Data Centers in Busan
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Busan – South Korea's Southern Connectivity Hub
Busan is a primary digital gateway for Southern South Korea and a strategic alternative to Seoul. The market is ideal for companies needing low-latency access to manufacturing, logistics, and international subsea cable systems connecting to Japan and the wider Asia-Pacific region. Its solid infrastructure and low natural disaster risk provide a reliable platform for production and disaster recovery workloads.
Busan: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with direct access to major subsea cable landing stations. |
| Direct Cloud On-Ramps | Over 1 – as of September 2025 | Direct, private connections enhance security and performance for hybrid cloud deployments. |
| Power Cost | ₩182.70/kWh (≈ $0.13/kWh) | Industrial rates are competitive for the region, supporting cost-effective, high-density deployments. |
| Disaster Risk | Low (2.1/10), as of September 2025 | Overall risk is very low, making it a stable location for critical infrastructure. |
| Tax Incentives | No | No specific government incentives for data centers have been established. |
| Sales Tax | 10% VAT, as of September 2025 | A standard Value Added Tax applies to colocation and interconnection services. |
Network & Connectivity Ecosystem
Busan's connectivity is defined by its role as a major port and subsea cable hub, offering a robust alternative to Seoul for network traffic.
Carrier Density & Carrier Neutrality There are over 2 network providers available in Busan's data centers, as of September 2025. The presence of multiple carriers in colocation facilities ensures competitive pricing and resilient network design options.
Direct Cloud On-Ramps Over 1 direct on-ramp enables private access to 2 cloud regions, as of September 2025. Microsoft Azure is available via dedicated interconnects, allowing businesses to build secure, high-performance hybrid cloud architectures without traversing the public internet.
Internet Exchange Points (IXPs) While Seoul is the primary hub for public peering in South Korea, most peering in Busan occurs privately within data centers. This arrangement provides direct, low-latency connections between key networks and content providers.
Bare Metal Bare metal compute is readily available from providers in Busan. Companies like Hivelocity offer dedicated server solutions for workloads that demand maximum performance and control.
Power Analysis
Busan provides a reliable and reasonably priced power environment for data center operations.
Average Cost Of Power The industrial electricity rate is approximately $0.13/kWh, as of October 2024. This competitive cost structure helps manage operating expenses for power-intensive applications and high-density server racks.
Power Grid Reliability South Korea's national power grid is well-engineered and highly reliable. Data centers in Busan are supported by redundant power feeds and substation diversity, ensuring high levels of uptime for mission-critical operations.
Market Access, Business & Tax Climate
Busan offers excellent access to South Korea's industrial base and key international markets.
Proximity To Key Business Districts Data centers in Busan serve the region's massive manufacturing, shipping, and logistics industries. This proximity is critical for applications in supply chain management, industrial IoT, and smart factory automation that cannot tolerate high latency.
Regional Market Reach As South Korea's second-largest city and busiest port, Busan provides effective coverage for the entire southern part of the peninsula. Its extensive subsea cable connectivity also makes it an ideal point of presence for reaching markets in Japan and across Asia.
Tax Advantage For Data Centers The primary financial advantage in Busan is its straightforward and predictable tax environment. While there are no specific tax breaks for data centers, the standard 10% VAT provides clarity for financial planning and investment.
Natural Disaster Risk
Busan has a very low overall risk profile for natural disasters, with an INFORM Risk score of 2.1 out of 10, as of September 2025. This makes it one of the safer locations in the region for deploying critical infrastructure.
Key risks are well-understood and can be mitigated with standard facility engineering and site selection practices. The most significant natural hazards include:
- Tropical Cyclone: High risk (8.3/10) during typhoon season.
- River & Coastal Flood: Moderate risk (7.1/10).
- Earthquake: Moderate risk (6.9/10).
- Tsunami: Moderate risk (5.7/10).
