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Data Centers in South Korea

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South Korea – Asia's Hyper-Connected Digital Hub

South Korea is a top-tier destination for any business requiring low-latency access to the vibrant North Asian market. Its dense ecosystem of 46 data centers and 9 cloud on-ramps provides a powerful platform for delivering services and applications with exceptional performance. This mature infrastructure directly supports revenue growth by guaranteeing a superior user experience in one of the world's most connected nations.

South Korea: At A Glance

FactorRating / DataNotes
Global Connectivity GradeAExcellent subsea cable access and dense domestic fiber networks.
Direct Cloud On-RampsOver 9 — as of September 2025Direct access to Alibaba, AWS, Azure, and Oracle Cloud.
Power Cost$0.13/kWh, as of October 2024Competitive pricing for a major Asia-Pacific market.
Disaster RiskVery Low (2.1/10), as of September 2025Main risks are cyclones and seismic events, but overall threat is low.
Tax IncentivesNoNo specific national incentives for data center construction or operation.
Sales Tax10% VAT, as of September 2025Standard Value Added Tax applies to services.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality With access to ~30 domestic and international carriers, as of September 2025, the market offers solid connectivity options. Carrier-neutral facilities are common, particularly in Seoul, providing resilient interconnection.

Direct Cloud On-Ramps South Korea hosts over 9 direct cloud on-ramps providing access to 6 distinct cloud regions, as of September 2025. This allows for low-latency, private connections to major platforms including Alibaba Cloud, AWS, Microsoft Azure, and Oracle Cloud.

Internet Exchange Points (IXPs) The primary public peering point is the Korea Internet Neutral eXchange (KINX), which facilitates efficient local traffic exchange. A significant amount of peering also occurs privately within major data centers.

Bare Metal Bare metal server options are widely available from numerous providers. Global suppliers like Hivelocity and phoenixNAP offer dedicated infrastructure in the region.

Power Analysis

Average Cost Of Power Industrial power costs are approximately $0.13/kWh, as of October 2024. This pricing is competitive for a highly developed Asian market, helping to manage operational expenditures for high-density deployments.

Power Grid Reliability The national power grid is modern and highly reliable, particularly in the Seoul Capital Area where most data centers are located. Major facilities are supported by redundant power feeds from multiple substations, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts Data centers are concentrated in and around Seoul, providing low-latency access to the Gangnam Business District and the Digital Media City. This proximity is critical for financial services, media, and technology companies.

Regional Market Reach From its strategic location, South Korea serves as an excellent digital gateway to North Asia. It offers low-latency connectivity to major markets in Japan, northern China, and Taiwan.

Tax Advantage For Data Centers South Korea does not offer specific national tax incentives for data center development or operations. The primary financial advantage comes from operating within a stable, high-growth economy with a clear regulatory framework.

Natural Disaster Risk

South Korea has a Very Low overall risk profile, with an INFORM Risk score of 2.1 out of 10, as of September 2025. While the aggregate risk is minimal, site selection and facility engineering should account for specific regional hazards. The primary natural risks are Tropical Cyclones (8.3/10), followed by River and Coastal Flooding (7.1/10) and Earthquakes (6.9/10). These factors are well-understood and are mitigated by modern data center construction standards.

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