China Data Center Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The China Data Center Market is Segmented by IT Infrastructure (Servers, Storage and Network), Electrical Infrastructure (UPS Systems, Generators, Transfer Switches and Switchgears, Rack PDU), Type (Enterprise Data Centers, Managed Services Data Centers, Colocation Data Centers, Cloud Data Centers), Tier Standards (Tier I &II, Tier III, and Tier IV), End-User (BFSI, Telecom and IT, Media and Entertainment, Healthcare, E-commerce, and Government) and Geography (Beijing, Shanghai, Guangzhou, Shenzhen, and Rest of China). The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.

China Data Center Industry Overview

China Data Center Market Summary
Study Period: 2018 - 2028
CAGR: 19.2 %

Major Players

China Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order


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China Data Center Market Analysis

The China Data Center Market is anticipated to register a CAGR of 19.2% during the period. Increasing demand for supercomputing and phenomenal growth in e-commerce and hi-tech industries will drive market growth.

  • China is highly focusing on taking the lead over global peers in data center construction, with larger enterprises looking to scale up their data centers for ensuring stability and reliability of data services, as the application of 5G, wearable devices, the internet of things, and artificial intelligence spur a burgeoning demand for computing power.
  • Growing demand from enterprises is expected to propel the growth of cloud computing and other associated data services in the country. Also, advancements in data center technology and its integration with other associated benefits are the key driving factors for China's growth.
  • Moreover, conventional industries are supported by policies to embrace digital transformation and enhance their adoption of IT technologies. Hence, their demand for internet data center services is also rising, further driving the market growth.
  • Data centers that support businesses, internet services, and social media lives use lots of energy. As their numbers grow, there is pressure to make them more energy-efficient and reduce their environmental impact.
  • COVID-19 altered the way people used technology and network services. Before the pandemic, heavy demands on digital infrastructure primarily centered in large businesses and institutions like schools and hospitals, with personal networks also receiving fair use. Now, with much of the workforce and many students dispersed into private residences, digital infrastructure must provide reliable support across a range of networks and cope with substantial changes in demand.

China Data Center Industry Segments

A data center is a centralized facility used for data computing, processing, and storage. It includes high-performance servers, networking equipment, storage arrays, and supporting services such as powering and cooling solutions. Data centers are established by either large-scale enterprises or enterprises offering cloud-based services.

The China Data Center Market is Segmented by IT Infrastructure (Servers, Storage and Network), Electrical Infrastructure (UPS Systems, Generators, Transfer Switches and Switchgears, Rack PDU), Type (Enterprise Data Centers, Managed Services Data Centers, Colocation Data Centers, Cloud Data Centers), Tier Standards (Tier I &II, Tier III, and Tier IV), End-User (BFSI, Telecom and IT, Media and Entertainment, Healthcare, E-commerce and Government) and Geography (Beijing, Shanghai, Guangzhou, Shenzhen, and Rest of China).
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments

IT Infrastructure
Electrical Infrastructure
UPS Systems
Transfer Switches and Switchgears
Rack PDU
Other Electrical Infrastructure
Enterprise Data Centers
Managed Services Data Centers
Colocation Data Centers
Cloud Data Centers
Tier Standards
Tier I and II
Tier III
Tier IV
End User
Telecom and IT
Media and Entertainment
Other End Users
Rest of China

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China Data Center Market Trends

This section covers the major market trends shaping the China Data Center Market according to our research experts:

Advancement of IT Infrastructure in Enterprise Drives the Market Growth

  • Increasing efforts to construct data centers at a large scale to meet the accelerating demand from enterprises to scale up their data center operations is influencing the market demand. The development of the telecommunication industry and the rapid growth of internet users in the country are expected to boost the demand for China's data center market.
  • In order to fulfill the high computational power requirements of businesses, the application of cutting-edge technologies like the internet of things, artificial intelligence, and machine learning, as well as the rollout of 5G technology, increases the demand for dependable data services.
  • One of the most significant supercomputers in the world is located in China, and there is a great need for quick processing performance for business applications. The building of data centers in the nation is being fueled by the escalating efforts being made by the top authorities to make China one of the world's preeminent powerhouses.
  • Moreover, adopting internet technology in the private and public business sectors promotes the country's digital transformation. The proliferation and adoption of online payment gateways, mobile wallets, and net banking by consumers and the rise in the number of IT players operating in the province are expected to fuel the China data center market growth.
China Data Center Market: Forecast of the 5G smart culture and sports infrastructure market size in China from 2021 to 2025, in billion yuan

E-commerce sector witnesses the growth

  • Datacenter value is increasing due to China's fifth-generation mobile telecommunications technology advancement and the thriving e-commerce industry. The e-commerce industries are embracing digital technology to improve business operations. Currently, both commercial and non-commercial activities are carried out via e-commerce services by more than 70% of the people in China.
  • The market demand is anticipated to be impacted by an increase in the number of market players using the online sales channel as a medium to sell the items and extend their consumer base to enhance the reach of their products globally.
  • While the market participants are making investments to give clients a tailored shopping experience by purchasing different data analytics tools and software to improve the services provided to the customers, customers enter their personal information along with contact and delivery details to make easy deliveries of products, which is expected to drive the need for data centers to store and manage the data efficiently. They hold vast amounts of data for processing and generating insights to keep marketing strategies ahead.
  • The growth of mobile payment systems has catalyzed these e-commerce companies' desire for data center infrastructures. Data centers are also widely employed in e-commerce to lower overall operational complexity while boosting flexibility, scale, and efficiency.
China Data Center Market: Number of cross-border online shoppers in China from 2015 to 2021, in USD Millions

China Data Center Market Competitor Analysis

The competitive rivalry in the China data center market is moderate due to the presence of some significant firms, including China Mobile and Alibaba Group Holding Limited. They have a competitive advantage over other players thanks to their capacity to continuously reinvent their goods.

In April 2022, Alibaba Cloud and VMware released the next iteration of their jointly developed public cloud service, Alibaba Cloud VMware Service, to assist organizations throughout China in accelerating their digital transformation. The service promises to help Chinese organizations migrate and modernize applications more quickly and shift workloads between on-premises VMware infrastructures and Alibaba Cloud at scale.

China Data Center Market Top Players

  1. Alibaba Group Holding Limited

  2. China Mobile Limited

  3. China United Network Communications Group Co. Ltd.

  4. China Telecommunications Corporation

  5. Centrin Data Systems Co. Ltd.

*Disclaimer: Major Players sorted in no particular order

China Data Center Market Concentration

China Data Center Market Recent Developments

  • April 2022: Alibaba Group Holding Limited announced a commitment to have its global data centers running entirely on clean energy by 2030 by employing cutting-edge green technologies across these facilities as part of its adoption of a green technology strategy.
  • February 2022: Fujitsu announced that it will lead the development of energy-efficient CPUs and photonics smart NIC for next-generation green data centers under the NEDO program initiative, which aims to achieve energy savings of 40% or more in data centers domestically by 2030.

China Data Center Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - "Porter's Five Forces Analysis"

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Buyers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Intensity of Competitive Rivalry

      5. 4.2.5 Threat of Substitute Products

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of Impact of COVID-19 on China Data Center Market


    1. 5.1 Market Drivers

      1. 5.1.1 Increasing Demand for Supercomputing

      2. 5.1.2 Advancement of IT Infrastructure in Enterprise

      3. 5.1.3 Phenomenal Growth in E-commerce and Hi-tech Industries

    2. 5.2 Market Restraints

      1. 5.2.1 High Power Consumption and emission contribution of Data Centers


    1. 6.1 Infrastructure

      1. 6.1.1 IT Infrastructure

        1. Servers

        2. Storage

        3. Network

      2. 6.1.2 Electrical Infrastructure

        1. UPS Systems

        2. Generators

        3. Transfer Switches and Switchgears

        4. Rack PDU

        5. Other Electrical Infrastructure

    2. 6.2 Type

      1. 6.2.1 Enterprise Data Centers

      2. 6.2.2 Managed Services Data Centers

      3. 6.2.3 Colocation Data Centers

      4. 6.2.4 Cloud Data Centers

    3. 6.3 Tier Standards

      1. 6.3.1 Tier I and II

      2. 6.3.2 Tier III

      3. 6.3.3 Tier IV

    4. 6.4 End User

      1. 6.4.1 BFSI

      2. 6.4.2 Telecom and IT

      3. 6.4.3 Government

      4. 6.4.4 Media and Entertainment

      5. 6.4.5 Healthcare

      6. 6.4.6 E-commerce

      7. 6.4.7 Other End Users

    5. 6.5 Geography

      1. 6.5.1 Beijing

      2. 6.5.2 Shanghai

      3. 6.5.3 Guangzhou

      4. 6.5.4 Shenzhen

      5. 6.5.5 Rest of China


    1. 7.1 Company Profiles

      1. 7.1.1 Alibaba Cloud (Alibaba group holding limited)

      2. 7.1.2 China Mobile Limited

      3. 7.1.3 China United Network Communications Group Co. Ltd

      4. 7.1.4 China Telecommunications Corporation

      5. 7.1.5 Centrin Data Systems Co. Ltd

      6. 7.1.6 Equinix Inc.

      7. 7.1.7 AT&T Inc.

      8. 7.1.8 Digital Realty Trust Inc.

      9. 7.1.9 Fujitsu Ltd

      10. 7.1.10 Tencent Holdings Ltd

    2. *List Not Exhaustive


**Subject to Availability
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China Data Center Market Research FAQs

The China Data Center Market is studied from 2018 - 2028.

The China Data Center Market is growing at a CAGR of 19.2% over the next 5 years.

Alibaba Group Holding Limited, China Mobile Limited, China United Network Communications Group Co. Ltd., China Telecommunications Corporation, Centrin Data Systems Co. Ltd. are the major companies operating in China Data Center Market.

China Data Center Industry Reports

In-depth industry statistics and market share insights of the China Data Center sector for 2020, 2021, and 2022. The China Data Center research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the China Data Center report PDF.

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