As South Korea deploys 5G services and establishes smart cities, data traffic will increase and more data centres will be needed
In 2020, the global data centre market was valued at USD89 billion. Total revenue is projected to reach USD448.3 billion at a CAGR of 26 percent by 2027, based on data provided by Maximize Market Research.
The Asia Pacific region held the second-highest share of the data centre market in 2021. It is expected to retain its position throughout the forecast period. An increase in start-ups in developing nations like South Korea, China, and India as well as the region’s considerable 5G network infrastructure development are both influencing the market’s growth.
With a CAGR of 6.71 percent from 2022 to 2027, the South Korean data centre market, which was valued at USD3.9 billion in 2021, is estimated to rise to USD5.8 billion by 2027, according to Arizton.
South Korea’s government is promoting digitalisation with initiatives such as the Digital New Deal 2.0, the National Project of Bio Big Data, and investments in artificial intelligence.
It is growing at a fast pace due to increased data centre investments, connectivity, government initiatives, and technology penetration. The sector is also driven by the government’s support for foreign investments, the availability of renewable energy sources, and personal data privacy policies.
Seoul is the country’s major location for data centre developments, followed by emerging locations such as Anyang, Busan, Cheongju, Daegu, Gimhae, and Hanam.
As South Korea deploys 5G services and establishes smart cities, data traffic will increase and more data centres will be needed.
The market for data centres will benefit from the development of hyperscalers. Hyperscalers are increasing their investments in the design and construction of new data centres, as well as the capacity expansion of existing facilities.
Market expansion is anticipated to be driven by rising service-based offerings and the rising demand for public cloud services.
The Property Report editors wrote this article. For more information, email: [email protected].
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