PDG plans major data center build-out in South Korea

South Korea's data center market is expanding fast, driven by cloud use, data-heavy apps, and rising security needs.

South Korea has become one of the more active markets for colocation services, helped by strong internet infrastructure and steady economic growth. Many companies see it as a practical entry point into Asia, especially as the need for reliable data capacity continues to rise.

Demand for cloud services and data-heavy applications has pushed the country's data center sector forward. Security needs have also grown, prompting more firms to look for facilities that can support high workloads while keeping their systems safe.

Statista's Market Forecast estimates that the South Korea data center market will expand by 6% from 2023 to 2028, reaching about US$7.99 billion by the end of that period. Research from Mordor Intelligence shows an even faster pace, with year-on-year growth of 15.83%. Together, these reports suggest that the country remains a promising place for companies that depend on large-scale computing.

Princeton Digital Group (PDG) has now entered this market, adding South Korea to its list of seven countries. The company plans to build several campuses that will total up to 500 MW of capacity for cloud and AI customers. The first project will be a 48 MW campus in Greater Seoul.

The site, called PDG SE1, will be in Incheon, about a 40-minute drive from central Seoul. It will cover roughly 11,000 square meters and is planned to open in early 2028. Power for the facility has already been secured, and construction is scheduled to begin later this month.

SE1 involves an investment of around US$700 million. The campus will be designed for hyperscale and AI needs, using high-density racks and cooling systems aimed at managing heavy workloads. The company says the design follows its plans for Net Zero by 2030 and its RE100 targets.

While South Korea has a strong digital economy, it also presents real challenges for companies that want to build large data centers. Land is limited, power grids can be tight, and permits take time. PDG says its expansion shows that it can handle these complex entry conditions by using a mix of strategies tested across other Asian markets. With backing from major global investors, the company aims to support hyperscale clients that need large, reliable capacity in the country.

"South Korea is one of Asia Pacific's most advanced digital economies and a critical market for cloud and AI hyperscalers. Our entry is part of a long-term plan to be a significant provider of AI and cloud data center capacity in the country," said Rangu Salgame, Chairman, CEO and Co-founder of PDG. "With this expansion, PDG continues to strengthen its position as one of the top pan-Asia operators serving the world's largest technology customers."

With the addition of SE1, PDG's total planned capacity now exceeds 1.2 GW across more than 20 campuses in seven countries. The company aims to support cloud and AI firms that continue to increase their compute needs in Asia's busiest growth areas.