China Data Center Construction Market Size
| Study Period | 2024 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| CAGR | 3.54 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
China Data Center Construction Market Analysis
China's Data Center Construction Market is projected to register a CAGR of 3.54% over the next 5 years. The country houses 443 data centers holding a majority in the Asia Pacific region. The country's demand for newer data centers is due to the growing adoption of cloud computing, the Internet of Things (IoT), and artificial intelligence (AI).
- China released a series of policy documents giving the green light to construct several new data center clusters in four regions around the country. The new data center clusters are part of a plan called the 'Eastern Data, Western Computing.' This involves the construction of ten data center clusters and eight computing hubs to connect the active eastern regions to the resource-rich western regions and drive a balance for supply and demand of computing capacity aiding China's digital transformation and technological development.
- Further, an increase in the penetration rate of the 5G network in the country is expected to increase data generation, which would raise the need for more space for storing and processing these data. Apart from personal usage, 5G technology is expected to heavily influence industrial automation, primarily in manufacturing, mining, and healthcare. This trend is expected to raise the occupancy rate in data centers in the coming years, driving the demand for data center construction in the country during the forecast period.
- In addition, market movements have increased the cost of data center construction in some Asian countries like Singapore, Japan, and South Korea, as they fall under the top 10 countries affected by construction cost inflation. Thus, attracting more Data Center projects in China than in other Asian countries.
- However, other countries like Japan and Indonesia are gaining more opportunities to construct data centers as many IT companies have turned away from China due to the growing security concerns and US-China tension, resulting in fewer data center construction projects.
- The country had a positive impact from the COVID-19 pandemic due to increased demand for digital resources. Companies like Alibaba completed the construction of super data centers post-pandemic to host more than a million additional servers to meet their requirement for advanced cloud infrastructures.
China Data Center Construction Market Trends
Tier-3 is the largest Tier Type
- Tier-3 data centers are the most preferred due to features such as on-site assistance, power, and cooling redundancy. The segment is expected to grow from 1,115.1 MW in 2022 to 1,874 MW by 2029 at a CAGR of 5.7%. Companies mainly choose these data centers for storing and processing business-critical data to cater to their growing business and scalability needs. The country has around 110 Tier-3 data centers, and around 37 upcoming data centers are under construction with Tier-3 specifications.
- In 2022, GDS Service Co. Ltd had 70 data centers with Tier-3 certification, followed by Chindata Group Holdings Ltd with 15 data center facilities and China Telecom Corporation Ltd with 10 data center facilities.
- Tier-4 data centers are the next most preferred by large businesses due to their performance, lower downtime, and 99.99% uptime. These data centers are relatively costly; however, their performance outweighs the price and supports the competitive and growing needs of large businesses. In 2022, the country had seven Tier-4 data centers owned by Princeton Digital Group and SpaceDC Pte Ltd.
- Tier-1 & 2 data centers are the least preferred due to their higher downtime durations, power and cooling redundancies, and on-site remote assistance. Since these data centers are relatively cheap compared to Tier-3 and Tier-4, small businesses and startup companies prefer them. Since Tier-1 & 2 data centers are the least preferred, stagnant growth could be seen during the forecast period.
Phenomenal Growth in E-commerce and Hi-tech Industries
- The country's rapid growth in e-commerce and hi-tech industries is driving the market's growth positively. In recent years, the country's Technology, Media, and Telecommunications (TMT) sector has favored industry growth off the back of a growing economy and policy directives aimed at elevating the industry. The number of TMT unicorn companies (privately held businesses valued at USD 1 billion or more) in the country has increased over the last few years.
- In addition, the policy driving TMT sector development in the country over recent years is the 'Made in China 2025' policy. The Chinese government is working through this 10-year plan to quicken the advancement of high-tech industries in the country, including telecommunications, electrical power equipment, robotics, high-end automation, and new energy vehicles.
- Moreover, another technology-related policy objective the country is pursuing to boost sustainable economic growth is 'new infrastructure' development, which includes 5G network establishment and data center construction. In total, 25 provincial-level regions have put 'new infrastructure' projects into their government work reports, with 21 proposing to advance 5G network establishment. Thus driving opportunities for the market studied.
- Further, the country is one of the emerging nations where the e-commerce market is growing rapidly due to the rising consumer preference for online shopping, the proliferation of alternative payment solutions, online shopping events, such as single-day offering lucrative discounts, and improved logistic infrastructure. According to China Internet Network Information Center (CNNIC), the penetration rate for online shopping in China reached 79.2% in 2022 compared to 79.1% in 2020. Thus driving opportunities for the market studied.
China Data Center Construction Industry Overview
China's Data Center Construction Market is moderately fragmented, with the top five companies occupying most of the market share. The major players in this market are AECOM, DSCO Group, NTT Facilities, Studio One Design, Turner, and Townsend (sorted alphabetically).
In February, NetEase began constructing a large data center in Guian, Southwest China's Guizhou province, with an investment of USD 66.7 million. The facility is designed to house 10,000 standard racks and 100,000 servers.
China Data Center Construction Market Leaders
AECOM
DSCO Group
NTT Facilities
Studio one Design
Turner and Townsend
*Disclaimer: Major Players sorted in no particular order
China Data Center Construction Market News
- February 2023: CapitaLand Investment Limited announced to construction of hyperscale data centers in Greater Bejing with CapitaLand China Data Centre Partners (CDCP) and deliver more than 100MW by 2025. The construction aims to support sustainability by acquiring certification from Energy and Environmental Design (LEED) Gold standards. Thus providing opportunities for the vendors in the market.
- January 2022: Beijing Highlander Digital Technology Co Ltd. announced to build a commercial underwater data center worth USD 880 million. The project supported the country's 5-year plan for a sustainable environment by reducing cooling costs and emissions.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Demand for Supercomputing
4.2.2 Phenomenal Growth in E-commerce and Hi-tech Industries
4.2.3 Major Initiatives Undertaken by Governments to Promote Digital Economy and Connectivity Infrastructure
4.3 Market Restraints
4.3.1 High Power Consumption and emission contribution of Data Centers
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. Key Industry Statistics
5.1 Planned/Under Construction IT Load Capacity
5.2 Planned/Under Construction Raised Floor Space
5.3 Planned/Under Construction Submarine Cable
6. MARKET SEGMENTATION
6.1 Tier Type
6.1.1 Tier 1 and 2
6.1.2 Tier 3
6.1.3 Tier 4
6.2 Data Center Size
6.2.1 Small
6.2.2 Medium
6.2.3 Large
6.2.4 Mega
6.2.5 Massive
6.3 Infrastructure
6.3.1 Cooling Infrastructure
6.3.1.1 Air-based Cooling
6.3.1.2 Liquid-based Cooling
6.3.1.3 Evaporative Cooling
6.3.2 Power Infrastructure
6.3.2.1 UPS Systems
6.3.2.2 Generators
6.3.2.3 Power Distribution Unit (PDU)
6.3.3 Racks and Cabinets
6.3.4 Servers
6.3.5 Networking Equipment
6.3.6 Physical Security Infrastructure
6.3.7 Design and Consulting Services
6.3.8 Other Infrastructure
6.4 End-User
6.4.1 IT & Telecommunication
6.4.2 BFSI
6.4.3 Government
6.4.4 Healthcare
6.4.5 Other End User
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 AECOM
7.1.2 Aueron Group
7.1.3 CSF Group
7.1.4 DSCO Group
7.1.5 Gammon Construction Limited
7.1.6 NTT Ltd.
7.1.7 Sato Kogyo (S) Pte Ltd.
7.1.8 Obayashi Corporation
7.1.9 Nakano Corporation
7.1.10 M+W Group GmbH
7.1.11 Kienta Engineering Construction
7.1.12 IBM Corporation
7.1.13 SAS Institute Inc.
7.1.14 JE Dunn Construction Group Inc
7.1.15 Hensel Phelps Construction Co. Inc.
7.1.16 DPR Construction Inc.
7.1.17 Turner Construction Co.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. MARKET OPPORTUNITIES AND FUTURE TRENDS
China Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The China Data Center Construction Market is segmented by Tier Type (Tier 1 and 2, Tier 3, and Tier 4), by Data Center Size (Small, Medium, Large, Massive, and Mega), by Infrastructure (Cooling Infrastructure (Air-based Cooling, Liquid-based Cooling, Evaporative Cooling), Power Infrastructure (UPS Systems, Generators, Power Distribution Unit (PDU), Racks and Cabinets, Servers, Networking Equipment, Physical Security Infrastructure, Design and Consulting Services, and Other Infrastructure), and End User ( IT & Telecommunication, BFSI, Government, Healthcare, and Other End User). The market sizes and forecasts are provided in values of USD for all the above segments.
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Data Center Size | |
| Small | |
| Medium | |
| Large | |
| Mega | |
| Massive |
| Infrastructure | |||||
| |||||
| |||||
| Racks and Cabinets | |||||
| Servers | |||||
| Networking Equipment | |||||
| Physical Security Infrastructure | |||||
| Design and Consulting Services | |||||
| Other Infrastructure |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Healthcare | |
| Other End User |
Frequently Asked Questions
What is the current China Data Center Construction Market size?
The China Data Center Construction Market is projected to register a CAGR of 3.54% during the forecast period (2024-2030)
Who are the key players in China Data Center Construction Market?
AECOM, DSCO Group, NTT Facilities, Studio one Design and Turner and Townsend are the major companies operating in the China Data Center Construction Market.
What years does this China Data Center Construction Market cover?
The report covers the China Data Center Construction Market historical market size for years: . The report also forecasts the China Data Center Construction Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
China Data Center Construction Industry Report
Statistics for the 2024 China Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. China Data Center Construction analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
