China Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government

China Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030

The China Data Center Market size was valued at USD 14.47 billion in 2023, and is predicted to reach USD 33.37 billion by 2030, at a CAGR of 12.7% from 2024 to 2030.

Chinese companies' relentless drive for innovation in the market sphere is a key factor fueling demand. Notably, China achieved a groundbreaking feat by constructing the world's first submerged commercial data center off Hainan Island's coast. This ambitious project, done in partnership with Highlander and China Offshore Oil Engineering Co. (COOEC), utilizes underwater cooling technology for improved energy efficiency. However, environmental concerns highlight the need for careful assessment of this groundbreaking initiative. Additionally, Guizhou's rapid rise as a market leader within China signifies a new frontier in industry expansion. With ambitious goals of reaching 800,000 racks and 4 million servers by 2025, and already hosting 18 operational centers, including industry giants such as Huawei and Tencent, Guizhou is poised to become a global data hub, further driving market growth in China.

However, market growth faces challenges due to high initial investment requirements. The data center sector encounters significant hurdles, mainly due to the substantial upfront costs and strict environmental regulations. Building and maintaining network infrastructure demand substantial financial commitments upfront, posing barriers for smaller enterprises and start-ups entering the market. Additionally, adhering to environmental standards necessitates continuous investment in energy-efficient technologies hinders the overall market growth.

On the other hand, embracing edge computing presents lucrative opportunities for market expansion. By reducing latency and enabling real-time processing, edge computing empowers applications such as the Internet of Things (IoT) and Augmented Reality (AR), relieving pressure on centralized cloud data centers while providing scalability and flexibility. This decentralized approach enhances security by processing sensitive data locally and aligns with evolving digital landscapes, opening doors for network infrastructure providers to explore diverse opportunities. Recent investments in startups such as Armada underscore the growing interest in edge computing solutions, indicating a concerted effort to address connectivity issues and bridge the digital divide.

Segment Overview

The China Data Center industry is segmented based on type, deployment model, enterprise size, and end users.
Based on type, the market is segmented into colocation, hyperscale, edge, and others.
Based on deployment model, the market is divided into on-premise, cloud, and hybrid.
Based on enterprise size, the market is bifurcated into large enterprise, small and medium size enterprise.
Based on the end users, the market is divided into BFSI, IT and telecom, government, energy and utilities, and other end users.

Key Market Players

Leading players operating in the China data center industry include:
• Amazon.com Inc.
• IBM Corporation
• Microsoft Corporation
• Cisco System Inc.
• Oracle Corporation
• SAP SE
• Hewlett Packard Enterprise Company
• NTT Communications Corporation
• Equinix Inc.
• Digital Reality Trust Inc

KEY BENEFITS
• The China data center market report provides a quantitative analysis of the current market and estimations through 2024-2030 that assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a deep dive analysis of the market trend including the current and future trends for depicting the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.
• The competitive analysis of the market players along with their market share in the China data center market.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.
• Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.