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

China Data Center Rack Market Trends and Insights

Increasing Deployment of Hyperscale and Colocation Facilities

Hyperscale expansion is recasting demand profiles as Alibaba, Tencent and Baidu co-develop ODCC Scorpio rack designs that lower ownership costs by up to 20%. Gansu’s State Grid cloud center installed 3,000 racks at an initial cost of RMB 1 billion, illustrating the scale of current build-outs. Standardized full racks streamline automated deployment, pressing smaller suppliers either to consolidate or specialize. The trend is concentrated in national computing hubs where incentives favor facilities housing thousands of identical racks. As a result, the China data center rack market is pivoting toward high-volume, uniform configurations that compress delivery schedules and boost energy efficiency.

Surge in Cloud and AI Workloads Driving High-Density Rack Demand

Energy use at intelligent computing centers already eclipses traditional facilities by factors of up to four, requiring racks that can sustain 30 kW-plus densities and host advanced liquid-cooling manifolds. Huawei’s CloudMatrix 384 super node extends these boundaries, enabling clusters that support GPT-scale models without breaching power caps.^{[1]Li Zhuo, “CloudMatrix 384 Super Node Unveiled,” 21st Century Business Herald, 21jingji.com} Yet GPU rental prices have fallen as idle capacity rises, forcing buyers to balance near-term density needs with long-term utilization. Rack vendors able to combine high-density readiness with modular scalability are winning hyperscale bids.

Rising BFSI Digital-Core Upgrades Requiring Secure On-Prem Racks

Stricter data-localisation clauses under the Personal Information Protection Law are pushing financial institutions to keep core workloads on-prem. Edge solutions such as Schneider Electric NetShelter CX Mini integrate hyper-converged hardware in lockable cabinets that meet branch-level security norms. Demand has surged for racks with tamper-proof doors, biometric access, and onboard environment sensing. Vendors are embedding compliance documentation into rack management software so banks can automate audit trails, broadening opportunities within the China data center rack industry.

Carbon-Neutral Mandates Fostering Liquid-Cooling-Ready Rack Adoption

With data-center electricity demand forecast to reach up to 340 TWh by 2027 ^{[2]International Energy Agency, “Electricity 2024 – Data Centers,” iea.org}, operators must cut PUE scores below 1.3 to secure permits. Liquid cooling lowers cooling energy by 30-50%. Racks featuring cold-plate loops and immersion tanks are therefore gaining traction, accelerating the transition of the China data center rack market toward specialized thermal designs.

U.S. Export-Control Limits on High-End Chips Slowing Ultra-Dense Rack Roll-outs

Washington’s 2023-2024 rule changes restrict shipments of top-tier GPUs and CPUs into China, curbing the ability to build next-generation AI clusters that need 600 W chips per slot. Domestic alternatives are improving but still lag peak performance. Rack designs are therefore emphasizing flexible backplanes and mezzanine cards to support multiple processor roadmaps. While this approach cushions near-term shocks, it tempers ultra-dense deployment plans, trimming demand growth within the China data center rack market.

Land and Power Quota Caps in Tier-1 Cities Tightening Data-Center Approvals

Municipal regulators have capped annual power allocations for new data-center builds in Beijing and Shanghai, compelling operators to stretch existing footprints. Nearly 46% of China’s racks are located in water-scarce zones, heightening scrutiny of cooling-water draw.^{[3]CWR, “China ICT running dry ,”cwrrr.org} Operators respond by upgrading legacy 42U installations to 48U or 52U liquid-ready racks that boost capacity per square meter by 25-30%. Innovative designs that shrink white-space needs are therefore pivotal to sustaining the China data center rack market trajectory in constrained metros.

Segment Analysis

By Rack Size: Full Racks Drive Hyperscale Standardization

Full racks accounted for 67.9% of 2024 demand, and their 15.4% CAGR underscores hyperscale operators’ preference for uniform 42U or 48U blocks that speed robot-assisted deployment. This segment alone represents more than half of the China data center rack market size for 2025. Quarter- and half-racks serve 5G edge sites and mid-tier colocation halls respectively, but the scale benefits of full-rack procurement dominate national tenders. The full-rack surge is bolstered by western mega-campuses, where plots accommodate tens of thousands of identical bays, slashing per-rack cabling and cooling costs. In turn, suppliers are bundling power-distribution units and busbars inside factory-integrated racks to shorten on-site assembly times.

Standardization around full racks also accelerates the inclusion of liquid or rear-door heat-exchanger options during fabrication, reducing retrofit complexity later. Emerging software-defined power modules now plug directly into rack power shelves, enabling automated peak-shaving to keep facilities within their contracted grid quota. As cloud service providers intensify sustainability pledges, full-rack solutions with embedded monitoring promise consistent thermal profiles and lower life-cycle emissions, further reinforcing their dominance within the China data center rack market.

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

By Rack Height: 48U Emerges as High-Density Standard

The legacy 42U format still controlled 53.2% of installed cabinets in 2024, yet 48U shipments are expanding at 15.3% CAGR as operators chase incremental vertical space. Taller frames deliver roughly 14% more usable volume, permitting additional GPU trays or battery modules without enlarging floor area. In intelligent-computing sites, 52U custom racks power pilot projects exceeding 80 kW per cabinet, but 48U strikes the cost-performance sweet spot for mainstream AI scale-outs. This trend lifts the China data center rack market size for high-height formats, encouraging vendors to develop adjustable-rail systems that maintain structural stability during seismic events.

Liquid-cooling loops frequently occupy the bottom 4U in 48U cabinets, keeping the centre of gravity low and simplifying service access. Government PUE thresholds below 1.3 incentivise such integrated solutions, and the combination of taller racks with immersion trays helps operators meet energy codes in water-stressed provinces. Consequently, 48U will likely eclipse 42U in new-build hyperscale halls by 2027, reshaping inventory planning across the China data center rack market.

By Rack Type: Cabinet Security Drives Financial Sector Adoption

Cabinet racks captured 71.4% revenue share in 2024 and will outpace other formats through 2030 on a 16.2% CAGR. Closed-door designs allow physical segregation of tenant workloads in multi-tenant colocation halls, aligning with China’s Personal Information Protection Law. Enclosed racks also improve airflow containment, fostering rack-level cooling that supports AI hardware. Open-frame racks retain relevance in hyperscale rooms where security resides at the building layer, and wall-mount variants target edge closets. Yet banking and insurance clients increasingly mandate biometric locks and tamper sensors, funnelling budget toward advanced cabinet options and reinforcing the premium segment of the China data center rack market.

Manufacturers are marrying cabinet enclosures with smart PDUs and environment sensors that push real-time compliance dashboards to enterprise SOCs. This integrated approach lowers audit overhead and provides differentiated value in sectors under regulatory oversight. As a result, security-focused cabinet lines are expected to remain the revenue engine of the China data center rack industry over the forecast horizon.

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

By Data Center Type: Hyperscaler Accelerate Cloud Infrastructure

Colocation sites held 57.8% of installed cabinets in 2024, but hyperscale and cloud-service facilities will clock the fastest 14.4% CAGR to 2030. Public-cloud giants are building multi-gigawatt campuses in western clusters, propelling bulk orders for standardized racks with integrated liquid-cooling manifolds. Enterprise and edge builds continue, yet their smaller rack counts mean hyperscale growth dominates incremental demand within the China data center rack market. Hybrid-cloud adoption further blurs lines as enterprises lease cages inside hyperscale-aligned colocation halls.

Hyperscale procurement favours vendors offering turnkey rack-to-row packages, including busway, containment and coolant distribution, squeezing margin for component-only providers. Conversely, edge builds reward agile suppliers capable of delivering micro-data-center cabinets with IP54 ingress protection for factory floors or telecom rooftops. This bifurcation is set to structure competitive positioning across the China data center rack market through 2030.

By Material: Aluminum Gains Traction for Thermal Efficiency

Steel retained 72.3% market share in 2024 owing to its cost advantages and mature supply chain. However, aluminum cabinets are expanding 14.7% annually due to superior thermal conductivity and weight savings that lower seismic bracing costs. Trump-era import tariffs raise steel and aluminum prices alike, but domestic smelters enjoy lower input costs, aiding aluminum’s penetration. Liquid-cooling skids mate more easily with aluminum frames because of similar galvanic profiles, reducing corrosion risk. These factors enlarge the opportunity for aluminum within the China data center rack market, though hybrid steel-aluminum assemblies are emerging to balance cost and performance.

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

Geography Analysis

Eastern economic belts Beijing-Tianjin-Hebei and the Yangtze River Delta command the largest installed rack base in 2024, reflecting the finance and internet clusters that dominate demand. The China data center rack market size in these mature metros will keep steady as operators retrofit tall, liquid-ready racks to navigate land and power caps. In parallel, the “Eastern Data, Western Computing” blueprint is shifting incremental growth westward at double-digit CAGR

Western hubs leverage natural free-cooling and renewable energy, cutting OPEX by up to 30% compared with coastal peers. Yet limited fiber routes elevate latency, driving demand for dense, cache-centric racks that minimize cross-region traffic. State-owned carriers dominate procurement in these hubs, gradually rebalancing supply-chain power in the China data center rack market. Green energy availability also accelerates liquid-cooling adoption because water-based secondary loops integrate with on-site hydro or wind power, reinforcing the sustainability narrative.