Data Centers in Busan

Busan – South Korea's Southern Connectivity Hub

Busan is a primary connectivity and logistics hub for southern South Korea and a strategic disaster recovery location for Seoul-based operations. The city's direct access to major subsea cable systems provides low-latency routes to Japan and the rest of Asia, making it essential for businesses that require resilient, high-performance infrastructure. Its growing data center market offers a compelling alternative to the capital, balancing cost, connectivity, and geographic diversity.

Busan: At A Glance

Network & Connectivity Ecosystem

Busan’s network ecosystem is defined by its critical role as South Korea's secondary international gateway, anchored by its large port and multiple subsea cable landing stations.

Carrier Density & Carrier Neutrality: The market supports over 2 providers and features multiple carrier-neutral facilities, providing diverse connectivity options as of September 2025.

Direct Cloud On-Ramps: With over 1 on-ramp available, Busan provides direct, private access to 2 cloud regions. Native access is available for Microsoft Azure. Other major cloud providers are accessible via high-speed network extensions to Seoul.

Internet Exchange Points (IXPs): While major public peering points are concentrated in Seoul, Busan's data centers offer robust private peering and direct transit connections. This ensures efficient traffic exchange for local and international routes.

Bare Metal: On-demand bare metal server options are available in the region. Providers like phoenixNAP offer dedicated server solutions suitable for performance-intensive workloads.

Power Analysis

Average Cost Of Power: Industrial power rates are approximately ₩182.70/kWh (≈ $0.13/kWh), as of October 2024. This competitive pricing, particularly for large consumers, makes operating high-density deployments economically viable.

Power Grid Reliability: The power grid supporting Busan is modern and stable, with infrastructure designed for industrial needs. Data centers in the area are typically fed by redundant power substations, ensuring high levels of uptime for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Busan are strategically located to serve the region's heavy industry, manufacturing, and logistics sectors. Proximity to the Port of Busan, one of the world's busiest, is a key advantage for companies in shipping and international trade.

Regional Market Reach: Busan provides effective digital services coverage for the entire southern Gyeongsang province and serves as a vital link to Japan. Its subsea cable connections offer some of the lowest latency routes to cities like Fukuoka and Osaka.

Tax Advantage For Data Centers: South Korea does not provide specific tax incentives aimed at attracting data center investment. The primary financial advantage comes from the country's straightforward corporate tax structure and stable business environment.

Natural Disaster Risk

Busan has a very low overall risk profile, with an INFORM Risk score of 2.1 out of 10 as of September 2025. This rating reflects the country's strong coping capacity and relatively low exposure to catastrophic events compared to other regional hubs.

Key natural hazard risks include:

• Tropical Cyclone: The highest individual risk factor, though modern infrastructure mitigates most impacts.
• River Flood: A moderate concern in specific low-lying areas.
• Coastal Flood: Relevant due to the city's coastal location.
• Earthquake: A notable but less frequent risk compared to neighboring Japan.
• Tsunami: A potential threat given the proximity to active seismic zones.