The South Korea data center market was valued at USD 5.04 billion in 2025 and is projected to reach USD 16.23 billion by 2031, growing at a compound annual growth rate (CAGR) of 21.52%. This expansion is driven by rising demand for artificial intelligence, cloud computing, and digital infrastructure across the country. South Korea currently hosts around 58 operational colocation data centers, with approximately 32 located in Seoul alone. Most of these facilities meet Tier III standards set by the Uptime Institute, reflecting a strong focus on reliability and uptime. A key trend shaping the market is the shift toward AI-ready data centers. Major operators are investing in infrastructure capable of supporting high-density computing, including GPU clusters, liquid cooling systems, and increased power capacity. In September 2025, Amazon Web Services partnered with SK Group to develop a new data center facility in South Korea capable of housing about 60,000 GPUs. Similarly, in October 2025, OpenAI collaborated with Hitachi Energy to secure electrical infrastructure for its AI data center in the country. The average cost of developing a data center in South Korea ranges from $10 to $11 million per megawatt, which is lower than in other major APAC markets such as Singapore, Japan, and Australia. This cost advantage, combined with strong government support, makes South Korea an attractive destination for data center investments. The Korea Data Center Council (KDCC), in collaboration with the Ministry of Science and ICT, plays a central role in regulating the industry and promoting sustainable development. The KDCC awards the Green Data Center Certification to encourage environmentally responsible construction and operations. The market includes a diverse range of players. Colocation providers such as Equinix, Telehouse, KINX Inc, LG CNS, KT Corp., Digital Realty, and Macquarie Group are major drivers of investment. Cloud service providers like Amazon Web Services, Google, Microsoft, Alibaba Group, Oracle, and Tencent operate multiple cloud regions in Seoul, Busan, and Chuncheon. In June 2025, Alibaba announced plans to build its second data center in South Korea to strengthen its cloud infrastructure. IT infrastructure providers including Arista Networks, Cisco, Dell Technologies, Hewlett Packard Enterprise, IBM, Lenovo, and NVIDIA supply essential hardware. Construction and engineering firms such as ADIK, DL E&C, GS E&C, Hyundai Engineering & Construction, Heerim Architects & Planners, and Shinhan Architects & Engineers provide turnkey services for data center development. New entrants are also entering the market, including DCI Data Centers, FIR HILLS, Inuverse, KORAMCO Asset Management, THOMSON Computing – METAVISIO, OneAsia Network, ST Telemedia Global Data Centres, STACK Infrastructure, and Princeton Digital Group, signaling strong market momentum. The report offers a comprehensive analysis of investments across IT, electrical, mechanical, cooling, and construction segments, along with market sizing by power capacity and geographic region. It includes insights into existing and upcoming facilities, vendor landscapes, and growth opportunities. The study is valuable for investors, infrastructure providers, and policymakers seeking to understand the evolving data center ecosystem in South Korea.