China Data Center Market, By Infrastructure (IT Infrastructure, Electrical Infrastructure), By Type (Enterprise Data Center, Managed Services Data Center, Colocation Data Centers, Cloud Data Centers), By Tier Standards (Tier I and II, Tier III, Tier IV), By End User (BFSI, Telecom and IT, Media and Entertainment, E-Commerce, Government, Healthcare, Others) Trend Analysis, Competitive Market Share & Forecast, 2017-2027
- Published Date: October 2021
- Report ID: BWC21129
- Available Format: PDF
- Page: 117
Report OverviewChina data center industry is thriving as a result of driving factors such as increased data center development and a growing number of small and large organizations rapidly migrating to cloud computing for business activities.
China Data Center Market- Industry Trends & Forecast Report 2027
The China data center market was worth USD 13.2 billion in 2020 and is further projected to reach USD 45.2 billion by the year 2027, growing at a CAGR of 19.3% during the forecast period. Due to the increasing construction of data centers and many small and large companies switching rapidly to cloud computing for their business processes, China has become the world's largest data center market. Moreover, the increasing penetration of 5G and the introduction of IoT devices are also expected to drive growth in the China data center market.
Source: BlueWeave Consulting
China Data Center Market- Overview
Datacenters are spaces or infrastructures for storing large amounts of data, such as telecommunications and storage systems. These data centers hold a large range of components such as switches, storage systems, servers, routers, security, data cooling systems, etc., that are used for managing and smooth functioning of the data storage. Data centers centralize a company or organization’s IT operations to store, process and disseminate data and applications. However, the construction and management of data centers is an extremely expensive business.
China Data Center Market Forecast and Trends
Increasing Volume of Data and Shift Towards Cloud Computing
The volume of data is exponentially increasing with the increasing penetration of smartphones, tablets, IoT devices such as sensors, wearables, etc. Furthermore, the introduction of cloud computing and the expanding need to access data remotely fuel the need for efficient data centers. Additionally, the rapid shift of small and large organizations towards cloud computing for their business operations also propels the demand for data centers, further contributing to its market growth.
Increasing Construction of Data Centers in China
There are around 5 million data centers in China. With the increasing volume of data, China is significantly investing in the construction of more data centers to support the growing needs. Not only that, but it is also focusing on cutting down its operating costs and carbon emission to emerge as the leading data center country. To become the leading data center country, the country is also focusing on reducing its operating costs and greenhouse gas emissions. For example, China is working on building undersea data centers to reduce cooling costs. Such experiments are likely to drive the China data center market in the forecast period.
High Initial Investment and Management Cost
Data centers are extremely efficient and play a significant role in boosting the country’s economy. However, the cost involved in the construction, as well as management of the data centers, may act as a major restraining factor for the China data center market. It is estimated that the average enterprise data center costs between USD 10 million and USD 12 million per megawatt. Large-scale data centers consume the same amount each year. This poses a threat to the growth of the China data center market.
Impact of COVID-19 on China Data Center Market
The unprecedented outbreak of the COVID-19 pandemic tremendously flourished in the China data center market. China was one of the worst affected countries by the pandemic as the virus emerged from this region only. As people were impeded from working from home, internet usage amplified several-fold and the amount of data jumped higher than expected. Many organizations, regardless of their sizes, shifted towards cloud computing. As a result, the demand for effective data centers to manage the massive amounts of data is growing, propelling the China data center market forward.
China Data Center Market - By Infrastructure
Based on infrastructure, the China data center market is segmented into IT infrastructure and electrical infrastructure. The IT infrastructure holds the largest share in the China data center market. This segment is further classified into servers, storage, and network. Servers make up the majority of these components, as they are responsible for supplying the processing, memory, local storage, and network connectivity that enable applications to run. The speed and latency of data transmissions are directly affected by server processing.
China Data Center Market - By Type
Based on type, the China data center market is segmented into enterprise data centers, managed services data centers, colocation data centers, and cloud data centers. The enterprise data center holds the largest market share as the large organizations often opt to have their own stand-alone data centers which prove to be efficient as well as secure in terms of data security. However, colocation data centers are gaining huge popularity among small and medium-sized businesses in China. The rise of colocation data centers in China is being fueled by the increased construction of colocation data centers for data storage services based on the volume of data and the financial capacity of the business.
China Data Center Market - By Tier Standards
Based on tier standards, the China data center market is segmented into tier I and II, tier III, and Tier IV. The Tier III segment accounts for the largest market share as it is the most commonly used data center tier by organizations. Teri III data centers hold redundant and dual-powered servers, storage, network, storage links, and other IT components. This type of tier standard uses multiple, active, independent sources of power cooling resources. Therefore, it has a rundown time of 1.6 hours annually which proves to be very efficient for organizations. Tier I and Tier II are also popular data center tier standards.
China Data Center Market - By End-Use
Based on end-use, China data center market is segmented into BFSI, telecom and IT, media and entertainment, e-commerce, government, healthcare, and others. Among these, the BFSI segment holds the largest market share as the banking and financial sector needs to keep their operations running 24 x 7. Any interruptions in BFSI data transmission and reception will snowball and have a direct impact on the country's economy. Following BFSI, e-commerce has a significant market share due to blooming online enterprises and increasing smartphone usage.
The leading players in the China data center market are Tencent Holdings Ltd., Alibaba Cloud, Fujitsu Ltd., China Mobile Limited, Digital Realty Trust Inc., China United Network Communications Group Co. Ltd., SUNeVision Holdings Ltd., China Telecommunications Corporation, Equinix Inc., Centrin Data Systems Co. Ltd., and other prominent players.
The China data center market is highly fragmented with the presence of various industry participants. However, it is still welcoming to the new entrants who offer reliable data center services. The companies are based on technology, space, and data handling capacity. They also spend significant amounts on data center construction to expand their business capacity. Furthermore, the adoption of competitive strategies like mergers, acquisitions, partnerships, collaborations, etc., is also prominent in this market.
- In September 2021, Huawei announced to have brought phase one of its Gui’an cloud data centers online in Guizhou province, China.
- In September 2021, Chinadata Group announced plans to be exploring and develop ‘zero carbon’ data centers after becoming the first digital infrastructure participant in the UN’s Global Compact initiative.
Scope of the Report
Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
Revenue in USD Billion
By Infrastructure, By Type, By Tier Standards, By End User
Tencent Holdings Ltd, Alibaba Cloud, Fujitsu Ltd, China Mobile Limited, Digital Realty Trust Inc., China United Network Communications Group Co. Ltd, SUNeVision Holdings Ltd, China Telecommunications Corporation, Equinix Inc., Centrin Data Systems Co. Ltd, and other prominent players.
- IT Infrastructure
- Electrical Infrastructure
- UPS Systems
- Transfer switches and switchgears
- Rack PDU
- Enterprise Data Center
- Managed Services Data Center
- Colocation Data Centers
- Cloud Data Centers
By Tier Standards
- Tier I and II
- Tier III
- Tier IV
By End User
- Telecom and IT
- Media and Entertainment
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