▶ AI transforms Data Center infrastructure: The era of 'Close-range Edge' and 'Powerful AIDC' arrives
▶ RSQUARE Research Center predicts global data center market to expand to 867 trillion KRW by 2029
▶ Domestic supply increases by 20.3% CAGR: "Both transaction count and scale will expand moving forward"
▶ Greater Seoul's self-sufficiency in power remains below 100%; environmental burden and over-investment risks are key variables for industry expansion
RSQUARE (CEO: Lee Yong-gyun), a comprehensive commercial real estate service firm, released the '2025 Data Center Report: Edges Closer, AIDC Stronger... The Two Faces of the AI Era' on the 5th. This report analyzes structural changes in the data center industry, encompassing global market forecasts, domestic supply and transaction trends, power supply issues, and the latest technological shifts.
According to the report, the global data center market size is projected to grow from $372.8 billion (approx. 518 trillion KRW) in 2023 to $624.1 billion (approx. 867 trillion KRW) by 2029. This represents an increase of about 350 trillion KRW over six years, with a compound annual growth rate (CAGR) of approximately 9.0%. This growth trend suggests that data centers will strengthen their position as core infrastructure assets of the 'New Economy' in the domestic market and accelerate capital inflows.
In fact, the domestic market is seeing rapid growth in both supply and transactions. Since 2010, the supply of private data centers has increased by an annual average of 20.3%. Following the pandemic, the entry of new players such as asset management companies (AMCs) and specialized operators, alongside the expansion of 5G and AI, has further widened the growth margin over the last five years.
Transaction scale is also seeing a significant leap. While annual transactions remained below 100 billion KRW until 2023, mega-deals have begun to emerge, such as Macquarie’s acquisition of the Hanam Data Center (734 billion KRW) in 2024 and the SK AX Pangyo Data Center sale (506.8 billion KRW) in 2025. The report predicts that as assets currently held by AMCs hit the market, both the number and total value of transactions will rise simultaneously.
The report identifies two major trends in the AI era: the expansion of hyperscale centers led by local governments and the supply of small-to-medium data centers in Seoul's downtown areas, where securing large-scale power is difficult. In particular, 'Edge Data Centers'—which can be built in business districts with less than 10MW of power—are strategically placed near users to minimize latency and improve response speeds by decentralizing data. Their importance is growing rapidly due to the sharp rise in AI and the Internet of Things (IoT).
Furthermore, with the explosion of generative AI, 'AI Data Centers (AIDC)'—equipped with high-performance GPUs for machine learning and inference, high-bandwidth networks, and high-efficiency cooling systems—are emerging as a dominant trend.
However, power self-sufficiency remains a challenge. As of 2023, while regions like Gyeongbuk (215.6%) and Gangwon (212.9%) are self-sufficient, the power self-sufficiency of the Greater Seoul area (Seoul 10.4%, Gyeonggi 62.5%) falls well below 100%, leaving it dependent on other regions.
"While the 'Data Gravity' phenomenon triggered by AI will continue to drive demand and investment, we must not overlook environmental burdens such as increased greenhouse gas emissions and cooling water usage, as well as the risks of over-investment in power facilities caused by hollow demand," emphasized Gyu-jung Choi, a researcher at the RSQUARE Research Center.
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▶ AI transforms Data Center infrastructure: The era of 'Close-range Edge' and 'Powerful AIDC' arrives
▶ RSQUARE Research Center predicts global data center market to expand to 867 trillion KRW by 2029
▶ Domestic supply increases by 20.3% CAGR: "Both transaction count and scale will expand moving forward"
▶ Greater Seoul's self-sufficiency in power remains below 100%; environmental burden and over-investment risks are key variables for industry expansion
RSQUARE (CEO: Lee Yong-gyun), a comprehensive commercial real estate service firm, released the '2025 Data Center Report: Edges Closer, AIDC Stronger... The Two Faces of the AI Era' on the 5th. This report analyzes structural changes in the data center industry, encompassing global market forecasts, domestic supply and transaction trends, power supply issues, and the latest technological shifts.
According to the report, the global data center market size is projected to grow from $372.8 billion (approx. 518 trillion KRW) in 2023 to $624.1 billion (approx. 867 trillion KRW) by 2029. This represents an increase of about 350 trillion KRW over six years, with a compound annual growth rate (CAGR) of approximately 9.0%. This growth trend suggests that data centers will strengthen their position as core infrastructure assets of the 'New Economy' in the domestic market and accelerate capital inflows.
In fact, the domestic market is seeing rapid growth in both supply and transactions. Since 2010, the supply of private data centers has increased by an annual average of 20.3%. Following the pandemic, the entry of new players such as asset management companies (AMCs) and specialized operators, alongside the expansion of 5G and AI, has further widened the growth margin over the last five years.
Transaction scale is also seeing a significant leap. While annual transactions remained below 100 billion KRW until 2023, mega-deals have begun to emerge, such as Macquarie’s acquisition of the Hanam Data Center (734 billion KRW) in 2024 and the SK AX Pangyo Data Center sale (506.8 billion KRW) in 2025. The report predicts that as assets currently held by AMCs hit the market, both the number and total value of transactions will rise simultaneously.
The report identifies two major trends in the AI era: the expansion of hyperscale centers led by local governments and the supply of small-to-medium data centers in Seoul's downtown areas, where securing large-scale power is difficult. In particular, 'Edge Data Centers'—which can be built in business districts with less than 10MW of power—are strategically placed near users to minimize latency and improve response speeds by decentralizing data. Their importance is growing rapidly due to the sharp rise in AI and the Internet of Things (IoT).
Furthermore, with the explosion of generative AI, 'AI Data Centers (AIDC)'—equipped with high-performance GPUs for machine learning and inference, high-bandwidth networks, and high-efficiency cooling systems—are emerging as a dominant trend.
However, power self-sufficiency remains a challenge. As of 2023, while regions like Gyeongbuk (215.6%) and Gangwon (212.9%) are self-sufficient, the power self-sufficiency of the Greater Seoul area (Seoul 10.4%, Gyeonggi 62.5%) falls well below 100%, leaving it dependent on other regions.
"While the 'Data Gravity' phenomenon triggered by AI will continue to drive demand and investment, we must not overlook environmental burdens such as increased greenhouse gas emissions and cooling water usage, as well as the risks of over-investment in power facilities caused by hollow demand," emphasized Gyu-jung Choi, a researcher at the RSQUARE Research Center.