Data Centers in Incheon
1 locations found
Need Help?
Tell us about your needs and our team of experts will help you find and choose the perfect Data Center and solution at the best price.
Explore Other Markets in South Korea
Incheon – Strategic Gateway to Seoul and Beyond
Incheon serves as a critical data center market for organizations requiring low-latency access to the Seoul Capital Area, one of Asia's largest economic hubs. Its strategic location near major subsea cable landing stations provides a resilient and well-connected alternative to central Seoul, safeguarding digital assets while ensuring high-performance connectivity to millions of users.
Incheon: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity, acting as a primary entry point into South Korea. |
| Direct Cloud On-Ramps | 0 – as of October 2024 | Nearest on-ramps are in Seoul; connectivity is via private network extensions. |
| Power Cost | ₩182.70/kWh (≈ $0.13/kWh) | Based on rates for large industrial businesses as of October 2024. |
| Disaster Risk | Very Low (2.1/10) | Minimal exposure to significant natural disasters, enhancing operational stability. |
| Tax Incentives | No | No specific data center tax incentives are currently offered. |
| Sales Tax | 10% VAT | Standard Value Added Tax applies to services, as of October 2024. |
Network & Connectivity Ecosystem
Incheon's connectivity is defined by its proximity to Seoul and its role as a landing point for international traffic. The ecosystem is robust, though less dense than the capital itself.
Carrier Density & Carrier Neutrality: Carrier presence is growing, with an estimated 15-25 carriers available across the market as of October 2024. New facilities are focusing on providing carrier-neutral environments to attract diverse network providers.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps within Incheon data centers as of October 2024. Secure, private connections to all major cloud providers, including AWS, Google Cloud, and Microsoft Azure, are established via dedicated circuits to their availability zones in nearby Seoul.
Internet Exchange Points (IXPs): While major peering points like the KINX are centered in Seoul, data centers in Incheon facilitate low-latency private peering and direct connections to the capital's internet exchanges. This setup supports efficient traffic exchange for local and international content delivery.
Bare Metal: Bare metal server options are available in the broader Seoul metropolitan area, providing on-demand compute for performance-sensitive workloads. Providers such as Hivelocity and Leaseweb can service the region.
Power Analysis
South Korea's power infrastructure is highly developed, offering stable and reliable energy crucial for data center operations.
Average Cost Of Power: The average industrial power cost in South Korea is approximately ₩182.70/kWh (≈ $0.13/kWh) as of October 2024. This competitive rate, combined with grid stability, makes the region attractive for high-density deployments. The national energy mix is dominated by fossil fuels and nuclear power, ensuring consistent supply.
Power Grid Reliability: The power grid serving the Incheon and Seoul Capital Area is modern and well-maintained, with significant redundancy. Data centers in the region are typically supported by multiple substations, ensuring high levels of uptime and fault tolerance for mission-critical operations.
Market Access, Business & Tax Climate
Incheon's location within the Seoul Capital Area provides exceptional access to a dense economic and population center.
Proximity To Key Business Districts: Data centers in Incheon are strategically positioned to serve the Incheon Free Economic Zone (IFEZ), a hub for logistics, finance, and technology. They also offer low-latency connectivity to Seoul's primary business districts, including Gangnam and Yeouido.
Regional Market Reach: With a population of nearly 26 million, the Seoul Capital Area is one of the world's largest metropolitan economies. An infrastructure footprint in Incheon provides effective reach to this entire consumer and business market.
Tax Advantage For Data Centers: South Korea does not offer specific tax incentives for data center development or operation at the national level. The standard corporate tax structure and a 10% Value Added Tax (VAT) apply to all services.
Natural Disaster Risk
Based on the INFORM Risk Index, South Korea has a "Very Low" overall risk score of 2.1 out of 10, indicating a very stable and safe environment for critical infrastructure as of October 2024. The primary natural hazards are manageable and well-understood.
Key risk factors include:
- Tropical Cyclone: The highest individual risk factor, though modern building codes mitigate most impacts.
- River Flood: A moderate concern in specific low-lying areas.
- Coastal Flood: Relevant for a coastal city like Incheon, managed through infrastructure.
- Earthquake: A notable but moderate risk in the region.
- Tsunami: A potential, but lower probability, risk associated with seismic activity.
