Market Size of China Data Center Power Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 1.30 Billion |
| Market Size (2029) | USD 1.94 Billion |
| CAGR (2024 - 2029) | 6.56 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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China Data Center Power Market Analysis
The China Data Center Power Market size is estimated at USD 1.30 billion in 2024, and is expected to reach USD 1.94 billion by 2029, growing at a CAGR of 6.56% during the forecast period (2024-2029).
The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Chinese data center market is expected to reach 4,765.19 MW by 2029.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 14.2 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 71K units by 2029. Beijing is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are close to 25 submarine cable systems connecting Indonesia, and many are under construction. The Asia Direct Cable (ADC) was estimated to start service in 2023; it stretches over 9,800 km with landing points from Chung Hom Kok and Shantou.
- The government considers power-saving measures such as subsidies to increase energy efficiency or productivity and moves towards a low-carbon system to solve the electricity problem and crisis. In support of the above policy and to reduce energy consumption, key market players are focusing on introducing efficient power management systems such as PDUs, busways, and UPS for the purpose of controlling unnecessary expenditures in data centers, which is expected to boost market growth.
China Data Center Power Industry Segmentation
Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, that provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions tailored to the specific needs of data centers. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.
The Chinese data center power market is segmented by power infrastructure (electrical solution (ups systems, generators, power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)), and services) and end user (IT & telecommunication, BFSI, government, media & entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| Power Infrastructure | ||||||||||||
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| End User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End User |
China Data Center Power Market Size Summary
The China Data Center Power Market is poised for significant growth, driven by the increasing demand for cloud computing, stringent government regulations on data security, and substantial investments from domestic players. The market is characterized by a robust expansion in IT load capacity, raised floor space, and the installation of racks, with Beijing anticipated to lead in rack installations. The government's focus on energy efficiency and low-carbon initiatives is prompting key market players to introduce advanced power management systems, such as PDUs, busways, and UPS, to optimize energy consumption and reduce costs. This trend is further supported by the rising demand for streaming services and the adoption of Industry 4.0 standards, which are contributing to the surge in data consumption and, consequently, the need for enhanced data center infrastructure.
The market landscape is highly competitive, with major players like Schneider Electric SE, ABB Ltd., Rittal GmbH & Co. KG, Fujitsu Limited, and Legrand Group actively engaging in strategies such as mergers, acquisitions, and partnerships to strengthen their market positions. The Chinese government's East-to-West Computing Capacity Diversion Project aims to centralize data center operations by establishing computing hubs and data center clusters, particularly in the western regions, where land and electricity costs are lower. This initiative is expected to boost the capacity of mega data centers significantly. Additionally, advancements in intelligent rack PDUs and other power management solutions are anticipated to further drive market growth, as companies continue to invest in infrastructure to meet the burgeoning demand for data storage and processing capabilities.
China Data Center Power Market Size - Table of Contents
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1. Market Dynamics
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1.1 Market Overview
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1.2 Market Drivers
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1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing
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1.2.2 Increasing Demand to Reduce Operational Costs
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1.3 Market Restraints
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1.3.1 High Cost of Installation and Maintenance
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1.4 Value Chain / Supply Chain Analysis
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1.5 Industry Attractiveness - Porter's Five Forces Analysis
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1.5.1 Threat of New Entrants
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1.5.2 Bargaining Power of Buyers/Consumers
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1.5.3 Bargaining Power of Suppliers
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1.5.4 Threat of Substitute Products
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1.5.5 Intensity of Competitive Rivalry
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1.6 Assessment of COVID-19 Impact
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2. MARKET SEGMENTATION
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2.1 Power Infrastructure
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2.1.1 Electrical Solution
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2.1.1.1 UPS Systems
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2.1.1.2 Generators
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2.1.1.3 Power Distribution Solutions
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2.1.1.3.1 PDU
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2.1.1.3.2 Switchgear
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2.1.1.3.3 Critical Power Distribution
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2.1.1.3.4 Transfer Switches
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2.1.1.3.5 Remote Power Panels
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2.1.1.3.6 Others
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2.1.2 Service
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2.2 End User
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2.2.1 IT & Telecommunication
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2.2.2 BFSI
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2.2.3 Government
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2.2.4 Media & Entertainment
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2.2.5 Other End User
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China Data Center Power Market Size FAQs
How big is the China Data Center Power Market?
The China Data Center Power Market size is expected to reach USD 1.30 billion in 2024 and grow at a CAGR of 6.56% to reach USD 1.94 billion by 2029.
What is the current China Data Center Power Market size?
In 2024, the China Data Center Power Market size is expected to reach USD 1.30 billion.
