As of H1 2025, cities with the highest IT Power were Seoul, Anyang and Yongin, in order

• Data centre demand is distributed mainly around the SCA (Seoul Capital Area), where more than half of the population is concentrated, due to customer accessibility and infrastructure excellence.
• Among data centres in the SCA area, centres located in Seoul account for 41%, while centres located in Gyeonggi-do area account for about 59%, in which, the highest supply was concentrated in the Central South. Power supply restrictions in SCA has impacted new data centre developments.

Until 2028, the largest future supply in the Seoul Capital Area (SCA) market is scheduled for Ansan City

• As of H1 2025, most operational formats are Owner Operator types accounting for 72%, with Lease Operators accounting for only 11%. KT and LG Uplus dominate the SCA data center market, reflecting Korea’s history of telecom and corporate-operated facilities.
• Global operators are recently entering the market, with Equinix acquiring its first centre in 2019, while Digital Edge and Digital Realty entered the market in 2022.

In H1 2025, Empyrion Digital completed a hyperscale data center with major lease commitments secured at the ready-for-service stage

• Macquarie Infrastructure’s acquisition of the Hanam IDC last year was the only notable data center transaction in Korea’s emerging market.

Outlook

• For Users
  • Rental rates are expected to show a steady upward trend as data centre demand surges, centred around the SCA market.
  • As securing new data centre sites in the metropolitan area becomes more difficult, tenants may need to consider signing long-term contracts and reviewing relocation scenarios to other regions.
• For Providers
  • The Korean government is trying to distribute data centres to outside SCA areas through the Special Act on Distributed Energy Promotion. Therefore, there may be difficulties in securing power when constructing new data centres.
  • New strategies may be needed due to increasing demands for low-carbon data centres.