The China Data Center Market Size, Share, Trends, & Investments By IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, General Construction, & Tier Standard.

China Data Center Market - Investment Analysis & Growth Opportunities 2026-2031

CHINA DATA CENTER MARKET SIZE & OUTLOOK

The China data center market size was valued at USD 60.69 billion in 2025 and is expected to reach USD 101.47 billion by 2031, growing at a CAGR of 8.94% during the forecast period. China is one of the well-established data center markets in the APAC region that is witnessing rapid data center growth year-on-year, fuelled by multiple growth factors, such as, continuous advancements in Artificial Intelligence and Machine Learning, surge in cloud computing adoption, expansion of sub-marine and inland cables, rising demand for digitalization, government support for data centers, strict data regulation laws, adoption of sustainability measures among data center operators and cloud companies, and other growth factors.

Owing to the rapid surge in demand for processing Artificial Intelligence workloads, data center companies are increasing rack power densities and investing to install advanced liquid cooling techniques and the clusters of Graphic Processing Units in their data centers to support Artificial Intelligence workloads efficiently. For instance, in September 2025, Alibaba Group supplied more than 23 thousand domestically manufactured Graphic Processing Units to China Unicom to install in its Xining data center facility in Qinghai province of China. The demand for advanced graphics processing units is slated to increase significantly in the China data center market during the forecast period.

The Cumulative power capacity of China data center market from 2026 to 2031 is anticipated to reach to around 21,600 MW, growing with an absolute growth rate of around 81.15% from 2025 to 2031.

The major cloud service providers like Alibaba Group, Huawei, and others are continuously investing in China to expand their cloud and Artificial intelligence service offerings across the country. For example, in September 2025, Alibaba Group secured a fund of around $3.2 billion to expand the company’s data center, cloud computing and other digital capabilities. The demand for cloud computing services is increasing rapidly across China as the businesses across wide range of industries are shifting their workloads to cloud platforms for better efficiency. For example, in August 2025, the World Aquatics Organization that specializing in organizing water sports competitions, collaborated with Alibaba Group to migrate its core systems to the Alibaba Group’s cloud platform to enhance operational efficiency and boost productivity.

China hosts around 22 Free Trade Zones across multiple provinces, including, Fujian, Guangdong, Henan, Sichuan, Shaanxi, Tianjin, Zhejiang, and other provinces to support enterprises across multiple sectors by offering wide range of advantages for establishing and operating their businesses efficiently across the country. The Free Trade Zones in China offer enterprises, including data center operators with simplified customs and business-registration procedures, financial liberation measures like free-trade accounts and cross-border RMB flexibility, tax incentives for high-tech industries, and other benefits.

China controls personal and sensitive data through several laws, including the Personal Information Protection Law, Data Security Law, and Cybersecurity Law, which sets clear rules on how data should be collected, stored, used, and shared; these laws also give people rights over their personal data and require companies to follow strong security practices, regularly check risks, obtain government approval before sending data outside the country, and report any major data security issues on time.

CHINA DATA CENTER MARKET - KEY HIGHLIGHTS

1. The government of China is actively supporting the data center industry by funding domestic technology firms to strengthen local GPU manufacturing and to address the export restrictions imposed by international governments that limit the supply of advanced semiconductors to Chinese companies. In September 2025, Alibaba Group announced the development of a new AI inferencing chip, which will be more flexible compared to its earlier semiconductors.
2. China’s AI Plus initiative focuses on accelerating the adoption of artificial intelligence across key sectors such as research, public, finance, and others to boost productivity and drive innovation across the nation. The initiative also aims to strengthen the country’s AI infrastructure and position China as one of the leading global hubs for advanced artificial intelligence development.
3. The trend of forming joint ventures and signing Memoranda of Understanding has been increasing in the China data center market to enhance digital capabilities and data center infrastructure across the country. The technology companies and data center operators are collaborating with companies across diverse sectors to develop data centers across multiple locations in China. In July 2025, Nyocor, along with several other companies, announced plans to develop multiple data center facilities in the desert regions of Xinjiang, which will be capable of hosting over 100,000 AI chips. As of December 2024, local authorities in Xinjiang and Qinghai had already approved proposals from various firms to establish around 39 data centers across China
4. The Green Data Center Government Procurement Demand Standard requires data center operators in China to maintain high energy efficiency, meaning any data center built after June 2023 should have a Power Usage Effectiveness (PUE) of not more than 1.4, and it also require companies to gradually use more renewable energy, with at least 30% renewable power usage, increasing to 50% by 2027, around 75% by 2030, and eventually reaching close to 100% by 2032.
5. As the demand for data center infrastructure is rising significantly, the data center companies are sourcing funds and finances from multiple organizations, financial institutions, and banks to expand data center service offerings. For example, in December 2024, Chindata Group secured a fund of over $490 million from multiple financial institutions to expand digital infrastructure capabilities across China and other nations.
6. In China, companies that offer internet-related data center services—such as renting servers, storage, racks, providing bandwidth, or managing IT systems must obtain an Internet Data Center License, as these services involve handling internet access and customer data.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment area, and power capacity
2. An assessment of the data center investment in China by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across regions in the country.
4. A detailed study of the existing China data center market landscape, an in-depth industry analysis, and insightful predictions about the China data center market size during the forecast period.
5. Snapshot of upcoming third-party data center facilities in China
6. Facilities Identified (Upcoming): 700+
7. Coverage: 73+ Provinces
8. Upcoming Data Center Location
9. Upcoming Data Center Status
10. Investment opportunities by facility type (value, area, and power capacity): Colocation data centers, Hyperscale data centers, and Enterprise data centers
11. China data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
12. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
13. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
14. A transparent research methodology and the analysis of the demand and supply aspects of the market.

CHINA DATA CENTER MARKET VENDOR LANDSCAPE

1. The colocation data center companies contribute to generating the majority of the data center investments in China. Some of the prominent colocation companies operating in China include, aofei data international company, @hub, BDx Data Centers, CASIT Information Technology, China Communications Construction Company, Shijiazhuang Changshan Beiming Technology, Chayora, China Datang Corporation, China International Capital Corporation, China Mobile International, China Telecom Corporation, China Unicom, Chindata Group, Deheng Data, Digital Guangxi Group, Dr. Peng Telecom & Media Group, Fujian Douxun Technology, GDS Holdings, Heying Data, Hotwon Network Group, Kehua Tech, Keppel Data Centres, HAILANYUN Technology, Beijing Sinnet Technology, China Three Gorges Corp., Tianjin Jiangtian Data Technology, VNET Group, Zhejiang Hanggang Digital Technology, ZDATA Group, Hefei City Cloud Data Center, Henan Digital Zhongyuan Data, Volcano Cloud (Datong) Technology, and others.
2. The country also hosts major cloud service providers such as, Alibaba Group, Baidu, Huawei, and others that operate multiple hyperscale data centers and cloud regions across Beijing, Chengdu, Chongqing, Guangzhou, Guiyang, Nanjing, Shanghai, Ulanqab, Wuhu, Wuhan, and others. The cloud market in China is anticipated to continue witnessing substantial growth during the forecast period. For instance, in September 2025, Alibaba Group planned to obtain a fund of around $3.2 billion to expand its cloud computing and data center service offerings across China.
3. China has the presence of global as well as local support infrastructure providers, which supply, support infrastructure for resilient data center operations. Some of the prominent support infrastructure providers in China include, ABB, AIRSYS, Baudouin, Carrier, Caterpillar, Cummins, Delta Electronics, EAST GROUP, Eaton, EVADA (Xiamen) Technology, Fuji Electric, Shenling, HITEC Power Protection, Hongbao Power Supply, INVT Power, Legrand, Mitsubishi Electric, Nanjing Jialitu Data Center Environment Technology, Piller Power Systems, Rittal, Rolls Royce, Schneider Electric, KSTAR, STULZ, Trane, Vertiv, and others.
4. The prominent IT infrastructure companies like Cisco, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Inspur Group, Lenovo, Everpure, Quanta Cloud Technology, Wiwynn, and others supply IT infrastructure, including servers, storage systems, and networking equipment for data centers in China.
5. The companies like AECOM, ATS Global, Aurecon, China Electronics Engineering Design Institute, China Railway Construction, China State Construction Engineering Corporation, DSCO Group, MCC Group, Zhejiang Cloud Valley, and others offer wide range of construction, installation, commissioning, and engineering services for the construction of data centers in China.

REPORT COVERAGE:

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

1. Facility Type
2. Colocation Data Centers
3. Hyperscale Data Centers
4. Enterprise Data Centers
5. IT Infrastructure
6. Server Infrastructure
7. Storage Infrastructure
8. Network Infrastructure
9. Electrical Infrastructure
10. UPS Systems
11. Generators
12. Switches & Switchgears
13. PDUs
14. Other Electrical Infrastructure
15. Mechanical Infrastructure
16. Cooling Systems
17. Rack Cabinets
18. Other Mechanical Infrastructure
19. Cooling Systems
20. CRAC and CRAH
21. Chillers
22. Cooling Towers, Condensers and Dry Coolers
23. Other Cooling Units
24. General Construction
25. Core & Shell Development
26. Installation & commissioning Services
27. Building & Engineering Design
28. Fire Detection & Suppression Systems
29. Physical Security
30. Data Center Infrastructure Management (DCIM)
31. Tier Standard
32. Tier I & Tier II
33. Tier III
34. Tier IV
35. Geography
36. East China
37. West China
38. North China
39. South China

VENDOR LANDSCAPE

1. IT INFRASTRUCTURE PROVIDERS: Cisco, Dell Technologies, Hewlett-Packard Enterprise, Huawei Technologies, IBM, Inspur Group, Lenovo, Everpure (Pure Storage), Quanta Cloud Technology (QCT), NVIDIA, and Wiwynn.
2. DATA CENTER CONSTRUCTION CONTRACTORS & SUB-CONTRACTORS: AECOM, ATS Global, Aurecon, China Electronics Engineering Design Institute (CEEDI), China Railway Construction, China State Construction Engineering Corporation, DSCO Group, MCC Group, and Zhejiang Cloud Valley.
3. SUPPORT INFRASTRUCTURE PROVIDERS: ABB, AIRSYS, Baudouin, Carrier, Caterpillar, Cummins, Delta Electronics, EAST GROUP, Eaton, EVADA (Xiamen) Technology, Fuji Electric, Shenling, HITEC Power Protection, Hongbao Power Supply, INVT Power, Legrand, Mitsubishi Electric, Nanjing Jialitu Data Center Environment Technology, Piller Power Systems, Rittal, Rolls Royce, Schneider Electric, KSTAR, STULZ, Trane, and Vertiv.
4. DATA CENTER INVESTORS: Alibaba Group, aofei data international company, @hub, Baidu, BDx Data Centers, Capitalonline Data Service, CASIT Information Technology, China Communications Construction Company Shijiazhuang Changshan Beiming Technology, Chayora, China Datang Corporation, China International Capital Corporation, China Mobile International, China Telecom Corporation, China Unicom, Chindata Group, Deheng Data, Digital Guangxi Group, Dr. Peng Telecom & Media Group, Fujian Douxun Technology, GDS Holdings, Heying Data, Hotwon Network Group, Huawei, Kehua Tech, Keppel Data Centres, HAILANYUN Technology, Beijing Sinnet Technology, Tencent, China Three Gorges Corp., Tianjin Jiangtian Data Technology, VNET Group, Zhejiang Hanggang Digital Technology, ZDATA Group, Hefei City Cloud Data Center, Henan Digital Zhongyuan Data, and Volcano Cloud (Datong) Technology.