Data Centers in Seoul

Seoul – Gateway to the Northeast Asian Digital Economy

Executive Summary

Seoul serves as the primary digital gateway for South Korea, providing essential infrastructure for enterprises targeting the broader Northeast Asian market. This location is vital for organizations requiring extreme reliability and ultra-low latency to serve one of the most technologically advanced consumer bases on the planet.

Seoul: At A Glance

Network & Connectivity Ecosystem

Seoul is a mature interconnection hub with a sophisticated fiber topology that supports massive data throughput for financial services and gaming sectors.

Carrier Density & Carrier Neutrality: Carrier count: over 25, as of September 2025. The market features a healthy mix of domestic telcos like KT and SK broadband alongside international carriers, ensuring a competitive peering environment.

Direct Cloud On-Ramps: Over 7, enabling access to 5 cloud regions, as of September 2025. Major cloud providers with a direct presence include AWS, Microsoft Azure, Alibaba Cloud, and Oracle Cloud.

Internet Exchange Points (IXPs): The Korea Internet Neutral eXchange (KINX) is the primary neutral IXP, facilitating traffic exchange between domestic and global networks.

Bare Metal: Bare metal services are available through global providers such as Hivelocity, offering flexible compute options for high-performance workloads, as of September 2025.

Power Analysis

Energy infrastructure in South Korea is characterized by high availability and centralized management, providing a stable foundation for high-density colocation.

Average Cost Of Power: Industrial electricity is $0.13/kWh, as of October 2024. This pricing is influenced by a diverse energy mix where nuclear and fossil fuels provide the base load, keeping costs predictable for large-scale operations.

Power Grid Reliability: The grid in the Seoul metropolitan area is well-engineered and resilient. Major data center corridors benefit from multi-substation support and a national priority on maintaining uptime for the technology sector.

Market Access, Business & Tax Climate

Seoul is the undisputed center of the South Korean economy, providing immediate access to half of the country's population and its most influential industries.

Proximity To Key Business Districts: Data centers are strategically located near major hubs like the Gangnam Finance District and Digital Media City in Sangam. This proximity ensures low-latency paths for high-frequency trading and media distribution.

Regional Market Reach: A Seoul deployment provides an effective platform for serving the 25 million people in the capital region. It also acts as a stable jumping-off point for reaching markets in Japan and Northern China.

Tax Advantage For Data Centers: The general business climate is highly stable and transparent. This predictability allows for accurate long-term financial modeling and reduces the risk of unforeseen regulatory costs.

Natural Disaster Risk

The overall risk profile for Seoul is Low, with a score of 2.1/10, as of September 2025. While the region experiences seasonal weather, the infrastructure is purpose-built to handle these events with minimal disruption.

• Tropical Cyclone (8.3): High regional risk; modern data centers are constructed to withstand extreme wind and rain, as of September 2025.
• River Flood (7.1): Moderate risk near major waterways; facilities are typically located on high ground or feature advanced flood defenses.
• Coastal Flood (7.1): A regional factor for the broader peninsula, though inland facilities in Seoul are largely shielded from direct impact.
• Earthquake (6.9): Moderate risk; stringent seismic building codes are standard for all tier-rated infrastructure.
• Tsunami (5.7): Indirect regional risk, as of September 2025. This primarily affects coastal landing stations rather than the inland Seoul data center clusters.