Study Period | 2018 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Volume (2025) | 4.27 Thousand MW |
Market Volume (2030) | 8.26 Thousand MW |
CAGR | 14.08 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
China Data Center Market Analysis
The China Data Center Market size is estimated at 4.27 thousand MW in 2025, and is expected to reach 8.26 thousand MW by 2030, growing at a CAGR of 14.08%. Further, the market is expected to generate colocation revenue of USD 4,011.7 Million in 2025 and is projected to reach USD 9,706.6 Million by 2030, growing at a CAGR of 19.33% during the forecast period (2025-2030).
China's data center industry is undergoing a significant transformation driven by the government's strategic initiatives and sustainability mandates. The country has launched the ambitious East to West Computing Capacity Diversion Project, which aims to establish eight computing hubs and ten data center clusters to build a unified national data center system by 2025. This strategic shift is complemented by stringent environmental regulations, including a government mandate requiring data centers to progressively increase their renewable energy usage by 10% annually to achieve 100% renewable energy adoption by 2030. The initiative demonstrates China's commitment to balancing digital infrastructure growth with environmental responsibility.
The industry is witnessing a notable shift in facility specifications and operational standards, particularly in terms of energy efficiency and scale. Data centers are now required to maintain a Power Usage Effectiveness (PUE) of d 1.3 by 2023, with facilities demonstrating higher PUE levels facing restrictions on power quota allocations. This has led to widespread modernization efforts across the industry, with operators investing in advanced cooling technologies and power management systems. The market currently maintains a healthy occupancy rate of 71.7%, indicating strong demand while leaving room for strategic capacity expansion.
The Chinese data center landscape is experiencing significant consolidation and standardization, particularly in facility certification and tier classifications. Currently, the market features 110 Tier 3 data centers with 37 additional facilities under construction, highlighting the industry's preference for higher reliability and performance standards. The presence of seven Tier 4 data centers in 2022 further demonstrates the market's maturation and increasing sophistication, as organizations prioritize maximum uptime and operational excellence.
Local governments are playing a pivotal role in shaping the industry's development through targeted incentives and regulations. Regions such as Tianjin, Zhejiang, and Hubei are offering commercial electricity at preferential rates and favorable land acquisition terms to attract data center investments. These initiatives are particularly focused on promoting the construction of mega and hyperscale facilities, which align with the national strategy of optimizing resource allocation and improving operational efficiency. The government's approach includes restrictions on new data center construction in central urban areas while incentivizing development in strategic locations, effectively guiding the industry's geographical distribution and technological advancement.
China Data Center Market Trends
Huawei, Apple, Xiaomi, Oppo, and Vivo offer cheap smartphones with high end features which attracts consumers to spend more these products creating a hige demand in smartphones in the country
- The number of Chinese smartphone users was 950 million in 2022, and the figure is expected to reach 1.8 billion by the end of the forecast period (2023-2029), registering a CAGR of 10.2%. The spread of 4G and 5G connectivity across the country has improved mobile communication, making smartphones a basic necessity for people.
- Chinese smartphone companies are offering affordable smartphones with high-end features, leading to an increase in smartphone users in the country. Around 50% of users replace their phones every 12-18 months, making companies innovate their phones frequently. Currently, the major market players are Huawei, Apple, Xiaomi, Oppo, and Vivo.
- This increase in smartphone users has positively impacted the growth of the data center market in the country. During the study period, when the number of smartphone users increased fivefold, the number of racks in data centers increased from around 70k in 2017 to 280k in 2021. This trend is expected to be witnessed during the forecast period as well.
Chinese government's "Broadband China Strategy coupled with increased fiber connectivity, boost the data centers in the country
- The Chinese government's "Broadband China Strategy," drafted in 2013 and implemented in 2015, is accredited for spreading broadband connectivity across the country, primarily in remote locations. In 2021, under this strategy, the broadband speed reached 100 Mbps for residential use in cities and 20 Mbps in rural regions. On the other hand, the broadband speed for commercial/industrial use increased from an average speed of 100 Mbps in 2015 to 1 Gbps in 2021. With further expansion of the fiber connectivity network, average speeds are estimated to rise significantly in the coming years.
- In order to provide high data speeds, the Chinese market increased the distance of laying fiber optic cables over the years. The deployment of optic fiber cable networks in the country registered a CAGR of 8.5% during 2017-2022. The deployment of fiber optic cables spurred last-mile internet connectivity in the country. As these cables offer better connectivity and higher bandwidths, most companies replaced them with traditional copper cables to offer better and upgraded services.
- Stable broadband speed, predominantly via fiber cables, is crucial for the expansion of data centers and their communication with other data centers and internet exchanges (IX). It has become common for companies to store their business's critical data in the cloud, colocation, and in-house. Within these storage locations, various services are provided to their customers across different servers. With the increase in the number of points of communication, it becomes critical to keep communication as fast as possible. Therefore, strong broadband connectivity across the country is expected to support the data centers to maintain 100% uptime during the forecast period.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Increasing usage of OTT subscriptions and mobile gaming along with social media penetration increases the data center market
- Implementation of national FTTH standards across the country, increases the data center demand in China
- Increase in the penetration rate of the 5G network in the country, drives the data center market
Segment Analysis: By Data Center Size
Mega Data Center Segment in China Data Center Market
The mega data center segment dominates the China data center market, accounting for approximately 53% of the total IT load capacity in 2024. This significant market share is driven by the Chinese government's initiatives, such as the East to West Computing Capacity Diversion Project, which aims to build eight computing hubs and ten data center clusters by 2025. The segment's dominance is particularly evident in regions like Hebei, where local governments offer incentives such as subsidized electricity rates and reduced land costs to encourage the construction of mega facilities. Companies like Space DC Pte Ltd and Princeton Digital Group are actively expanding their mega data center portfolios, with several facilities under construction in strategic locations across China.

Large Data Center Segment in China Data Center Market
The large data center segment is experiencing the fastest growth trajectory in the China data center market, with projections indicating an approximate growth rate of 11% during 2024-2029. This robust growth is primarily driven by the increasing demand from telecommunications operators and cloud service providers who require substantial computing capacity. China Telecom data centers hold a significant portion of large data centers, with facilities strategically located across Shanghai, Beijing, and Sichuan. The segment's growth is further supported by upcoming projects in the Hebei and Tianjin regions, where companies are planning to develop new large-scale facilities to meet the escalating demand for data processing and storage capabilities.
Remaining Segments in Data Center Size Market
The massive, medium, and small data center segments each play distinct roles in the China data center ecosystem. The massive segment caters to enterprises requiring substantial computing power but not at the scale of mega facilities, while medium data centers primarily serve small and medium-sized businesses with moderate computing needs. The small data center segment, though representing the smallest market share, continues to serve specific niche markets and local business requirements. These segments complement each other by providing varied options for different business scales and requirements, ensuring that the market can accommodate diverse customer needs across different regions and industries.
Segment Analysis: By Tier Type
Tier 3 Segment in China Data Center Market
Tier 3 data centers dominate the Chinese data center market, commanding approximately 68% market share in 2024, primarily due to their optimal balance of reliability and cost-effectiveness. These facilities are particularly attractive to businesses seeking high-performance computing capabilities while maintaining reasonable operational costs. Shanghai leads in hosting Tier 3 data centers with nearly 29% of the country's facilities, followed by Beijing at 26% and Guangdong at 20%. Major players like GDS Service Co. Ltd, Chindata Group Holdings Ltd, and China Telecom Corporation Ltd have significantly invested in Tier 3 facilities, with GDS Service Co. Ltd alone operating 70 Tier 3 certified data centers. The segment's prominence is further reinforced by the ongoing construction of 37 new Tier 3 facilities, with major development activities concentrated in the Hebei region, followed by Beijing, Shanghai, and Jiangsu.
Tier 4 Segment in China Data Center Market
The Tier 4 segment is experiencing the most rapid expansion in the Chinese data center market, with an expected growth rate of approximately 14% during 2024-2029. This accelerated growth is driven by increasing demand for maximum reliability and uptime from large enterprises and critical business operations. Princeton Digital Group and Space DC Pte Ltd are the primary operators of Tier 4 facilities in China, with Space DC Pte Ltd leading in capacity at over 260 MW. The segment's robust growth is further supported by ongoing construction projects, particularly Space DC Pte Ltd's mega data center project in the Hubei hotspot, which will add a substantial 225 MW capacity. The expansion of Tier 4 facilities is strategically focused on key business hubs and emerging technology centers, reflecting the growing sophistication of China's digital infrastructure requirements.
Remaining Segments in Tier Type
Tier 1 & 2 data centers represent the basic infrastructure segment of the Chinese data center market, primarily serving small businesses and startup companies with basic computing needs. These facilities, while offering lower costs, face challenges in meeting the increasing demands for reliability and performance in modern digital operations. The segment's limited growth potential is attributed to the industry-wide shift towards higher tier certifications, as businesses increasingly prioritize uptime reliability and advanced infrastructure capabilities. Despite their cost advantages, Tier 1 & 2 facilities are gradually being phased out in favor of more sophisticated data center tiers, particularly in major business hubs where reliability and performance requirements are paramount.
Segment Analysis: By Absorption
Utilized Segment in China Data Center Market
The Utilized segment dominates the China data center market, accounting for approximately 75% of the total IT load capacity in 2024. This segment represents the effectively deployed and operational data center capacity across various sectors, including cloud services, BFSI, e-commerce, and telecommunications. The segment's prominence is driven by the increasing adoption of digital services, growing data consumption, and the rapid expansion of hyperscale facilities across major hotspots like Beijing, Shanghai, and Guangdong. Furthermore, this segment is expected to maintain its market leadership while demonstrating the strongest growth trajectory among all segments, with projections indicating continued expansion through 2029. The robust growth is supported by government initiatives promoting digitalization, the ongoing deployment of 5G infrastructure, and the increasing demand for cloud computing services across various industries.
Non-Utilized Segment in China Data Center Market
The Non-Utilized segment represents the available but unused capacity in data centers across China, accounting for the remaining portion of the market. This segment plays a crucial role in the market as it provides the necessary buffer capacity for future expansion and helps data center operators maintain operational flexibility. The presence of non-utilized capacity is particularly important in emerging data center hotspots like Tianjin, Zhejiang, and Hubei, where absorption rates are gradually improving. Data center operators strategically maintain this unused capacity to accommodate sudden spikes in demand, especially from hyperscale clients and rapidly growing sectors. The segment's dynamics are influenced by factors such as regional development policies, power availability, and the overall market demand-supply balance. Government initiatives and incentives in various regions are expected to help optimize the utilization of this available capacity over time.
China Data Center Industry Overview
Top Companies in China Data Center Market
The data center market in China is characterized by continuous innovation and strategic expansion initiatives by key players. Companies are increasingly focusing on developing sustainable and energy-efficient facilities, with many operators working towards carbon neutrality goals through renewable energy adoption and cooling technology improvements. Operational excellence is being pursued through automation and smart management systems, while geographic expansion is primarily driven by the government's East to West Computing Capacity Diversion Project. Players are strengthening their market positions through strategic partnerships with cloud service providers and technology companies, while also investing in research and development for cooling solutions and power management systems. The industry is witnessing a trend towards mega data center developments, particularly in regions offering tax incentives and subsidized electricity rates.
Market Dominated by Regional Strategic Players
The Chinese data center market exhibits a mix of domestic and international players, with local operators holding significant market share. The market structure is relatively consolidated at the top, with major players like Space DC Pte Ltd, Chindata Group Holdings, and Princeton Digital Group controlling substantial portions of the market. These China data center companies have established strong positions through their extensive infrastructure networks and strategic locations across key economic zones. The market is characterized by a high barrier to entry due to substantial capital requirements and the need for regulatory compliance.
The industry is experiencing strategic consolidation through partnerships and acquisitions, particularly as companies seek to expand their geographic presence and technical capabilities. International players are entering the market through joint ventures with local operators to navigate regulatory requirements and gain market access. The competitive dynamics are shifting as operators focus on different market segments, with some specializing in wholesale and hyperscale facilities while others target retail colocation services. The market is seeing increased investment in Tier 3 and Tier 4 facilities to meet growing demand for high-reliability services.
Innovation and Sustainability Drive Future Success
Success in the Chinese data center companies market increasingly depends on operators' ability to balance expansion with sustainability initiatives. Companies need to focus on developing energy-efficient facilities while maintaining high reliability and performance standards. The ability to offer customized solutions for different customer segments, from hyperscale to retail colocation, will be crucial for market success. Operators must also stay ahead of technological advancements, particularly in areas such as cooling systems and power management, while maintaining strong relationships with cloud service providers and technology partners.
Market participants need to carefully consider geographic expansion strategies, particularly in light of government initiatives promoting data center in China development in western regions. Companies must navigate regulatory requirements while maintaining operational efficiency and service quality. The ability to offer value-added services, such as cloud connectivity and managed services, will become increasingly important for differentiation. Future success will also depend on operators' ability to address growing security concerns and maintain compliance with evolving data protection regulations. Building strong relationships with local authorities and understanding regional development plans will be crucial for sustainable growth in the China data centers market.
China Data Center Market Leaders
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China Telecom Corporation Ltd
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Equinix Inc.
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GLP Pte Limited
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Keppel DC REIT Management Pte. Ltd
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Princeton Digital Group
- *Disclaimer: Major Players sorted in no particular order
China Data Center Market News
- December 2022: EdgeConneX entered a strategic partnership with Chayora Ltd to provide its services in China.
- September 2022: Chindata Group Holdings Ltd announced that it had acquired green energy of 100 million kWh by participating in China’s nationwide green energy transaction. This move will help the company reduce its carbon emissions by 94,000 tons.
- June 2022: Keppel Data Centers Pte Ltd acquired two data centers in Jiangmen and Guangdong from Guangdong BlueSea Development Co. Ltd.
Free With This Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
China Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
-
5.6 Regulatory Framework
- 5.6.1 China
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
-
6.1 Hotspot
- 6.1.1 Beijing
- 6.1.2 Guangdong
- 6.1.3 Hebei
- 6.1.4 Jiangsu
- 6.1.5 Shanghai
- 6.1.6 Rest of China
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6.2 Data Center Size
- 6.2.1 Large
- 6.2.2 Massive
- 6.2.3 Medium
- 6.2.4 Mega
- 6.2.5 Small
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6.3 Tier Type
- 6.3.1 Tier 1 and 2
- 6.3.2 Tier 3
- 6.3.3 Tier 4
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6.4 Absorption
- 6.4.1 Non-Utilized
- 6.4.2 Utilized
- 6.4.2.1 By Colocation Type
- 6.4.2.1.1 Hyperscale
- 6.4.2.1.2 Retail
- 6.4.2.1.3 Wholesale
- 6.4.2.2 By End User
- 6.4.2.2.1 BFSI
- 6.4.2.2.2 Cloud
- 6.4.2.2.3 E-Commerce
- 6.4.2.2.4 Government
- 6.4.2.2.5 Manufacturing
- 6.4.2.2.6 Media & Entertainment
- 6.4.2.2.7 Telecom
- 6.4.2.2.8 Other End User
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
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7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 BDx Data Center Pte. Ltd
- 7.3.2 Chayora Ltd
- 7.3.3 China Telecom Corporation Ltd
- 7.3.4 Chindata Group Holdings Ltd
- 7.3.5 Equinix Inc.
- 7.3.6 GDS Service Co. Ltd
- 7.3.7 GLP Pte Limited
- 7.3.8 Keppel DC REIT Management Pte. Ltd
- 7.3.9 Princeton Digital Group
- 7.3.10 Space DC Pte Ltd
- 7.3.11 Telehouse (KDDI Corporation)
- 7.3.12 Zenlayer Inc.
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, CHINA, 2018 - 2030
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), CHINA, 2018 - 2030
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, CHINA, 2018 - 2030
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, CHINA, 2018 - 2030
- Figure 5:
- RACK SPACE UTILIZATION, %, CHINA, 2018 - 2030
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, CHINA, 2018 - 2030
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, CHINA, 2018 - 2030
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, CHINA, 2018 - 2030
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, CHINA, 2018 - 2030
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, CHINA, 2018 - 2030
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, CHINA, 2018 - 2030
- Figure 12:
- VOLUME OF HOTSPOT, MW, CHINA, 2018 - 2030
- Figure 13:
- VOLUME SHARE OF HOTSPOT, %, CHINA, 2018 - 2030
- Figure 14:
- VOLUME SIZE OF BEIJING, MW, CHINA, 2018 - 2030
- Figure 15:
- VOLUME SHARE OF BEIJING, MW, HOTSPOT, %, CHINA, 2018 - 2030
- Figure 16:
- VOLUME SIZE OF GUANGDONG, MW, CHINA, 2018 - 2030
- Figure 17:
- VOLUME SHARE OF GUANGDONG, MW, HOTSPOT, %, CHINA, 2018 - 2030
- Figure 18:
- VOLUME SIZE OF HEBEI, MW, CHINA, 2018 - 2030
- Figure 19:
- VOLUME SHARE OF HEBEI, MW, HOTSPOT, %, CHINA, 2018 - 2030
- Figure 20:
- VOLUME SIZE OF JIANGSU, MW, CHINA, 2018 - 2030
- Figure 21:
- VOLUME SHARE OF JIANGSU, MW, HOTSPOT, %, CHINA, 2018 - 2030
- Figure 22:
- VOLUME SIZE OF SHANGHAI, MW, CHINA, 2018 - 2030
- Figure 23:
- VOLUME SHARE OF SHANGHAI, MW, HOTSPOT, %, CHINA, 2018 - 2030
- Figure 24:
- VOLUME SIZE OF REST OF CHINA, MW, CHINA, 2018 - 2030
- Figure 25:
- VOLUME SHARE OF REST OF CHINA, MW, HOTSPOT, %, CHINA, 2018 - 2030
- Figure 26:
- VOLUME OF DATA CENTER SIZE, MW, CHINA, 2018 - 2030
- Figure 27:
- VOLUME SHARE OF DATA CENTER SIZE, %, CHINA, 2018 - 2030
- Figure 28:
- VOLUME SIZE OF LARGE, MW, CHINA, 2018 - 2030
- Figure 29:
- VOLUME SIZE OF MASSIVE, MW, CHINA, 2018 - 2030
- Figure 30:
- VOLUME SIZE OF MEDIUM, MW, CHINA, 2018 - 2030
- Figure 31:
- VOLUME SIZE OF MEGA, MW, CHINA, 2018 - 2030
- Figure 32:
- VOLUME SIZE OF SMALL, MW, CHINA, 2018 - 2030
- Figure 33:
- VOLUME OF TIER TYPE, MW, CHINA, 2018 - 2030
- Figure 34:
- VOLUME SHARE OF TIER TYPE, %, CHINA, 2018 - 2030
- Figure 35:
- VOLUME SIZE OF TIER 1 AND 2, MW, CHINA, 2018 - 2030
- Figure 36:
- VOLUME SIZE OF TIER 3, MW, CHINA, 2018 - 2030
- Figure 37:
- VOLUME SIZE OF TIER 4, MW, CHINA, 2018 - 2030
- Figure 38:
- VOLUME OF ABSORPTION, MW, CHINA, 2018 - 2030
- Figure 39:
- VOLUME SHARE OF ABSORPTION, %, CHINA, 2018 - 2030
- Figure 40:
- VOLUME SIZE OF NON-UTILIZED, MW, CHINA, 2018 - 2030
- Figure 41:
- VOLUME OF COLOCATION TYPE, MW, CHINA, 2018 - 2030
- Figure 42:
- VOLUME SHARE OF COLOCATION TYPE, %, CHINA, 2018 - 2030
- Figure 43:
- VOLUME SIZE OF HYPERSCALE, MW, CHINA, 2018 - 2030
- Figure 44:
- VOLUME SIZE OF RETAIL, MW, CHINA, 2018 - 2030
- Figure 45:
- VOLUME SIZE OF WHOLESALE, MW, CHINA, 2018 - 2030
- Figure 46:
- VOLUME OF END USER, MW, CHINA, 2018 - 2030
- Figure 47:
- VOLUME SHARE OF END USER, %, CHINA, 2018 - 2030
- Figure 48:
- VOLUME SIZE OF BFSI, MW, CHINA, 2018 - 2030
- Figure 49:
- VOLUME SIZE OF CLOUD, MW, CHINA, 2018 - 2030
- Figure 50:
- VOLUME SIZE OF E-COMMERCE, MW, CHINA, 2018 - 2030
- Figure 51:
- VOLUME SIZE OF GOVERNMENT, MW, CHINA, 2018 - 2030
- Figure 52:
- VOLUME SIZE OF MANUFACTURING, MW, CHINA, 2018 - 2030
- Figure 53:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, CHINA, 2018 - 2030
- Figure 54:
- VOLUME SIZE OF TELECOM, MW, CHINA, 2018 - 2030
- Figure 55:
- VOLUME SIZE OF OTHER END USER, MW, CHINA, 2018 - 2030
- Figure 56:
- VOLUME SHARE OF MAJOR PLAYERS, %, CHINA
China Data Center Industry Segmentation
Beijing, Guangdong, Hebei, Jiangsu, Shanghai are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.Hotspot | Beijing | |||
Guangdong | ||||
Hebei | ||||
Jiangsu | ||||
Shanghai | ||||
Rest of China | ||||
Data Center Size | Large | |||
Massive | ||||
Medium | ||||
Mega | ||||
Small | ||||
Tier Type | Tier 1 and 2 | |||
Tier 3 | ||||
Tier 4 | ||||
Absorption | Non-Utilized | |||
Utilized | By Colocation Type | Hyperscale | ||
Retail | ||||
Wholesale | ||||
By End User | BFSI | |||
Cloud | ||||
E-Commerce | ||||
Government | ||||
Manufacturing | ||||
Media & Entertainment | ||||
Telecom | ||||
Other End User |
Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
Keyword | Definition |
---|---|
Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms