South Korea Data Center Market Growth: Microsoft New Korean Facility

Since December 2013, several well known organizations have launched data center projects in South Korea. Microsoft also recently announced plans to invest in the region’s growing industry with a new facility on 330,000 square meters of South Korean land.

According to Arirang, Microsoft’s new structure would represent the largest investment ever made by a technology company in the country. The exact price of the planned data center development has not yet been made public, however, experts estimate that the company could spend as much as $9.4 billion on the project.

Although full details are not yet known, the source stated that this could also be the largest South Korean data center as well, potentially boasting twice the space of Google’s planned facility in Taiwan.

The technology giant told news sources that the new data center would serve to further its cloud business and commitment to customers in the region. Microsoft employees traveled to Busan early last month to search for possible data center sites, and more visits are expected in the near future. The company also advertised construction project management jobs available in Busan City, noted Business Korea.

Microsoft currently operates several facilities in Northeast Asia, including structures in Beijing and Tokyo. Many expect that the new South Korea data center will provide backup services for customers in Asia and other areas.

Data Center Projects, Market Research
Several sources noted that South Korea offers a number of benefits to companies in the data center sector, including access to best-in-class facility maintenance services, cost-effective utilities and a calm natural environment with a low frequency of natural disasters.

A main driving factor of the data center growth in South Korea is the rising demand for cloud services. According to a new Research and Markets report, the cloud computing market in the country is poised to expand at a compound annual growth rate of 22.16 percent through 2018. The report stated that in addition to Microsoft, Amazon Web Services and SK Telecom Co. also dominate the sector.

Siemens also announced plans for a data center projects in South Korea to support new and existing services and address regional client demands. The company said the main goals of the initiative are establishing more sustainable data center facilities and growing the organization’s service footprint.

“With our innovative technologies and solutions proven through global projects, Siemens will provide a new standard in the South Korean data center solutions market,” said Christoph Markus Aebischer, Siemens Building Technologies executive vice president.

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