China Data Center Power Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

China Data Center Power Market Trends and Insights

Rising adoption of hyperscale and AI mega data centers

AI training workloads push rack densities up to 10 times those of legacy halls, forcing operators to re-engineer power trains for higher amperage and tighter voltage tolerance. According to the Ministry of Industry and Information Technology, Hyperscalers plan to deploy more than 300 EFLOPS of AI compute by 2025, accelerating demand for modular busways, battery-ready UPS blocks, and liquid-cooling-compatible PDUs. The International Energy Agency projects that electricity consumed by AI-optimised Chinese data centers will quadruple by 2027.^{[1]International Energy Agency, “AI is set to drive surging electricity demand from data centres while offering the potential to transform how the energy sector works,” iea.org} Equipment vendors have responded with rack-level DC architectures that cut conversion loss, and with lithium-battery UPS modules able to discharge at higher ambient temperatures. 

Government “New Infrastructure” stimulus fueling cloud build-out

Central authorities have earmarked RMB 1.2 trillion (USD 0.17 trillion) for cloud and intelligent-computing capacity by 2025.^{[2]National Development and Reform Commission, “China plans to build 8 national computing hubs with 10 data center clusters,” ndrc.gov.cn} Eight national computing hubs with ten data-center clusters are already under construction, redirecting workloads from coastal metros to inland zones where land and green energy are plentiful. State-owned utilities, provincial governments, and private carriers are coordinating grid connections so that clusters can draw bulk power at favourable tariffs while conforming to a mandated PUE ceiling of 1.3 by 2025. These policies shorten payback periods for high-efficiency electrical gear and create clear volumes for domestic production lines.

5G and IoT-driven edge and colocation demand boom

Full nationwide 5G coverage is spurring real-time analytics for industry, healthcare, and connected vehicles. These low-latency applications require micro-data-centers embedded in malls, factories, and roadside shelters, increasing the count of sites that must run autonomously on compact power modules. Colocation firms are leveraging distributed campuses to aggregate edge workloads that demand sub-5 ms round-trip latency. The number of 5G base stations in China has hit 4.25 million, with the number of gigabit broadband users surpassing 200 million.^{[3]The State Council Information Office, “The number of 5G base stations in China has hit 4.25 million,” scio.gov.cn} Intelligent PDUs with on-board metering help track per-customer usage, enabling granular billing and early fault detection. Vendors integrating UPS, sequenced transfer switches, and cooling in a single rack cabinet are gaining share in this fast-moving niche.

Renewable-energy quotas enabling green power procurement

Grid operators in provinces such as Hebei and Inner Mongolia are required to boost green-power dispatch annually, opening priority access for data-center clusters that commit to long-term renewable purchases. Tencent, the Chinese tech player, has rolled out a renewable-powered hybrid microgrid at its data center in Huailai County, Hebei Province. With a total installed capacity of 10.99MW, the project boasts an annual generation capacity of 14 million kWh. Operators deploying hybrid AC-DC backbones report smoother voltage profiles that limit generator runtime and lower carbon intensity enough to meet investor disclosure frameworks.

High upfront CAPEX for advanced power systems

Lithium-ion UPS arrays, intelligent PDUs, and integrated storage solutions command premiums of 30-40% over legacy equipment, deterring cash-constrained enterprises despite lower lifecycle cost. Financing challenges are most acute in edge and second-tier colocation projects, where owners struggle to align customer contracts with amortisation schedules. Domestic vendors now offer tiered product lines that match step-wise upgrade paths, yet smaller operators still postpone replacements, potentially locking in higher energy losses and maintenance overhead for years.

Grid-power constraints in Tier-1 cities

Urban load pockets already operate near transmission capacity, forcing authorities in Beijing and Shanghai to cap data-center megawatts per site. Operators therefore pursue high-density rack designs that squeeze more compute into limited footprints but also intensify cooling and power-delivery complexity. Battery energy storage systems rated for fast discharge are being adopted to shave peaks and smooth incoming supply. Where grid applications are denied, some providers migrate expansion phases to adjacent provinces, reinforcing the national east-to-west rebalancing plan.

Segment Analysis

By Component: UPS Systems Anchor Critical Infrastructure

UPS platforms captured 37.25% revenue in 2024 and remain the cornerstone of power resilience across the China data center power market. Vendors are retiring lead-acid strings in favour of lithium packs that offer double the cycle life and occupy half the floor area. Modular topologies allow hot-swap maintenance without load transfer, lifting availability, and meeting Tier III redundancy norms. Sales of intelligent PDUs are climbing at a 12.8% CAGR as operators chase outlet-level monitoring to manage AI clusters that can spike from 6 kW to 20 kW per rack in seconds. Generators are evolving toward fuel-cell hybrids that promise near-zero local emissions; Tencent’s 400 kW hydrogen cell deployment illustrates the move away from diesel. Battery energy storage systems complement peak-shaving strategies, enabling facilities to honour grid demand-response contracts.

Note: Segment shares of all individual segments available upon report purchase

By Data Center Type: Colocation Providers Hold the Lead

Colocation facilities commanded 45% of the China data center power market in 2024, favoured by enterprises that prefer opex-driven models over self-build. Providers leverage economies of scale to negotiate bulk clean electricity and to invest in high-efficiency UPS blocks that lower power costs for tenants. The hyperscale cloud segment, growing at 15.2% CAGR, is erecting 100 MW campuses that embed on-site substations and direct-wire renewables. These operators adopt DC busways and immersion cooling to support AI training farms, setting new benchmarks that smaller sites strive to emulate. Enterprises continue to run on-premise halls for regulated workloads, but tightening green mandates are nudging many toward green colocation nodes that guarantee PUE below 1.3.

By Data Center Size: Massive Facilities Dominate Capacity Build-outs

Massive sites above 10,000 sq m held 48.21% share of installed megawatts in 2024, reflecting national policies that favour clustering for energy efficiency. Operators achieve economies of scale through centralised chilled-water plants and high-voltage feed lines that serve dozens of halls. The China data center power market size for mega facilities, defined as campuses exceeding 100 MW IT load, is projected to expand at 11.2% CAGR as AI workloads demand contiguous compute farms. Each mega campus often warrants a dedicated 220 kV substation, demanding early collaboration with grid planners. Within the same perimeter, operators zone racks by power density, using busway segments that can be hot-swapped as chip TDP ratings climb. Small and medium halls remain relevant for latency-sensitive or compliance-bound data, but many must retrofit cooling and electrical plants to hit the 1.3 PUE target.

Note: Segment shares of all individual segments available upon report purchase

By Tier Level: Tier III Sets the Baseline

Tier III achieved 72.76% share in 2024 and represents the default reliability benchmark for financial, e-commerce, and public-sector workloads. Operators deploy N+1 UPS, dual utility feeds, and concurrent maintainability to secure 99.982% uptime. The average PUE in Tier III halls fell to 1.48 in 2024 and is expected to improve further as lithium batteries and liquid cooling become mainstream. Tier IV footprints are projected to grow at 13.5% CAGR because critical AI inference and fintech platforms require fault-tolerant 2N architectures. Each Tier IV build threads dual power paths down to rack level, doubling demand for identical switchgear and monitored branch circuits. The market also recognises a hybrid “Tier III+” practice, where operators add selective 2N components often UPS and distribution without full mechanical redundancy.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Beijing remained the largest regional contributor with 27.15% revenue share in 2024. Strict municipal rules now bar projects whose PUE exceeds 1.5, which has accelerated migration toward lithium UPS blocks, aisle containment, and chilled-water economiser loops. Operators investing early in these upgrades gain priority grid allotments, enabling them to support AI start-ups clustered in Zhongguancun and fintech workloads in the city’s CBD. Yet limited grid headroom is capping expansion, prompting providers to lease capacity in neighbouring Hebei and Tianjin while maintaining cross-region DR nodes.

Hebei recorded the fastest rise, advancing at 11.12% CAGR through 2030 as part of the Beijing-Tianjin-Hebei integrated data-hub plan. Zhangjiakou hosts 330,000 standard racks, fuelled largely by wind power generated on the Mongolian plateau. Operators pair battery energy storage systems with smart inverters to smooth variability, demonstrating compliance with green data-center scorecards. Lower land cost and abundant renewable certificates make the province attractive for hyperscalers that need fresh megawatts without the grid congestion seen in the capital.