The Asia-Pacific Infrastructure Gap Demands Immediate Attention
South Korea’s digital infrastructure landscape is experiencing a seismic shift. As enterprises across the Asia-Pacific region grapple with escalating demand for artificial intelligence workloads, cloud computing, and low-latency services, South Korea has emerged as a critical node in the global data center ecosystem. The market, valued at $5.04 billion in 2025, is projected to surge to $16.23 billion by 2031—a compound annual growth rate of 21.52% that outpaces most developed markets.
This isn’t merely a story of capital deployment. It’s a strategic response to a fundamental challenge: the region’s existing infrastructure cannot support the computational demands of next-generation technologies. With approximately 58 operational colocation facilities—32 of which are concentrated in Seoul—South Korea is rapidly scaling capacity to meet enterprise requirements while maintaining cost competitiveness that rivals Singapore, Japan, and Australia.
AI-Ready Infrastructure Drives Capital Allocation
The architecture of South Korea’s data center expansion reveals a deliberate focus on artificial intelligence readiness. Facilities are being engineered with high-density rack configurations, liquid cooling technologies, and graphics processing unit clusters capable of supporting large-scale machine learning operations. Amazon Web Services’ partnership with SK Group exemplifies this trend: their joint facility will host approximately 60,000 graphics processing units, representing one of the largest AI-capable deployments in the region.
OpenAI’s October 2025 collaboration with Hitachi Energy further validates South Korea’s position as a strategic AI infrastructure hub. These partnerships aren’t opportunistic—they reflect calculated decisions based on South Korea’s competitive development costs, which range between $10-$11 million per megawatt, and the country’s robust regulatory framework governed by the Korea Data Center Council in collaboration with the Ministry of Science and ICT.
The market’s vendor landscape demonstrates maturity and diversity. Established colocation providers including Equinix, Digital Realty, and Telehouse operate alongside cloud giants like Amazon Web Services, Microsoft, Google, and Oracle. Meanwhile, new entrants such as ST Telemedia Global Data Centres, STACK Infrastructure, and Princeton Digital Group are capitalizing on expanding demand, particularly in secondary markets like Busan and Chuncheon.
Infrastructure Segmentation Reveals Strategic Priorities
The market’s segmentation across IT infrastructure, electrical systems, mechanical infrastructure, and construction services provides insight into where capital is flowing. IT infrastructure providers—Arista Networks, Cisco, Dell Technologies, Hewlett Packard Enterprise, and NVIDIA—are securing significant procurement contracts as operators prioritize server density and network throughput.
Electrical infrastructure, including uninterruptible power supply systems, generators, and power distribution units, represents a critical investment category. The emphasis on Tier III standards across most facilities indicates operators are prioritizing availability and redundancy over absolute fault tolerance, balancing operational resilience with capital efficiency.
Cooling systems merit particular attention. The adoption of liquid cooling technologies alongside traditional computer room air conditioning and chiller units signals operators’ recognition that air-cooled infrastructure cannot adequately manage the thermal output of AI workloads. Companies like Vertiv, Schneider Electric, and STULZ are positioning advanced cooling solutions as essential components rather than optional upgrades.
The Korea Data Center Council’s Green Data Center Certification program adds another dimension to infrastructure planning. Environmental sustainability is no longer a differentiator—it’s becoming a baseline requirement as enterprises face increasing pressure to demonstrate environmental responsibility in their digital supply chains.
Strategic Implications for Enterprise Decision-Makers
For chief information officers, chief technology officers, and infrastructure planning teams, South Korea’s data center expansion presents both opportunity and urgency. The 26 upcoming facilities identified in the market analysis will reshape capacity availability, pricing dynamics, and service-level expectations across the region.
Organizations evaluating colocation strategies should assess not only current capacity but also vendors’ roadmaps for AI-ready infrastructure, power density capabilities, and connectivity options. The distinction between retail and wholesale colocation pricing models will significantly impact total cost of ownership over multi-year commitments.
