CBRE Korea, “Korea’s Data Center Investment Appeal Rises Amid Expanding AI Demand and Supply Constraints, with Exit Potential Increasing for Prime Assets”

- Final approval rate for Power System Impact Assessments in the Seoul Metropolitan Area stands at 1.9%, highlighting scarcity of assets with secured power and locations
- 88% of investors expect data center prices to rise, with exit routes diversifying amid inflows of global capital

July 13, 2026 (Seoul) – CBRE Korea, the world's largest commercial real estate services company, announced that Korea’s data center market is emerging as a core asset class within the alternative investment market, driven by expanding AI demand, supply constraints and inflows of global capital, according to its report, “Korea Data Center Investment: Assessing the Scarcity Premium and Exit Potential Created by Supply Constraints.” In particular, as scarcity premiums increase for assets with secured power and high-quality tenants, the exit potential of prime data center assets is also drawing greater attention.

The report provides a comprehensive analysis of growing global data center demand amid the rise of generative AI and domestic supply constraints. It identifies the scarcity premium for assets with secured power and high-quality tenants, increasing interest from global investors and exit potential driven by a diversifying buyer pool as key investment considerations.

Global data center demand has entered a phase of structural growth following the rapid adoption of generative AI. According to the report, global data center power consumption is forecast to rise from approximately 200 TWh in 2015 to more than 1,100 TWh by 2030, while the share of AI workloads is expected to increase from 13% in 2025 to 29% in 2030.

Korea’s data center market has moved beyond its early stage, which was led primarily by domestic telecommunications companies, and has entered a more advanced phase led by asset managers and global specialist operators. Data center supply in the Seoul Metropolitan Area is expected to exceed 1,450 MW by 2028, but new development locations are increasingly being selected based on power availability. As a result, the market is shifting toward a “power-following” structure centered on areas where power can be secured.

As of March 2026, first-stage technical review applications for Power System Impact Assessments in the Seoul Metropolitan Area had reached 522 cases, representing 33,592 MW in total. However, only 10 cases received final approval for power supply, resulting in a final approval rate of just 1.9% of total applications. While these supply constraints pose risks for new developments, they are also viewed as factors that create scarcity premiums for data center assets in the Seoul Metropolitan Area that have already secured both power and location. In fact, the data center vacancy rate in the Seoul Metropolitan Area remains below 5%, while average colocation rents have risen by more than 70%, from approximately KRW 140,000/kW in 2019 to around KRW 250,000/kW in 2025.

Underlying the rise in data center rents in the Seoul Metropolitan Area is structural occupier demand, in which new supply is absorbed almost immediately. In particular, as demand-side players recognize the scarcity of supply and move to secure capacity in advance, even before completion, competition to pre-empt demand is accelerating. Global cloud service providers and major domestic tech platforms currently account for 88% of real demand and continue to lead the market. Going forward, the demand base is expected to expand further as potential AI-driven demand emerges from Chinese cloud service providers, neocloud providers, domestic financial institutions, public and sovereign AI initiatives, and major conglomerates.

At the same time, Korea’s policy environment and the expansion of the potential buyer pool are serving as favorable factors for the data center market. The Special Act on the Promotion of the Artificial Intelligence Data Center Industry, announced on June 9, includes key measures such as integrated permit processing, special provisions related to Power System Impact Assessments, direct supply of renewable energy and the designation of AI data center special zones. While the actual scope of application may vary depending on detailed implementation standards, the Act could lower barriers to new development in non-metropolitan areas while further strengthening the scarcity of assets with already-secured power in the Seoul Metropolitan Area.

In the investment market, exit potential is becoming more pronounced for prime assets. According to CBRE Korea’s 2026 Investor Intentions Survey, 88% of domestic investors expect data center asset prices to rise. As global infrastructure capital and specialist data center capital are expected to increase their presence in the market, exit routes are likely to diversify, particularly for assets with secured power and high-quality tenants. However, the report emphasizes that as data center cap rates in Korea have already reached levels similar to those of major gateway cities in Asia Pacific, investors must also review lease structures, operating models and the risk of physical obsolescence resulting from the advancement of AI servers.

The report forecasts that Korea’s data center market will develop in stages: a period of heightened recognition of supply scarcity in 2026–2027, a period of increased transaction activity in 2028–2029 and a period of investment stabilization from 2030 onward. As available assets decline, scarcity premiums expand and inflows of global capital increase, transaction and exit opportunities are also expected to grow, centered on prime assets.

Claire Choi, Senior Director, Head of Research at CBRE Korea, said, “Korea’s data center market is at an inflection point where investment appeal and exit potential are both gaining attention amid the convergence of expanding global AI demand, supply constraints and capital inflows. Going forward, we expect investment interest from global infrastructure capital and specialist data center capital to increase, particularly for assets with secured power, prime locations and high-quality tenants. However, given that data centers are highly affected by facilities, operations and technological change, investors need a precise investment strategy that comprehensively reviews lease structures, renewal potential and the costs required to respond to technological obsolescence.”