ASIA PACIFIC DATA CENTRE H1 2025 UPDATE

GREATER SEOUL ASIA PACIFIC PRIMARY MARKET

H1 2025 KEY INDICATORS*

533MW In Operation

520MW Planned

6.6% Colo Vacancy

195MW Under Construction

23 Operators

50 # of Data Centres

MARKET OVERVIEW Seoul’s data centre market continued its upward trajectory during H1 2025, with operational capacity reaching 533MW. The development pipeline also expanded, rising 12% to a combined total of 715MW across under-construction and planned projects. In addition, operators hold land banks that could support a further 250MW of capacity when fully developed, indicating strong long-term growth potential. However, development dynamics in Seoul are evolving – with constraints such as limited power availability in certain zones, high land costs, and a scarcity of suitable development sites leading to a more dispersed pattern of data centre construction. Unlike traditional markets where clusters dominate, Seoul is witnessing a decentralised build-out. As a result, the cumulative region outside of key clusters has emerged as the second-largest submarket after the Incheon/West Gyeonggi cluster, now accounting for 32% of operational capacity and 15% of the development pipeline. Beyond the capital, alternative locations across South Korea are gaining traction. Notably, SK Group and Amazon Web Services (AWS) have committed to developing an AI-focused data centre in Ulsan, which is expected to house up to 60,000 GPUs upon completion. Similarly, Changhae Development announced plans for an AI data centre in Yeongdo-gu, Busan, supported by a Memorandum of Agreement with TurboScale and BKB Energy to provide 50,000 GPUs. These developments reflect a growing trend of regional diversification driven by AI demand. Subsea connectivity is also being enhanced, reinforcing South Korea’s digital infrastructure. Four new subsea cables are set to land in Busan and Ulsan. The JAKO and Bridge One cables will link South Korea with Japan, while the Southeast Asia-Japan Cable 2 (SJC2) will connect the country with Southeast Asia, Hong Kong, Chinese mainland, Taiwan, and Japan. The E2A cable will provide direct connectivity to the U.S., further strengthening international bandwidth and resilience. Additionally, the cloud services sector remains active. Alibaba Cloud announced the launch of its second data centre in Seoul, aimed at meeting rising demand for cloud computing and AI services from South Korean enterprises. This expansion underscores Seoul’s growing importance as a regional hub for digital transformation. Seoul will continue to see steady growth in its data centre market, fuelled by decentralised development, regional diversification, and increasing demand for AI and cloud services.

Colo Hyperscale Self-build

CUSHMAN & WAKEFIELD | ASIA PACIFIC DATA CENTRE MARKET OVERVIEW