South Korea Data Center Processor Market Size
| Study Period | 2021 - 2031 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2031 |
| Market Size (2025) | USD 1.86 Billion |
| Market Size (2031) | USD 8.89 Billion |
| CAGR (2025 - 2031) | 29.82% |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
South Korea Data Center Processor Market Analysis
The South Korea Data Center Processor Market size is estimated at USD 1.86 billion in 2025, and is expected to reach USD 8.89 billion by 2031, at a CAGR of 29.82% during the forecast period (2025-2031).
South Korea is solidifying its position as a leading technology and data center hub in the Asia-Pacific region. Nearly 80% of the country's hyper-scale and cloud-based data center capacity is located in Seoul, the capital city. Smart cities like Songdo, Busan, and Daegu exemplify varied approaches to the smart city model, influencing future developments and driving generative AI adoption, particularly in Seoul, which has garnered global attention. To address the growing demand for AI computing, South Korea is making significant investments in AI data centers, integrating advanced servers, GPUs, CPUs, and AI accelerators.
South Korea, home to Samsung Electronics Co., Ltd. and SK Hynix Inc.—the global leaders in memory and AI chip production, including high-bandwidth memory (HBM) essential for AI hardware—anticipates significant growth in data center demand in the near future. This growth is expected to drive increased demand for central processing units (CPUs), graphics processing units (GPUs), and AI accelerators to support advanced AI applications. Notably, in 2024, the South Korean government committed nearly USD 7 billion to artificial intelligence development by 2027, aiming to establish a leadership position in advanced semiconductor technologies.
South Korea’s AI sector features key players like Nvidia Corporation, Intel Corporation, and Advanced Micro Devices, Inc., Samsung Electronics Co., Ltd., with Google LLC making notable advancements. Google has introduced TPU and GPU chips designed to enhance AI capabilities in data center operations.
South Korea's artificial intelligence (AI) sector is on the brink of significant growth, propelled by advancements in AI, the Internet of Things (IoT), smart city developments, and automation across industries such as manufacturing, financial technology, information technology, and healthcare. In 2024, the South Korean government announced a financial program worth approximately USD 7.5 billion to support the "AI Autonomous Manufacturing" initiative. This increasing investments in AI ascross various sectors will increase demands for AI data centers investments and expanded use of CPUs, GPUs, and accelerators.
South Korea Data Center Processor Market Trends
The Graphic Processing Unit (GPU) Segment is Expected to Drive the Growth of the Market
Data centers are increasingly adopting Graphics Processing Units (GPUs) to address challenges in artificial intelligence (AI), media processing, and 3D visualization. The growing demand for high-performance computing (HPC) and visual cloud computing has heightened the need for advanced processing solutions. By leveraging GPUs, data centers in South Korea are efficiently managing rising workloads and expanding data volumes, driven by AI advancements and the proliferation of virtualization technologies.
In South Korea, prominent companies such as Intel Corporation, Advanced Micro Devices, Inc., and NVIDIA Corporation dominate the GPU market by providing advanced solutions for data centers. In 2024, NVIDIA Corporation introduced groundbreaking hardware improvements, enhanced AI capabilities for scientific research, and updated its CUDA-Q and cuPyNumeric tools. The company also launched the H200 NVL PCIe GPU, optimized for air-cooled data centers, and expanded its product range with the GB200 NVL4 form factor.
In 2024, South Korea solidifies its position in the GPU market, fueled by significant investments from prominent data center operators such as SK Telecom Co., Ltd., NHN Cloud Corporation, Equinix, Inc., Digital Edge DC, CapitaLand Group, KINX, Inc., KDDI Telehouse Corporation, and ST Telemedia Global Data Centres. These companies, sourcing GPUs from NVIDIA Corporation and Dell Technologies, Inc., are meeting the growing demand for AI infrastructure. In November 2023, NHN Cloud Corporation collaborated with Dell Technologies, Inc. to establish an advanced AI and high-performance computing (HPC) facility in Gwangju. This facility, featuring Dell PowerEdge XE9680 servers equipped with eight NVIDIA H100 Tensor Core GPUs each, is tailored to support AI and HPC projects for NHN Cloud Corporation's clients. It also represents South Korea's first NVIDIA H100 GPU-based data center specifically designed for AI and HPC workloads.
Government Backing Fuels Surge in Colocation Data Centers and Processor Startups Amidst Growing AI Adoption
The data center industry in South Korea is undergoing significant transformation, driven by innovations in cloud computing, artificial intelligence, and automation. Major large and mega colocation and cloud providers, including SK Telecom Co., Ltd., NHN Cloud Corporation, Equinix, Inc., Digital Edge DC, CapitaLand Group, KINX, Inc., KDDI Telehouse Corporation, and ST Telemedia Global Data Centres, are strengthening their operations in the region. In 2024, SK Telecom Co., Ltd. announced plans to establish gigawatt-scale AI data centers in key South Korean locations, introduce GPU as a Service (GPUaaS) solutions, and launch Edge AI offerings. Additionally, the company is converting its existing facilities into AI-focused centers and, in partnership with Lambda, is providing access to Nvidia H100 GPUs.
The South Korean government is intensifying efforts to strengthen its semiconductor industry by introducing a funding program worth approximately USD 19 billion. This initiative includes incentives and subsidies for semiconductor companies, fostering innovation and collaboration with key players like chipmakers and data center operators. In 2024, the government proposed a domestic CHIPS Act, modeled after the US CHIPS and Science Act, to mitigate risks from potential tariffs suggested by President-elect Trump, ensuring robust support for the sector.
The data center market in South Korea is experiencing rapid growth as technology firms collaborate with local chipmakers to reduce reliance on U.S.-based suppliers such as Nvidia Corporation. Naver Corporation, for instance, has initiated the first phase of its Sejong campus and is negotiating with Samsung Electronics Co., Ltd. to create a proprietary AI neural processing unit (NPU) to lower GPU expenses. In a notable development, Samsung Electronics Co., Ltd. secured a contract worth approximately USD 752 million to supply Naver Corporation with Mach-1 AI accelerator chips, priced at around USD 3,756 each, with a delivery range of 150,000 to 200,000 chips, enabling Naver Corporation to reduce dependency on Nvidia Corporation's costly AI chips.
South Korea Data Center Processor Industry Overview
The South Korean data center processor market is consolidated led by key players such as Intel Corporation, NVIDIA Corporation, Advanced Micro Devices, Inc., Samsung Electronics Co., Ltd., Ampere Computing LLC, and Arm Holdings PLC. These firms sustain their dominance by introducing cutting-edge technologies and solutions. To address growing demand and adhere to government regulations, they partner with cloud-based and colocation data center operators, delivering advanced CPUs, GPUs, and AI accelerators. Key industry participants, such as SK Telecom Co., Ltd., NHN Cloud Corporation, Equinix, Inc., Digital Edge DC, CapitaLand Group, KINX, Inc., KDDI Telehouse Corporation, and ST Telemedia Global Data Centres, have adopted these advanced processors. Amid the rising demand for data centers and the rapid integration of artificial intelligence, international companies are entering the South Korean market with advanced AI GPU-based facilities. In 2024, Luxembourg-based Gcore, in partnership with NHN Cloud, plans to launch a new data center in Incheon, South Korea. The facility will initially feature 320 Nvidia H100 GPUs across 40 servers, each equipped with 2 terabytes of storage, 112 CPU cores, and a bandwidth of 3.2 Tbps. By the end of 2024, Gcore aims to expand the center to over 1,000 GPUs, including H200s and GB200s, to meet growing market demands.
South Korea Data Center Processor Market Leaders
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Intel Corporation
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Advanced Micro Devices Inc.
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Ampere Computing
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NVIDIA Corporation
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Samsung Electronics Co., Ltd.
- *Disclaimer: Major Players sorted in no particular order
South Korea Data Center Processor Market News
- November 2024: SK Telecom Co., Ltd., a prominent South Korean telecommunications company, is advancing its AI capabilities with a AI data center in Seoul and a testbed facility in Pangyo, Gyeonggi Province, both powered by Nvidia Corporation's GPUs. To further support domestic businesses, SK Telecom Co., Ltd. is introducing a subscription-based AI cloud service and collaborating with Lambda Labs, Inc. to provide GPU-as-a-Service, utilizing Nvidia’s H100 and upcoming H200 GPUs. These efforts aim to create a unified AI infrastructure across South Korea by integrating regional data centers with GPU-as-a-Service solutions.
- August 2024: FuriosaAI Co., Ltd., an South Korean AI hardware startup, established in 2017 in Seoul, entered the AI hardware industry with its accelerator chips designed for hyperscale data centers and enterprises. The company introduced its advanced AI chip, "RNGD," which delivers a 100% power efficiency advantage over Nvidia Corporation's H100 GPUs while maintaining competitive performance. That same month, LG AI Research began incorporating RNGD into its AI infrastructure, aiming to reduce reliance on Nvidia chips and strengthen South Korea's AI semiconductor ecosystem.
South Korea Data Center Processor Industry Segmentation
Data centers house and manage critical applications and data, using computing and storage networks for efficient delivery. Processors—GPUs, CPUs, and TPUs—are central to their operation. GPUs handle multitasking, excelling in graphics rendering and AI tasks. CPUs, with multi-core architecture, support parallel processing. TPUs, designed for machine learning, stand out from GPUs, which have transitioned from graphics to AI applications.
The South Korea Data Center Processor Market is Segmented by Processor Type (CPU, GPU, FPGA, AI Accelerators), by Application (Advanced Data Analytics, AI/ML Training and Inferences, High Performance Computing, Security and Encryption, Network Functions, and Others), by Architecture (x86 and Non-x86 (ARM, Power and other processors), and by Data Center Type (Enterprise, Colocation and Cloud Service Providers). The Report Offers the Market Size and Forecasts for all the Above Segments in Terms of Value (USD).
| Market Segmentation - By Processor Type | GPU |
| CPU | |
| FPGA | |
| AI Accelerator | |
| Market Segmentation - By Application | Advanced Data Analytics |
| AI/ML Training and Inferences | |
| High Performance Computing | |
| Security and Encryption | |
| Network Functions | |
| Others | |
| Market Segmentation - By Architecture | x86 |
| Non-x86 (ARM, Power and other processors) | |
| Market Segmentation - By Data Center Type | Enterprise |
| Colocation | |
| Cloud Service Providers |
South Korea Data Center Processor Market Research FAQs
How big is the South Korea Data Center Processor Market?
The South Korea Data Center Processor Market size is expected to reach USD 1.86 billion in 2025 and grow at a CAGR of 29.82% to reach USD 8.89 billion by 2031.
What is the current South Korea Data Center Processor Market size?
In 2025, the South Korea Data Center Processor Market size is expected to reach USD 1.86 billion.
Who are the key players in South Korea Data Center Processor Market?
Intel Corporation, Advanced Micro Devices Inc., Ampere Computing, NVIDIA Corporation and Samsung Electronics Co., Ltd. are the major companies operating in the South Korea Data Center Processor Market.
What years does this South Korea Data Center Processor Market cover, and what was the market size in 2024?
In 2024, the South Korea Data Center Processor Market size was estimated at USD 1.31 billion. The report covers the South Korea Data Center Processor Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the South Korea Data Center Processor Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
South Korea Data Center Processor Industry Report
Statistics for the 2025 South Korea Data Center Processor market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Korea Data Center Processor analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.
