Shanghai Data Center Market Size
| Study Period | 2020 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 10.40 % |
| Market Concentration | High |
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?
Shanghai Data Center Market Analysis
The installed capacity of data centers in Shanghai was 197 MW in the last year, which is expected to increase to 419.5 MW after six years, registering a CAGR of 10.4% during the forecast period. The COVID-19 pandemic positively affected the data center market. The pandemic led to the rapid acceptance of digitalization in the city. Since every industry suddenly became dependent on smart devices and the internet, the data center market grew during the pandemic.
- A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
- Being a Tier 1 city, Shanghai has a population of around 24.89 million. Growing consumer needs and industrialization have led data center companies to set up regional facilities.
- Large and medium data centers had a combined market share of nearly 45% in 2022. SMEs are the primary customers of these data centers. However, the trend is expected to shift toward mega and massive data centers in the coming years. The category for mega data centers is expected to witness the fastest growth, followed by massive data centers, during the forecast period.
- In the past few years, the local government of Shanghai issued an industry regulation, 'Guiding Opinions on Strengthening the Coordinated Construction of Data Centers in this Municipality'. Under this guideline, new data center construction is banned within the metropolitan city region. New constructions must have a PUE of 1.3, wherein the data center must have 3,000 racks, and the average rack density must be 6 kW. Therefore, despite the ban on the construction of data centers within the main city, the mega data center segment is expected to witness in the greater Shanghai region. The segment for massive data centers is expected to increase from 6 MW to 55 MW during the forecast period.
- COVID-19 affected data center construction in the market studied as it has delayed the construction of several new facilities. Ongoing construction from enterprises and colocation service providers witnessed a halt. Furthermore, the pandemic has put high pressure on end-user companies to support remote working and are fast-tracking their cloud and digitization journeys.which created huge demand for data centers.
Shanghai Data Center Market Trends
Increasing cloud and colocation services are anticipated to drive the growth of data center market in the Shanghai.
- Virtualization has driven the data center industry over the years. Companies have sought to reduce infrastructure by focusing IT operations on fewer, more highly utilized machines. This process has led to a wider view of data centers in general. Companies operating multiple data centers can focus their facilities on fewer and larger implementations to decrease complexity and costs.
- Additionally, Factors including increasing cloud and colocation services, associated cost benefits in the region provided by the government, and improved economies of the Shangai region are anticipated to drive the market for data centers. Microsoft, and Amazon Web Services (AWS), data centers are in a class by themselves. They have to function fully automatic, self-healing, networked data centers that operate at fiber optic speeds to make a fabric that can access any node in any particular data center, as there are multiple pathways to every node.
- However, higher initial investments and low resource availability are some factors presenting challenges to this market. Despite such challenges, various organizations have already adopted or are initiating the adoption of data centers in the region.
BFSI segment to grow at a noteworthy pace.
- The banking and finance sector is one of the largest data generators, and the need for a data center to regulate the cost of operations is a primary driver. Finance and banking structures use data centers to store customer records, employee management, transactions, and electronic banking services, such as remote banking, telebanking, and self-inquiry, which need data centers to function.
- Data centers, as infrastructure, are believed to be the future of finance. Many institutions have created private cloud systems to accommodate massive network, storage, and server capacities to support their retail financial centers, ATMs, and active online accounts.
- The digital ecosystem surrounding a bank is blowing up at a quick pace. With the constant change in consumer demands, banks have been forced to customize their product offerings according to their demands. Secondly, as consumers embrace a mobile lifestyle and socialize on digital platforms, they expect banks to connect with them on the same platforms.
- Many banks maintain their own data centers in the country, but it has been observed that the trend is changing due to fluctuations in the banks' profits. Also, maintaining a data center is cumbersome, owing to the cost drain on IT, real estate, and operations, as it requires proper cooling, security, and power facilities. This can act as a challenge for the BFSI industry during the forecast period.
Shanghai Data Center Industry Overview
The data center market is highly concentrated due to higher initial investments and low availability of resources, which present challenges to this market, mainly for the mega and massive data centers. The competitive rivalry in the Shanghai data center market is moderate due to the presence of some significant firms, including China Telecom Corporation Ltd, Equinix, Princeton Digital Group, NTT Ltd, KDDI Telehouse, and GDS.
Shanghai Data Center Market Leaders
China Telecom Corporation Ltd
Equinix
NTT Ltd
KDDI Telehouse
GDS
*Disclaimer: Major Players sorted in no particular order
Shanghai Data Center Market News
March 2022: Chayora announced the launch of its new data center campus in the Shanghai region of China. The facility is phase one of a proposed 54MW and 10,000 racks campus to be in operation by the second quarter of 2022.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. KEY INDUSTRY TRENDS
4.1 Smartphone Users
4.2 Data Traffic per Smartphone
4.3 Mobile Data Speed
4.4 Broadband Data Speed
4.5 Regulatory Framework
4.6 Value Chain Analysis
5. MARKET OUTLOOK
5.1 IT Load Capacity
5.2 Raised Floor Space
5.3 Number of Racks
6. MARKET SEGMENTATION
6.1 DC Size
6.1.1 Small
6.1.2 Medium
6.1.3 Large
6.1.4 Massive
6.1.5 Mega
6.2 Tier Type
6.2.1 Tier 1 & 2
6.2.2 Tier 3
6.2.3 Tier 4
6.3 Absorption
6.3.1 Utilized
6.3.1.1 Colocation Type
6.3.1.1.1 Retail
6.3.1.1.2 Wholesale
6.3.1.1.3 Hyperscale
6.3.1.2 End User
6.3.1.2.1 Cloud & IT
6.3.1.2.2 Telecom
6.3.1.2.3 Media & Entertainment
6.3.1.2.4 Government
6.3.1.2.5 BFSI
6.3.1.2.6 Manufacturing
6.3.1.2.7 E-Commerce
6.3.1.2.8 Other End User
6.3.2 Non-Utilized
7. COMPETITVE LANDSCAPE
7.1 Company Profiles
7.1.1 China Telecom Corporation Ltd
7.1.2 Equinix
7.1.3 Princeton Digital Group
7.1.4 NTT Ltd
7.1.5 KDDI Telehouse
7.1.6 GDS
7.1.7 Chayora Ltd
Shanghai Data Center Industry Segmentation
A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
The Shanghai Data Center Market is segmented by DC Size (Small, Medium, Large, Massive, Mega), Tier Type (Tier 1&2, Tier 3, Tier 4), Absorption (Utilized (Colocation Type (Retail, Wholesale, Hyperscale), End User ( Cloud & IT, Telecom, Media & Entertainment, Government, BFSI, Manufacturing, E-Commerce)), Non-Utilized). The market sizes and forecasts are provided in terms of value (MW) for all the above segments.
Frequently Asked Questions
What is the current Shanghai Data Center Market size?
The Shanghai Data Center Market is projected to register a CAGR of 10.40% during the forecast period (2024-2030)
Who are the key players in Shanghai Data Center Market?
China Telecom Corporation Ltd, Equinix, NTT Ltd, KDDI Telehouse and GDS are the major companies operating in the Shanghai Data Center Market.
What years does this Shanghai Data Center Market cover?
The report covers the Shanghai Data Center Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Shanghai Data Center Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Shanghai Data Center Industry Report
Statistics for the 2024 Shanghai Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Shanghai Data Center analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
