A green data center cluster is to be created in Korea’s southeastern port city of Busan. The Busan Metropolitan City unveiled the development of the 177,000 square meter data center complex in Busan’s Eco Delta City located in the Gangseo-gu district.
The announcement comes after Korea’s central government unveiled plans to actively support data center candidates in non-capital areas where electricity is abundant and are equipped with sufficient infrastructure. Busan has an advantage as a data center location as it serves as Korea’s starting point for more than 90% of submarine optical cables going overseas. Also, the city receives a stable power supply from its nearby Kori Nuclear Power Plant.
The Busan municipal government plans to open an offline business session this August 28 for companies wishing to move into the complex. Candidates wanting to move in have to send their applications by August 30. The preferential screening for candidates during the pre-sale period is slated to take place in September. The shortlisted candidates will be put up for the final selection process and reviewed by the Korea Water Resources Corporation to conclude a lease contract by October.
The Busan municipal government signed an agreement in 2021 with the Korea Water Resources Corporation and secured a total of 529,000 square meters of land for the creation of an attraction area for business. The area is divided into specialized zones dedicated to information and communication technology, the data center industry, and future strategic tech-related fields.
According to Research and Markets, the Korean data center market is expected to grow at a CAGR of 9.89% from 2022 to 2028 at US$ 6.74 billion by 2028. But the increase in rent for floor space and lack of skilled personnel to effectively deploy and manage operations are cited as the main challenges that could potentially impede the implementation of innovative solutions in the Korean market.
In response, the Korean government plans to further encourage the facilitation of data centers through its decentralization initiatives by making it more expensive for operators to build new facilities in the capital areas of Seoul, Incheon, and Gyeonggi-do province, whereas incentives are provided to those building facilities in non-capital areas.