AI data centers — and the power to run them — have become some of the most sought-after Korean assets for global private capital such as the New York-headquartered KKR and Brookfield Asset Management as well as the Sydney-based Macquarie Asset Management.
With the combined investments pledged by the asset manager trio and their partners topping at least $10 billion over the coming years, institutional investors are expected to play an increasingly important role in Korea's data center market.
That shift is already reflected in the changing investor mix. The share of investment in Korea's data centers held by financial investors — presently behind telecommunications and related companies —is projected to swing sharply, from 17 percent between 2020 and 2023 to 90 percent from 2024 to 2027, according to Samil PwC, underscoring the growing role of institutional capital in developing the country's AI infrastructure. The share held by the current leaders is projected to fall to 10 percent from 83 percent.
Korea’s private commercial data center market was valued at 3.6 trillion won ($2.65 billion) last year and is projected to grow 54 percent to 5.56 trillion won by 2028, the data further showed.
"The evolution of supply drivers is a key catalyst reshaping data center asset values," according to CBRE Research in a July report on Korea's data centers. "The influx of global funds and specialized developers has enabled large-scale capital raising and the adoption of advanced operational standards, positioning data centers in the initial stages of securing a foothold as an independent, core yield-generating asset class."
KKR deepens ties with SK
Visitors look at AI data center technologies at SK Telecom’s booth during World IT Show 2026 on April 22.NEWS1
KKR, the world's largest private equity fund in terms of capital raised over the past five years, has deployed more than $5 billion over the past six years across energy, utility and digital infrastructure in Korea, according to a source with knowledge of the matter.
"KKR remains highly constructive on Korea's data center market, given the scale of AI, semiconductor and electrification-driven demand and need for private capital behind it," the source said. KKR "expects continued interest from global institutional investors as the opportunity in Korea's digital and energy infrastructure continues to broaden."
In August, KKR agreed to take a 29 percent stake in SK Horizon as a minority financial investor, joining a consortium of Seoul-based IMM Investment and Stonebridge Capital in a combined 3.08 trillion won deal for 49 percent of SK Horizon, a new AI data center infrastructure company spun off from SK Broadband due to be established in February of next year.
The move follows KKR's partnership with SK Group in July, with the New York firm claiming a 51 percent stake in a new renewable energy venture that is expected to be valued at 2 trillion won, representing the private equity giant's deepening bet on clean energy and AI infrastructure. The platform, of which SK will own 49 percent, will integrate renewable businesses and assets from several subsidiaries under SK Group.
The latest deal involving SK Horizon will expand its infrastructure to a total capacity of 318 megawatts, encompassing eight data centers already in operation by SK Broadband and new AI data centers currently under construction, including those in Guro District, western Seoul, and Ulsan.
“SK Horizon brings together an established operating platform, capacity under development and a strong strategic partner," said Keith Kim, a partner at KKR. "Korea’s advanced digital ecosystem and growing demand for AI capacity provide a strong foundation for SK Horizon’s next phase of growth."
Naver-Nvidia-Brookfield union
KKR is not alone in expanding its exposure to Korea’s AI infrastructure. In July, Brookfield also partnered with Naver to provide up to $9 billion to finance an AI infrastructure expansion alongside a $1 billion investment in the Korean tech giant by Nvidia. Under the project, Naver's data center in Sejong will be expanded from the current 55 megawatts to 200 megawatts by 2028.
Brookfield plans to invest in a special purpose vehicle (SPV) that will purchase Nvidia GPUs and acquire data center assets, according to an electronic filing by Naver. The SPV will sell computing capacity to the operator of Naver’s AI factory.
“Brookfield contributes capital and infrastructure expertise while Naver contributes AI, cloud and data center operating capabilities,” Jun Park, Brookfield's Korea head, told the Korea JoongAng Daily of the deal. “Partnering with an established local technology leader also provides greater certainty around demand and operations."
Brookfield’s investment follows two earlier investments by its subsidiary, DCI Data Centers, in the greater Seoul area.
Brookfield's investment in Korea’s AI infrastructure, such as data centers, is expected to only increase as the asset manager plans to increase its assets under management in Korea to around 30 trillion won by 2030 from the current 17 trillion won.
Some have taken more direct exposure to data centers. Singapore-based Keppel, for example, announced in June its entry into Korea’s data center market after one of its private funds secured land in Ansan, Gyeonggi, for a 60-megawatt greenfield data center aiming to be ready for service by 2030. The fund will acquire a 73 percent stake in a SPV that owns the land.
Macquarie Asset Management took a similar asset-level approach earlier, acquiring a data center in Hanam, Gyeonggi, developed by Seoul-based Igis Asset Management. Macquarie acquired the asset through the Macquarie Korea Infrastructure Fund for 734 billion won in 2024. In March, the company said it will invest roughly $420 million to supply a data center infrastructure platform with Gabia, a cloud-specialized information technology company that it is trying to acquire.
“Korea’s infrastructure market is picking up as AI drives a surge in capital spending,” said Lee Kyung-ja, an analyst at Samsung Securities. “Investors are focusing on AI data centers and the power infrastructure needed to support them, while global private equity firms are moving beyond the highly consolidated waste management sector they focused on in 2020 and 2021 into data centers, LNG and renewable energy.”
A view of the server room at Naver's Gak Sejong data centerNAVER
Power scarcity pushes data centers beyond Seoul
Strong investor interest persists despite structural constraints in the local market that could weigh on returns.
Power availability is a major constraint on new data center development. As of March, 522 data center projects had applied to the Korea Electric Power Corporation for a first-stage review to determine whether the power grid could accommodate them. Of those applications, only 10 had received final approval for power supply, according to CBRE.
"AI data centers require much larger amounts of power than conventional colocation facilities," said Choi Kyu-jung, a research analyst at Rsquare Research Center, referring to a shared data center facility where different customers house their servers and equipment, "increasing the likelihood that investment will expand into regions outside the capital area."
“For data centers in regions where power is relatively easier to secure, the key question is whether there is firm, long-term demand for that power. If an anchor tenant is secured and sufficient power is available, we could see significant data center investment outside the capital region as well,” Choi added.
Another constraint is the country’s unique lease structure. Unlike the United States, where long-term investors such as listed real estate investment trusts (REIT) can hold data centers for decades and sign 15- to 20-year leases, Korean investors typically target an exit within three to seven years.
That leaves investors with little time to benefit from rising rents. New facilities often offer discounted rent during the initial ramp-up, when occupancy and revenue are still building toward full capacity, while annual rent increases are typically around 2 percent.
Still, the growing presence of global specialized investors could provide a broader pool of potential buyers when investors seek to exit.
“Global data center REITs and hyperscale operators are expanding direct ownership within Asia Pacific, establishing a robust global buyer layer for capital region assets under development,” said CBRE. “Investors should leverage the scarcity value of their presecured power assets to pre-emptively capture this expanding global buyer pool.”
