Internet Data Center Market in China - Investment Analysis & Growth Opportunities 2024-2029

MARKET OUTLOOK

The Internet data center market size in China will witness investments of USD 77.37 billion by 2029, growing at a CAGR of 12.17% during the forecast period. As of 2023, China is a dominant force in the APAC data center sphere, contributing to about 14.3% of total global data center investments and representing around 45.4% of the APAC region's investments in this sector. Further, China's Internet data center market is driven by the consistent demand aided by digitalization initiatives and the presence of all major cloud operators such as Microsoft, AWS, Alibaba Cloud, Huawei Cloud, and Tencent Cloud.

After the United States, China is the second top data center market globally. Some data center operators operating in China's Internet data center market include Princeton Digital Group (PDG), China Unicom, China Mobile, China Telecom, GSD Services, Chindata Group, and many others. Furthermore, China’s digital economy contributes about 41.5% to the country’s GDP, with a YoY growth of 10.3%, as of 2022, with the market consisting of over a billion internet users, where data centers are built to support digital initiatives by local businesses and the government, to aid to the growing tech-savvy population. Also, the region is considered a global financial center due to its robust connectivity via sophisticated modern technology.

KEY HIGHLIGHTS

1. China's government has approved around ten national data center clusters. The National Development and Reform Commission (NDRC) and other Chinese authorities have also announced plans to build computing centers in several provinces and develop data center clusters.
2. As part of its East-to-West plan, the Chinese government aims to transfer data from the eastern part of the country to the western part to develop the data center market in the western region.
3. China is a relatively inexpensive market for developing a data center facility compared to other countries. As of 2023, the data center construction cost ranges between USD 7 million and USD 9 million per MW, projecting a YoY growth of between 3% and 5%.
4. China has over 20 operational submarine cables. Five upcoming ones are expected to be deployed during 2024-2025. The Southeast Asia-Japan Cable 2 (SJC2) is the longest cable coming up, spanning about 6,524 miles, connecting China with Japan, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
5. China Unicom, China Telecom, and China Mobile, among others, are among the top and the largest colocation data center operators in the Internet data center market in China and are developing data centers across the country with over 1,500 MW power capacity.
6. Key big data and IoT players in China include- Alibaba Group, Tencent, Huawei Technologies, HCL Technologies, Fugumobile, ThunderSoft, Xiaomi Group, Lenovo Group, iSoftStone Smart Technology, ZTE Corporation and many others.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size is available in terms of investment, area, power capacity, and China's colocation market revenue.
2. An assessment of the data center investment in China by colocation, hyperscale, and enterprise operators.
3. Investments in the area (square feet) and power capacity (MW) across regions in the country.
4. This report details a detailed study of the existing China Internet data center market landscape, an in-depth industry analysis, and insightful predictions about the Internet data center market in China’s size during the forecast period.
5. The Internet data center market in China's landscape investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
6. This is a comprehensive analysis of the latest trends, growth rates, potential opportunities, growth restraints, and market prospects.
7. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
8. A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

1. Some of the key colocation investors in the Internet data center market in China in 2023 are China Telecom, China Mobile, China Unicom, Chayora, GDS Services, Chindata Group, Dr. Peng’s Telecom and Media Group, Shanghai Atrium (athub), China International Capital Corporation (CICC), VNET Group, Kehua Data, Sinnet, among others.
2. In 2023, Chindata Group declared its desire to transform into a privately held firm via a revamped and enhanced arrangement worth USD 3.16 billion. This game-changing decision is the result of coordinated talks with Bain Capital. China Merchants Group also expressed interest in the Chinese data center operator at this time.
3. In 2023, Tencent Holdings is steadily progressing toward constructing China's largest data center. According to Wang Zhixin, deputy director of the Yangtze River Delta Artificial Intelligence Advanced Computing Centre, a collaborative endeavor between Tencent Holdings and Shanghai's Songjiang district, four buildings have already been completed.
4. Amazon Web Services, Alibaba Cloud, Microsoft, Tencent Cloud, and Huawei Cloud are the cloud operators with their own dedicated cloud regions in China, with multiple availability zones in cities like Beijing, Shanghai, Nanjing, and others.

REPORT COVERAGE:

This report analyses the Internet data center market in China share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

1. IT Infrastructure
2. Servers
3. Storage Systems
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH
17. Chillers
18. Cooling Tower and Dry Coolers
19. Economizers & Evaporative Coolers
20. Other Cooling Units
21. General Construction
22. Core & Shell Development
23. Installation & commissioning Services
24. Building & Engineering Design
25. Fire Detection & Suppression Systems
26. Physical Security
27. DCIM
28. Tier Standard
29. Tier I & Tier II
30. Tier III
31. Tier IV
32. Geography
33. East
34. West
35. North
36. South

VENDOR LANDSCAPE

1. IT Infrastructure Providers: Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur, Lenovo, Pure Storage, Quanta Cloud Technology, Wistron Corporation.
2. Data Center Construction Contractors & Sub-Contractors: AECOM, ATS Global, Aurecon, China State Construction, China Electronics Engineering Design Institute, China Railway Construction, Jiangxi Construction Engineering, MCC Group, Tianjin Construction Engineering Group, Zhejiang Cloud Valley.
3. Support Infrastructure Providers: ABB, AIRSYS, Caterpillar, Cummins, Delta Electronics, Eaton, Fuji Electric, Hangzhou Kencool Intelligent Technology, HITEC Power Protection, Legrand, Mitsubishi Electric, Pillar Power Systems, Rittal, Rolls-Royce, Schneider Electric, Shenzhen KSTAR Science and Technology, STULZ, Vertiv.
4. Data Center Investors: Alibaba Group, Chayora, China Mobile, China International Capital Corporation (CICC), China Telecom, China Unicom, Chindata Group, Dr. Peng’s Telecom & Media Group, EdgeConneX, GDS Services, Haoyun Changsheng (Hotwon), KEHUA Data, Keppel Data Centres, Shanghai Atrium (athub), Sinnet, Tencent, VNET Group.

TARGET AUDIENCE

1. Real Estate Investment Trusts
2. Construction Contractors
3. Infrastructure Providers
4. New Entrants
5. Consultants/Consultancies/Advisory Firms
6. Corporate and Government Agencies