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Cushman & Wakefield: South Korea's Data Center Market Needs $14 Billion Investment by 2030
Technology Services · Internet Software/Services · yonhap_finance · 2026-09-04
Driven by surging AI and cloud demand, South Korea's data center market is projected to require approximately $14 billion in investment by 2030.
What Happened
Market Outlook: Cushman & Wakefield projects that South Korea's data center market will require approximately $13.6 billion (19 trillion KRW) in investment by 2030. This growth is fueled by the rapid expansion of AI and cloud computing services, which are driving significant demand for colocation space.
Investment Analysis: While development costs in South Korea are among the highest in the Asia-Pacific region at $13 million per MW, the market remains attractive with an expected yield on cost (YOC) of 9-10%. Investors continue to show strong interest, as evidenced by high pre-leasing volumes.
Regional Expansion: The Asia-Pacific data center landscape is set to grow significantly, with total capacity expected to reach 2.7 times current levels by 2030. Currently, over 26,000 MW of new development is in the pipeline, reflecting the global surge in AI-driven infrastructure needs.
Critical Success Factors: Stable power supply has emerged as the most critical factor for future data center investments. As high-performance AI computing requires massive amounts of energy, developers and investors are prioritizing facilities with robust power infrastructure and long-term scalability.