Market Trends of China Data Center Power Industry
IT & Telecom are expected to hold a significant market share
- The country's growing demand for streaming services, such as Douyin, Kuaishou, Iqiyi, Youku, and Tencent Video, has increased data consumption owing to high-quality video streaming services. Netflix, a popular OTT platform used in many countries, is unavailable in China.
- However, short video platforms like Douyin and Kuaishou are preferred over OTT services. Around 931 million users streamed short videos, while only 464 million streamed through these platforms in 2023.
- The growing content demand is expected to increase the IT load capacity from 130.26 MW in 2023 to 165.24 MW by 2029, registering a CAGR of 3.46%. As most industries adopt Industry 4.0 standards and introduce automation in their factories, data consumption by end users is expected to increase.
- The manufacturing segment had an IT load capacity of 46.02 MW in 2023, and it is expected to increase to 128.52 MW by 2029, registering a CAGR of 13.49%. Chinese users prefer online modes of payment to cash, and increased use of financial services by the users is expected to increase the IT load consumption from 139.35 MW in 2023 to 275.40 MW by 2029, registering a CAGR of 10.22%.
Understand The Key Trends Shaping This Market
Download PDF
Monitored PDUs Hold a Significant Share in the Market
- Monitored rack PDUs are essential components in data center and server room infrastructure, providing real-time monitoring of power usage, voltage, current, and other electrical parameters. This data helps administrators make informed decisions about power allocation and capacity planning.
- By tracking power usage trends, administrators can plan for future growth and ensure that power capacity is not exceeded, preventing overloads that could lead to equipment failures. Also, it helps identify inefficiencies and optimize energy usage. This can lead to cost savings and a reduced environmental footprint by eliminating unnecessary power consumption. Also, it allows administrators remote access and control, reducing the need for physical presence and minimizing operational disruptions.
- Increasing focus on digitalization, internet penetration, and e-commerce sales across the country creates more need for storage facilities, resulting in huge demand for data centers and a rise in power consumption. The increased demand for data storage has led to the deployment of intelligent power distribution units (PDUs) against simple multi-socket rack installations with server and network equipment, which optimize power consumption in data centers.
- Because of the advancements mentioned with monitored PDUs and the necessity to reduce electricity consumption as per government measures in the country, key market players are focusing on introducing efficient power management systems. In May 2023, Eaton, which provides power management services, launched G3 Universal Input Rack PPDUs with dynamic C39 outlets capable of accommodating different plug configurations and input voltage requirements. To meet the most diverse data center rack power requirements, G3UPDU added new features.
- In May 2023, Legrand, a significant global provider of electrical and digital building infrastructures, introduced the next generation of intelligent rack PDUs PRO4X and Raritan PX4; these new intelligent rack PDU designs revolutionize capacity planning, environmental monitoring, physical and digital access control, workload optimization, and uptime initiatives. Such developments in the segment are expected to boost regional demand over the forecast period.
- The increased demand for computing and data processing led China to launch a huge national project to centralize the data center system, the East-to-West Computing Capacity Diversion Project.
- The Chinese government plans to build eight computing hubs and 10 data center clusters to build a unified data center system by 2025. The project aims to channel the growing demand from the east to the data centers in the western region of the country.
- Data center companies are investing in infrastructures in these regions where the land value is less, and electricity value is subsidized, leading to a preference for the mega segment. The capacity of mega data centers is expected to increase to 1,880.9 MW by 2029 from 921.7 MW in 2023, registering a CAGR of 9%, followed by massive, large, medium, and small data centers.
