecast by Construction Type, Data Center Type, Tier Standards, Vertical, and Region, 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.
South Korea Data Center Construction Market Overview
The South Korea data center construction market size was valued at USD 1,137.78 Million in 2024. It is projected to grow at a CAGR of 6.75% from 2025 to 2033, reaching USD 2,048.18 Million by 2033. Growth is driven by government-backed initiatives, rising institutional investments, and increasing demand from AI, cloud computing, and digital platforms. These factors are fueling the demand for large-scale data center infrastructure and attracting public-private partnerships.
Study Assumption Years
- Base Year: 2024
- Historical Years: 2019-2024
- Forecast Period: 2025-2033
South Korea Data Center Construction Market Key Takeaways
- Market Size (2024): USD 1,137.78 Million
- CAGR (2025-2033): 6.75%
- Forecast Period: 2025-2033
- Government initiatives support large-scale infrastructure development, catalyzing market growth.
- Institutional investors increasingly see data centers as stable, high-return assets.
- South Korea plans a 3GW AI data center facility by 2028, creating over 10,000 jobs.
- Specialized data center investment funds and REITs may launch, providing new financial options.
- Increasing investments promote advancements in design, energy efficiency, and automation.
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Market Growth Factors
The South Korea data center construction market is propelled by substantial institutional investment. Asset managers, pension funds, and infrastructure investors increasingly recognize data centers as high-return, low-risk investments, especially with growing demands from artificial intelligence (AI), cloud computing, and digital platforms. For instance, Koramco Asset Management announced in 2025 plans to invest ₩10 trillion (approximately USD 7 billion) by 2032, aiming to become the largest data center operator in South Korea. This strategic portfolio aims for a 1GW IT-load capacity, incorporating multi-phase developments aligned with digital objectives.
Government-backed mega-projects also play a critical role. In 2025, South Korea announced a plan to build one of the world's largest AI data centers—a 3GW facility led by Fir Hills (SFR) with Jeollanam-do provincial government partnership—expected to complete by 2028. This project aims to generate USD 3.5 billion annually and create over 10,000 jobs, supporting hyperscalers and AI developers while advancing South Korea's position in global AI infrastructure.
These initiatives receive extensive policy and financial support, including land distribution, expedited approvals, assured power supply, and public-private partnerships. This comprehensive backing fosters construction of advanced, high-capacity data centers that enhance sustainability, energy efficiency, and technological resilience, supporting emerging tech like AI, quantum computing, and hyperscale cloud services.
Market Segmentation
Construction Type Insights:
- Electrical Construction: Involves installation and maintenance of data center electrical systems, ensuring the power integrity crucial for operational reliability.
- Mechanical Construction: Covers HVAC, cooling, and other mechanical systems critical to data center functionality and energy efficiency.
Data Center Type Insights:
- Mid-Size Data Centers: Cater to medium-scale requirements, balancing capacity and operational efficiency.
- Enterprise Data Centers: Owned and operated by large corporations to support internal IT needs.
- Large Data Centers: Hyperscale facilities designed for extensive cloud and AI workloads.
Tier Standards Insights:
- Tier I and II: Basic to intermediate infrastructure providing minimal redundancy.
- Tier III: Enhanced redundancy with concurrent maintainability.
- Tier IV: Highest reliability tier offering fault-tolerant infrastructure.
Vertical Insights:
- Public Sector: Government and public institutions utilizing data centers for various digital services.
- Oil and Energy: Industry-specific data center demands for operations and analytics.
- Media and Entertainment: Support for content creation, streaming, and digital media.
- IT and Telecommunication: Backbone support for communications and IT services.
- Banking, Financial Services and Insurance (BFSI): Critical data infrastructure for financial transactions and data security.
- Healthcare: Supporting medical data storage and telehealth applications.
- Retail: Data centers enabling e-commerce and digital retail services.
- Others: Includes various other industry sectors leveraging data center infrastructure.
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Regional Insights
The Seoul Capital Area is identified as the dominant region in the South Korea data center construction market. Regional analysis includes other areas such as Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others. However, specific market shares or CAGR by region are not provided in the source. This dominance aligns with Seoul's status as the economic and technological hub of South Korea, attracting significant data center investments.
Recent Developments & News
In June 2025, Alibaba Cloud announced the launch of its second data center in South Korea to meet increasing cloud and AI service demands, supporting companies like Univa and Lala Station to enhance AI innovation and digital infrastructure.
Also in June 2025, SK Group revealed plans to construct South Korea's largest AI data center in Ulsan in partnership with Amazon Web Services (AWS). This facility will feature 60,000 GPUs and aims for a 1GW capacity by 2029, with construction starting in August 2025.
Key Players
- Koramco Asset Management
- Fir Hills (SFR)
- Alibaba Cloud
- SK Group
- Amazon Web Services (AWS)
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