South Korea Edge Data Center Market

South Korea Edge Data Center Market Overview:

The South Korea edge data center market size reached USD 243.2 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 902.4 Million by 2033, exhibiting a growth rate (CAGR) of 14.01% during 2025-2033. Rapid digital transformation, widespread 5G deployment, increasing IoT adoption, AI/ML advancements requiring low latency, and government initiatives supporting localized digital infrastructure and domestic chipmakers are some of the factors contributing to South Korea edge data center market share.

South Korea Edge Data Center Market Trends:

Urban Digital Infrastructure Acceleration

In South Korea, the Seoul metropolitan area is undergoing a significant expansion in its advanced digital infrastructure, marked by the recent establishment of new data facilities in key urban districts after a considerable hiatus. This development highlights a robust demand for sophisticated computing resources, driven by the escalating adoption of artificial intelligence and cloud computing. The strategic placement of these facilities within the city aims to provide crucial, low-latency infrastructure, essential for the real-time processing and rapid data exchange that modern AI applications and cloud services require. This wave of investment underscores the nation's commitment to strengthening its digital backbone and aspiring to a leading global position in AI, reinforcing the Seoul metropolitan area as a vital hub for cutting-edge technological advancement. These factors are intensifying the South Korea edge data center market growth. For example, in July 2025, APAC data center firm Empyrion Digital launched its KR1 Gangnam Data Centre (KR1 GDC) in Seoul, South Korea. This marks the first new edge data center development in Gangnam in over a decade. The nine-story facility offers 29.4MW of IT load, addressing the high demand for quality data center infrastructure in the Seoul metropolitan area. Empyrion Digital's investment supports South Korea's ambition to become a global AI powerhouse by providing crucial, low-latency infrastructure for AI and cloud computing.

Government-Backed AI Infrastructure Push

South Korea is witnessing a significant surge in digital infrastructure development, heavily influenced by robust governmental initiatives aimed at solidifying its position as a global leader in Artificial Intelligence. Beyond private sector investments, there's a strong emphasis on building a nationwide "AI highway" through the establishment of dedicated AI data facilities. These strategic deployments, often supported by substantial public funding and tax incentives, are designed to provide the high-performance computing power and low-latency connectivity essential for advancing AI research, development, and deployment across various industries. This comprehensive national effort extends to fostering domestic AI chip production and ensuring broad access to AI resources, ultimately driving a fundamental shift toward a pervasive AI-driven economy.

South Korea Edge Data Center Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on component, facility size, and vertical.

Component Insights:

• Solution
• Services

The report has provided a detailed breakup and analysis of the market based on the component. This includes solution and services.

Facility Size Insights:

• Small and Medium Facility
• Large Facility

A detailed breakup and analysis of the market based on the facility size have also been provided in the report. This includes small and medium facility and large facility.

Vertical Insights:

• IT and Telecom
• BFSI
• Retail and E-commerce
• Government
• Healthcare and Life Sciences
• Manufacturing
• Gaming and Entertainment
• Automotive
• Others

The report has provided a detailed breakup and analysis of the market based on the vertical. This includes IT and telecom, BFSI, retail and e-commerce, government, healthcare and life sciences, manufacturing, gaming and entertainment, automotive, and others.

Regional Insights:

• Seoul Capital Area
• Yeongnam (Southeastern Region)
• Honam (Southwestern Region)
• Hoseo (Central Region)
• Others

The report has also provided a comprehensive analysis of all the major regional markets, which include Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

South Korea Edge Data Center Market News:

• In July 2025, South Korea invested KRW 27.3 Billion (USD 19.9 Million) to establish regional edge data centers, specifically micro data centers (MDCs), powered by domestic AI chips. Led by the Ministry of Science and ICT, this initiative aims to provide low-latency, cost-effective AI services to SMEs, hospitals, and public institutions outside metropolitan areas. The project also seeks to bolster local AI chipmakers like Furiosa AI and Rebellions, reducing reliance on foreign firms such as Nvidia by fostering domestic AI ecosystem growth and driving regional edge deployments.

South Korea Edge Data Center Market Report Coverage:

Key Questions Answered in This Report:

• How has the South Korea edge data center market performed so far and how will it perform in the coming years?
• What is the breakup of the South Korea edge data center market on the basis of component?
• What is the breakup of the South Korea edge data center market on the basis of facility size?
• What is the breakup of the South Korea edge data center market on the basis of vertical?
• What is the breakup of the South Korea edge data center market on the basis of region?
• What are the various stages in the value chain of the South Korea edge data center market? 
• What are the key driving factors and challenges in the South Korea edge data center market?
• What is the structure of the South Korea edge data center market and who are the key players?
• What is the degree of competition in the South Korea edge data center market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the South Korea edge data center market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Korea edge data center market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the South Korea edge data center industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.