With brand-new supply constrained, execution abilities acquire value as IGIS Asset Management develops on its advancement experience in Hanam and Samsong.
Financier expectations for development in South Korea’s information center market are increasing, however equating that possible into financial investment returns stays an obstacle. Power restrictions and allowing difficulties are restricting brand-new supply, while tasks that begin needs to still advance through building to steady operations. Together with an understanding of need, property supervisors’experience in handling dangers throughout advancement and operations is ending up being significantly essential.
Why Korea’s Data Center Market Is Attracting Attention
Need for digital facilities from domestic and worldwide organizations is underpinning development expectations for Korea’s information center market. International cloud provider are broadening their existence in the nation, while the expansion of data-intensive services– consisting of expert system, self-governing driving and the Internet of Things– is driving need for information processing, storage and computing capability. Information centers are progressing from centers that support digital services into necessary facilities for AI adoption throughout markets.
Financiers’ expectations for property cost gratitude show this outlook. According to CBRE Korea’s 2026 Korea Investor Intentions Survey, 88% of Korean participants anticipated information center possession costs to increase– the greatest percentage amongst the possession classes surveyed. Leas have actually likewise increased. Typical information center colocation leas in the Seoul city increased by more than 70%, from around KRW 140,000 per kW in 2019 to around KRW 250,000 in 2025.
Broadening supply to satisfy this need, nevertheless, stays challenging. Protecting access to the power grid is a significant obstacle for brand-new advancements, especially in the Seoul city. According to information from the Ministry of Climate, Energy and Environment, just 10 of 522 information center technical evaluation applications sent under the city’s power grid effect evaluation procedure in between August 2024 and March this year got last approval for power supply– a rate of simply 1.9%. With information center job in the area staying listed below 5%, problems in protecting power continue to constrain brand-new supply.
This space in between need and supply might develop financial investment chances for information centers with the needed structures for advancement. Power supply approval is just one action. Structure licenses, style and building, expense and schedule management, and occupant acquisition all stay crucial. Turning Korea’s development capacity into financial investment returns needs both an understanding of need and the experience to handle advancement threats and run properties dependably.
Picture: IGIS Asset Management Headquarters
IGIS Asset Management’s Data Center Track Record in Korea
Versus this background, IGIS Asset Management is broadening its digital facilities financial investment platform, making use of its experience as the only Korean property supervisor to have actually finished the complete information center financial investment lifecycle, from advancement and operations through to leave. It is likewise the only Korean property supervisor with a track record of finishing at least 2 hyperscale information.
The Hanam information center shows this end-to-end experience. IGIS supervised land acquisition, allowing, advancement and operations before offering the possession to Macquarie Korea Infrastructure Fund in 2024. The task showed the company’s capability to bring a financial investment beyond building into operations and an ultimate exit.
Experience acquired in Hanam is notifying subsequent jobs. In March in 2015, IGIS began on a 40 MW hyperscale information center in Choji-dong, Ansan, Gyeonggi Province. The job, being established on a website of around 11,796 square meters, is targeting conclusion in the 2nd half of 2027. In July this year, the company finished a hyperscale information center in Samsong, Goyang, with an inbound power capability of 80 MW.
IGIS objectives to construct an information center portfolio amounting to 520 MW and KRW 13 trillion in properties under management by 2031.
Hong Chang-ui, head of business Part within IGIS Asset Management’s Digital Business Group
From Individual Data Centers to Digital Infrastructure
IGIS views information centers as digital facilities supporting service operations and society’s digital activities. Big centers dealing with extensive calculating work, edge centers serving applications that need quick reaction times, and backup centers supporting catastrophe healing each have various area and technical requirements. A business’s facilities requirements can not constantly be satisfied by a single center. To resolve this, IGIS is pursuing its “Sphere” principle, linking information centers with complementary functions into a network that can react to clients’ requirements in a collaborated method.
This technique likewise notifies its area method. Latency-sensitive applications need centers near end users, whereas AI training and backup centers can be situated further away. IGIS anticipates information center areas to end up being significantly distinguished by function, extending beyond the existing concentration in the Seoul city. The company is likewise pursuing jobs in southeastern Korea, where power schedule and connection through worldwide subsea cable television landing centers support advancement.
The target audience should be specified at the preparation phase. Efficiency requirements and styles differ significantly by utilize case, and modifications throughout advancement can include substantial expenses. As a supervisor of third-party capital, IGIS looks for to recognize its designated clients and their requirements from the beginning, contending on a plainly specified and distinguished offering instead of mostly on rates or returns.
Advancement unpredictability provides another obstacle. Tasks normally take 3 to 5 years from preparing to conclusion, and dependence on imported important devices leaves schedules exposed to provide chain traffic jams. Preparations for some devices that might at first be obtained in around 10 months have actually consequently extended to as long as 2 years. AI-related technical requirements continue to develop. Property supervisors should equal technological and market advancements, line up the interests of financiers, loan providers, specialists and operators, and integrate these modifications into task shipment. Making use of its advancement and property management experience in workplaces, logistics and other sectors, IGIS sees the future of digital facilities in integrating recognized realty know-how with digital abilities throughout property classes.
“Data centers are a core engine of AI and the digital economy, in addition to necessary facilities,” stated Hong Chang-ui, head of business Part within IGIS Asset Management’s Digital Business Group. “Building on our experience in taking Hanam through advancement, operations and sale, together with the conclusion of Samsong, we will reinforce execution throughout our subsequent jobs and develop an information center portfolio that satisfies the requirements of worldwide institutional financiers.”
To find out more, go to IGIS Asset Management’s site and LinkedIn page
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