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South Korea AI Infrastructure Market Insights 2026 to 2035

The South Korea AI infrastructure market size was calculated at USD 2.58 billion in 2025 and is projected to reach at USD 26.75 billion by 2035, reflecting a CAGR of 26.35% during the forecast period of 2026 to 2035. Investment in the AI data center, high-performance computing system, high-performance AI semiconductor, cloud infrastructure and the next-generation network technologies is pushing the South Korea AI infrastructure market.

South Korea AI Infrastructure Market Revenue 2025 to 2035

The well-developed semiconductor ecosystem in South Korea, which is represented by premier companies such as Samsung Electronics and SK hynix, is reinforcing South Korea's capacity to establishing a comprehensive AI infrastructure spectrum, ranging from High bandwidth memory, AI accelerators, GPU computing, data storage and intelligent data center technologies. Government initiatives in terms of enhancing the national AI computing capacity, promoting autonomous AI infrastructure development, driving the AI adoption in the industrial arena and improving the domestic AI infrastructure would also have supported this market. 

The growing adoption of generative AI, physical AI, intelligent robot, smart manufacturing, autonomous transportation, smart public services is in turn driving high demands for investment in scaling computing, high energy-efficient data centers, advanced cooling technologies, low latency high-speed networks and edge AI infrastructure. 

Can South Korea Become the Global Leader in Physical AI Infrastructure?

South Korea is well-positioned to become one of the world's leading Physical AI infrastructure hubs due to its world-leading semiconductor industry, robotics ecosystem, expanding AI data centers, and manufacturing strengths. Unlike existing forms of AI, Physical AI allows autonomous machines, like humanoid robots and industrial robots, autonomous vehicles, drones, and smart factory systems, to be able to perceive, reason, and act upon the physical world in real-time.

The country is in a leading position as it can integrate every layer of the physical AI value chain. Leading global companies such as Samsung electronics, SK hynix, Hyundai motor group, LG electronics, Doosan robotics, Rainbow Robotics, NAVER cloud, SK telecommunications are already all investing huge amounts in AI chips, robots, autonomous vehicles, AI cloud platforms and hyperscale computing infrastructure. 

Why South Korea has a huge competitive advantage?

  • World-leading AI memory ecosystem: South Korea is the home of Samsung electronics, and SK hynix; two leaders in chip manufacturing that currently hold dominant positions in HBM (High Bandwidth Memory) the crucial technology powering NVIDIA's latest AI GPUs and Physical AI workloads. Demand for HBM3E and developing HBM4 is increasing the importance of South Korea in the global AI infrastructure market.
  • Huge AI infrastructure investments: NVIDIA and the SK group announced over $500 billion in investments in the month of July 2026 into next generation AI data centers, memory development, AI factories and sovereign AI infrastructure; this plan involves a gigawatt scale AI data center with NVIDIA's Vera Rubin architecture and SK hynix HBM4 memory, set to launch a year later in 2027.
  • Expanding Sovereign AI factories: NAVER have announced in collaboration with NVIDIA and Brookfield further expansion plans for their AI factory ecosystem. Their GAK Sejong AI campus is scaling from over 55 MW towards gigawatts of AI infrastructure to accommodate industry, robotics and public sector needs.
  • Large-scale deployment of NVIDIA GPUs: around 260,000 NVIDIA GPUs have been confirmed plans for South Korea as they continue to invest in private/public partnerships to build out the country's computing centers, AI clouds, training for robots and industrial AI applications.

Recent Breakthroughs

Recent Breakthrough / Development Key Details & Impact on AI Infrastructure Market
NVIDIA and South Korea Build Large-Scale AI Infrastructure Ecosystem NVIDIA partnered with the South Korean government and leading industrial companies to deploy more than 260,000 NVIDIA GPUs across national AI computing centers, cloud providers, semiconductor companies, and industrial AI applications. The initiative aims to accelerate AI factories, physical AI, robotics, autonomous systems, and sovereign AI capabilities.
SK Group and NVIDIA Announce $500 Billion+ AI Infrastructure Partnership SK Group and NVIDIA expanded their strategic collaboration with an investment initiative exceeding $500 billion, covering AI factories, next-generation memory, and large-scale computing infrastructure. The partnership includes plans for a 2 GW AI factory powered by NVIDIA Vera Rubin architecture to support future AI workloads.
SK hynix Plans KRW 400 Trillion Semiconductor and AI Infrastructure Investment SK hynix announced plans to establish a major semiconductor cluster in South Korea’s southwestern region with approximately KRW 400 trillion investment. The company also revealed a roadmap for building 15 GW of AI data center infrastructure nationwide to support growing AI computing demand.
South Korea Accelerates AI Factory Development Samsung Electronics, SK Group, and Hyundai Motor Group are developing AI factories equipped with tens of thousands of GPUs. These facilities are designed to support AI model training, semiconductor design, robotics simulation, digital twins, and autonomous manufacturing. 
Development of National AI Computing Centers The South Korean government is investing in sovereign AI infrastructure by expanding domestic GPU capacity and supporting cloud providers including NAVER Cloud, Kakao, and NHN Cloud. These initiatives aim to reduce dependence on overseas AI infrastructure providers.
Rise of Regional AI Infrastructure Hubs Beyond Seoul South Korea is expanding AI infrastructure investments beyond traditional technology hubs around Seoul due to increasing land, electricity, and capacity requirements. New semiconductor clusters and AI data center developments are emerging in regions such as Yongin and southwestern Korea.
Samsung Strengthens AI Semiconductor and Data Center Ecosystem Samsung Electronics continues expanding its AI infrastructure role through semiconductor manufacturing, advanced memory development, AI chip capabilities, and partnerships supporting global AI data center growth. The company’s AI-related semiconductor business has benefited from rising demand for HBM and AI computing components.
AI Cloud Platforms Gain Momentum in South Korea Domestic cloud providers are expanding AI infrastructure services to support enterprise adoption of generative AI, AI agents, industrial automation, and data-driven applications. NAVER Cloud, Kakao, and NHN Cloud are becoming important players in South Korea’s sovereign AI ecosystem.
Next-Generation AI Memory Collaboration Between NVIDIA and SK hynix SK hynix and NVIDIA announced a multi-year technology partnership focused on next-generation memory solutions, including HBM development for future AI factories, AI supercomputers, and physical AI platforms.
  • Migrating from data centers to AI factories: South Korea is moving away from traditional data storage sites to facilities built specifically to train/perform large AI models and their integration into the physical world. The government has already pledged to build 8.4 GW of data center capacity to enable artificial intelligence capabilities by 2029 and boost the overall capacity to nearly 18.4 GW by 2035 with more than $650 billion from private and public entities going into AI infrastructure, semiconductors, and the adjacent industry space. 
  • Rapid growth in the AI data center investments: The increased demand for generative AI and enterprise AI platforms is spurring major investments in new hyperscale data centers in South Korea. 
  • Advancing the AI semiconductor ecosystem using a leadership in HBM: Given that South Korea dominatez the market inHigh Bandwidth Memory(HBM), Samsung Electronics andSK Hynixare taking advantage of their position by further scaling investments in AI semiconductors and facilities to bolster their domestic AI market share and increase their lead in the global market. 
  • Emphasis on the Sovereign AI Infrastructure: The country seeks to lessen its reliance on other countries for AI computing infrastructure by developing a domestic one, investing heavily in nationwide AI computing facilities, national AI platforms, fundamental AI models, and local AI ecosystems to facilitate its public sector, private corporations, and industries. 

How Are Korean Companies Building Sovereign AI Infrastructure to Reduce Global Dependence?

South Korea is pushing hard to develop its own AI sovereign infrastructure, aiming to break away from its dependence on AI, cloud, and computing ecosystems supplied by foreign countries. South Korea’s objective is to establish a home-based capability in AI modeling, high performance computing (HPC), semiconductors, and cloud computing infrastructure. 

For their part, the Ministry of Science and ICT (MSIT) is subsidizing a national effort to develop Korean AI foundational models. This approach has drawn interest from companies such as NAVER, SK Telecom, LG AI Research, Upstage, and NC AI to bring their models under the banner of “national-level” foundational models.

Leading South Korean firms like Samsung Electronics, the SK group, the Hyundai Motor Group, and NAVER Cloud will deploy industrial AI factories that, powered by homegrown chips, will serve needs including artificial intelligence, robotics, self-driving and the manufacturing segment.

Segments Covered

By Deployment Model

  • Cloud-based AI Infrastructure
  • On-Premise AI Infrastructure
  • Hybrid AI Infrastructure

By Application

  • Generative AI
  • AI Data Center & HPC
  • Physical AI & Robotics Infrastructure
  • Edge AI 

By End Use Industry

  • Semiconductor & Electronics
  • Automotive & Mobility
  • Manufacturing
  • Telecommunication
  • Healthcare
  • Government & Defense

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