Korea’s Growing Data Center Market: Insights from Cushman & Wakefield’s John Pritchard

Korea’s Data Center Market Poised for Growth with AI and Machine Learning

As Korea solidifies its position as a key data center hub in the Asia Pacific region, the role of artificial intelligence (AI) and machine learning is set to drive the nation’s data center market growth in the coming years. John Pritchard, head of Cushman & Wakefield’s Tenant Advisory Group and leader of the Korea Data Center Advisory Team, highlighted the increasing demand for data centers to support the proliferation of AI technologies.

In a recent interview with The Korea Times, Pritchard emphasized that the use of technology is accelerating, leading to a greater need for data centers to handle and process vast amounts of information. The rise of remote work, streaming services, and AI-based services is fueling the demand for data sourced from data centers.

The influx of international players into Korea’s data center market, alongside domestic operators and telecommunication businesses, reflects the promising growth potential of the country’s digital economy and infrastructure network. Global trends such as cloud adoption and migration are driving expansion strategies by international cloud service providers in markets like Korea.

Greater Seoul, with its robust infrastructure, power grid, and status as a hub for commerce and industry, stands out as a premier data center market. While the capital region remains a key target for hyperscale and colocation groups, the Korean government’s policy directive to decentralize data centers is leading to increased attention on secondary and tertiary cities with the necessary infrastructure and zoning.

Locations like Busan, Korea’s second-largest city, may benefit from this decentralization strategy, thanks to their strong connectivity, infrastructure, and labor pool. With a growing development pipeline, Korea is on track to potentially surpass Singapore as the fourth-largest data center market in Asia within the next five to seven years.

The convergence of AI, machine learning, and the evolving data center landscape in Korea underscores the country’s emergence as a dynamic player in the regional data center market. As technology continues to advance, the demand for data centers equipped to handle these innovations will only continue to grow, positioning Korea as a key player in the global data center industry.