As per MRFR analysis, the South Korea Modular Data Center Market Size was estimated at 382.92 (USD Million) in 2023.The South Korea Modular Data Center Market is expected to grow from 453.95(USD Million) in 2024 to 1,275 (USD Million) by 2035. The South Korea Modular Data Center Market CAGR (growth rate) is expected to be around 9.843% during the forecast period (2025 - 2035)
Key South Korea Modular Data Center Market Trends Highlighted
The market for modular data centers in South Korea is expanding significantly due to a number of factors. The growing need for effective and adaptable IT infrastructure to support the nation's thriving digital economy is one of the major market factors.As part of its Smart City ambitions, South Korea is putting a lot of effort into improving its information and communication technology skills. This emphasis promotes the use of modular solutions that can be quickly and affordably implemented, enabling companies to scale their operations as required.
The South Korean modular data center industry offers a plethora of prospects, especially in industries like cloud computing, e-commerce, and telecoms. Businesses are urged to innovate and embrace contemporary solutions by the government's continuous drive for digital transformation and expenditures in technology infrastructure.Additionally, a number of South Korean communities are pushing smart city initiatives, which is driving up demand for modular data centers that can accommodate dynamic urban settings. Data center operations and design are moving toward sustainability, according to recent developments.
This trend is visible in South Korea, where businesses are becoming more interested in eco-friendly procedures and energy-efficient technologies. Modular data centers that focus environmentally friendly operations are growing in popularity thanks to the government's emphasis on green technology and renewable energy solutions.Because of this, companies are now looking for modular solutions that satisfy both their operational and sustainability objectives. All things considered, the South Korean modular data center market is developing quickly due to legislative assistance, technology breakthroughs, and industry participants' increased awareness of sustainability.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
South Korea Modular Data Center Market Drivers
Rising Demand for Cloud Services in South Korea
The South Korea Modular Data Center Market is experiencing significant growth due to the increasing demand for cloud services across various sectors. The South Korean government has emphasized the expansion of its digital economy, with plans to invest approximately 23.4 billion USD in promoting digital infrastructure by 2025.This commitment is evident as major cloud service providers like Samsung SDS and KT Corporation are rapidly expanding their cloud offerings. The growth of the e-commerce sector, which reportedly saw a revenue increase of 18% in 2021, further fuels the demand for scalable and efficient data processing and storage solutions, leading to greater adoption of modular data centers.
As businesses transition to cloud-based models, the operational flexibility and efficiency provided by modular data centers will be indispensable for accommodating the increasing data loads. Consequently, this driver exemplifies a favorable environment for the South Korea Modular Data Center Market, catalyzing investments and technological advancements that will shape the industry landscape.
Government Support and Policies
In South Korea, governmental initiatives play a crucial role in bolstering the Modular Data Center Market. The South Korean government has instituted policies aimed at enhancing the growth of data centers, including tax incentives and support for Research and Development (R&D) projects in data center technology.
For instance, the 'Digital New Deal' initiative is set to allocate over 7.8 billion USD towards digital infrastructure, including data centers, by 2025. This policy not only highlights the government’s commitment to creating a robust digital economy but also positions modular data centers as a key component in achieving these goals.Such policies create an attractive investment climate, encouraging both local and international companies to participate, thus accelerating market growth and innovation.
Increasing Need for Energy Efficiency
The shift towards eco-friendly operational practices is a significant trend influencing the South Korea Modular Data Center Market. With South Korea's commitment to reducing greenhouse gas emissions by 37% by 2030, the demand for energy-efficient data solutions is surging.
Modular data centers, known for their energy efficiency and reduced carbon footprint, are becoming increasingly appealing to businesses aiming to meet these environmental targets. According to the Ministry of Science and Information Communication Technology, energy consumption in data centers can be reduced by up to 20% through the adoption of modular designs and efficient cooling technologies.This growing environmental awareness is pushing companies like LG Electronics and SK Telecom to invest in sustainable data center technologies, further driving the demand for modular data centers in South Korea.
Modular Data Center Market Component Insights
The Component segment of the South Korea Modular Data Center Market plays a critical role in outlining the market's infrastructure and operational efficiencies. With the increasing demand for flexible, scalable, and energy-efficient data storage solutions, the integration of various components such as Functional Modules and Services has become necessary.Functional Modules typically encompass crucial hardware elements like power distribution units, cooling systems, and modular building blocks, which collectively enable data centers to adapt to fluctuating workloads and technological advancements.
These modules allow users to deploy additional resources seamlessly, catering to the growing data processing and storage needs in South Korea's rapidly digitizing economy, which is characterized by the rise of IoT, big data, and artificial intelligence.Moreover, the Services aspect addresses the essential support functions required for the optimal performance of data centers, encompassing installation, maintenance, and management.
In South Korea, where the government emphasizes technological advancement and innovation, the service component is vital for ensuring that data centers remain effective amidst evolving industry standards and cybersecurity threats.As organizations increasingly seek to leverage cloud solutions and hybrid architectures, the importance of these services escalates, ensuring reliability and operational continuity.
This landscape drives the evolution of service offerings aimed at fostering innovations such as predictive maintenance, remote monitoring, and energy management solutions, which are essential for aligning with the government's sustainability goals.The intersections between Functional Modules and Services offer significant opportunities for market players to innovate, particularly in addressing energy efficiency and cost-reduction initiatives that support the South Korea Modular Data Center Market.
With a clear trend toward modular construction and streamlined operations, companies in South Korea are capitalizing on sustainable practices and advanced technologies as they seek to enhance both performance and profitability in the competitive landscape.Overall, the growth and development within the Component segment reflect the rising dependency on modular data centers as essential infrastructure catering to the needs of a digitally advanced society.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Modular Data Center Market Data Center Size Insights
The South Korea Modular Data Center Market is experiencing robust growth, particularly in the Data Center Size segment, which encompasses categories such as Mid-Sized and Large Enterprise. As the country accelerates its digital transformation, the demand for flexible and scalable data center solutions is driving this market segment forward.
Mid-Sized data centers are becoming increasingly relevant, offering a cost-effective solution for businesses looking to manage varying workloads without the complexities of large-scale operations.On the other hand, Large Enterprise facilities are gaining traction due to their ability to accommodate vast amounts of data and provide centralized resources, which is crucial for corporations aiming to enhance their operational efficiency.
The rise of cloud computing and advancements in technology have led organizations in South Korea to seek modular solutions that can adapt to specific needs, thereby fostering innovation and competitiveness.
Moreover, the South Korean government has made significant investments in enhancing digital infrastructure, further buoying the demand for modular data center solutions that cater to diverse business sizes and requirements. This growing emphasis on modularity and efficiency is expected to shape the South Korea Modular Data Center Market significantly in the coming years.
Modular Data Center Market Tier Type Insights
The South Korea Modular Data Center Market has shown a considerable emphasis on the Tier Type segmentation, reflecting the growing demands for reliability and efficiency in data storage and processing.Tier 4 data centers, which are known for their fault-tolerance and high availability, play a crucial role in supporting mission-critical applications, making them essential for organizations that prioritize uptime and data integrity.
Meanwhile, Tier 3 facilities, which provide redundancy and allow for concurrent maintainability, have become increasingly popular among businesses looking for a balance between performance and cost.The importance of Tier 2 data centers lies in their capacity to support smaller-scale operations while still ensuring operational efficiency, catering to a segment of the market that requires robust, yet cost-effective solutions.
Lastly, Tier 1 centers offer basic infrastructure with minimal redundancy, appealing to organizations with less demanding data processing needs. As each tier serves specific market requirements, understanding the nuances of this segmentation supports strategic investments, aligning with the overall trends in the South Korea Modular Data Center Market landscape.
With the increasing digital transformation and reliance on cloud services within South Korea, the demand across all tiers is projected to grow, driven by advancements in technology and the need for enhanced data security.
Modular Data Center Market End User Insights
The End User segment of the South Korea Modular Data Center Market plays a crucial role in the overall growth and dynamics of the industry. Within this segment, sectors such as Banking, Financial Services, and Insurance (BFSI), IT and Telecom, and Healthcare are significant contributors, driving demand for innovative data solutions.
BFSI is particularly important as it requires robust data management and security solutions to handle vast amounts of sensitive information, thereby increasing the necessity for modular data centers. The IT and Telecom sector is rapidly evolving, with 5G technology and increasing digital services amplifying the need for flexible and scalable data infrastructure.
Meanwhile, the Healthcare sector has embraced modular data centers to support electronic health records and telemedicine, ensuring secure and efficient access to patient information. The growing emphasis on data compliance, security, and operational efficiency across these industries is paving the way for enhanced modular solutions in South Korea.Overall, the demand from these end users showcases the critical nature of modular data centers in supporting the country's digital transformation and technological advancements.
South Korea Modular Data Center Market Key Players and Competitive Insights
The South Korea Modular Data Center Market is characterized by rapid growth and significant technological advancements, driven by an increasing demand for efficient, scalable, and flexible data center solutions.The trend towards digital transformation across various sectors in the region has propelled organizations to seek modular data centers for their ability to support edge computing, cloud services, and IoT applications.
The competitive landscape is marked by efforts to innovate and enhance product offerings while addressing the specific needs of local enterprises. Companies operating in this space are not only focused on providing advanced infrastructure but also on ensuring sustainability and energy efficiency as key differentiators in their value propositions.As competition intensifies, firms are continually strategizing to capture greater market share and improve their operational efficiencies.
Key Companies in the South Korea Modular Data Center Market Include
South Korea Modular Data Center Market Developments
A significant partnership was established in March 2025 by SK Telecom, Schneider Electric, Giga Computing, and the Korean startup Elice to develop modular data centers with an AI focus. Elice's Portable Modular Data Center (PMDC) technology will be used for quick deployment in areas like Busan and larger Asia-Pacific markets.At the same time, the alliance promotes cooperative research and development on next-generation liquid cooling methods, such as immersion and direct-to-chip cooling, with the goal of enhancing their effectiveness and thermal resilience for AI workloads.
The 10 MW AI Cloud Data Center in Yecheon-gun, a public-private infrastructure project intended to support AI computing needs, was finished in May 2025 by KT Cloud, the spin-off cloud business of KT Corporation. The project is scheduled to be launched in the second half of the year.The construction of an AI Data Center Demonstration Center at KT Cloud's Mokdong DC 2 location in Seoul was also announced in late March 2025. It is anticipated to be completely operational by November 2025 and will have automated operation, liquid cooling, and integration of renewable energy.
Furthermore, KT Cloud was chosen in April 2025 to manage the 30 MW Guro Data Center in Seoul, which includes design, construction, and operation duties. Its scope also includes partial leasing and mechanical/electrical work.These projects from KT Cloud, Fujitsu, SK Telecom, and Schneider Electric highlight the development of modular data centers in South Korea, which is fueled by public-private cooperation, energy-efficient cooling, AI-ready infrastructure, and quick modular deployment.
South Korea Modular Data Center Market Segmentation Insights
Modular Data Center Market Component Outlook
Modular Data Center Market Data Center Size Outlook
Modular Data Center Market Tier Type Outlook
Modular Data Center Market End User Outlook
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 382.92(USD Million) |
| MARKET SIZE 2024 | 453.95(USD Million) |
| MARKET SIZE 2035 | 1275.0(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 9.843% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Million |
| KEY COMPANIES PROFILED | Samsung Electronics, Mizuta, Schneider Electric, GS ITM, AhnLab, Naver Cloud, Fujitsu, LG Electronics, KT Corporation, Hyundai IT, Daewoo Information Systems, IBM, SK Hynix, Kumho Electric |
| SEGMENTS COVERED | Component, Data Center Size, Tier Type, End User |
| KEY MARKET OPPORTUNITIES | Rising demand for cloud services, Increased need for scalability, Energy efficiency and sustainability focus, Growth of edge computing infrastructure, Government support for digital transformation |
| KEY MARKET DYNAMICS | growing demand for edge computing, rising energy efficiency concerns, rapid cloud adoption, government support for data centers, increasing investments in technology infrastructure |
| COUNTRIES COVERED | South Korea |
Frequently Asked Questions (FAQ) :
The South Korea Modular Data Center Market is expected to be valued at 453.95 USD Million in 2024.
By 2035, the South Korea Modular Data Center Market is projected to reach a value of 1275.0 USD Million.
The expected CAGR for the South Korea Modular Data Center Market from 2025 to 2035 is 9.843%.
Key players in the South Korea Modular Data Center Market include Samsung Electronics, Schneider Electric, and IBM, among others.
The Functional Module segment is expected to be valued at 181.58 USD Million in 2024.
The Services segment of the South Korea Modular Data Center Market is expected to be valued at 272.37 USD Million in 2024.
In 2035, the Functional Module segment is projected to grow to 515.73 USD Million.
The Services segment is projected to reach a value of 759.27 USD Million by 2035.
Emerging trends include increasing demand for efficient and scalable data solutions, enhancing infrastructure flexibility.
Regional demand is significantly driving growth, as companies focus on expanding their digital infrastructure.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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