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China Data Center Server Market Size (2024 - 2029)

The China data center server market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments by domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including the construction of IT load capacity, raised floor space, and the installation of racks. Additionally, the development of submarine cable systems is enhancing connectivity, further supporting the market's growth trajectory.

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Market Size of China Data Center Server Industry

China Data Center Server Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 10.88 Billion
Market Size (2030) USD 30.92 Billion
CAGR (2024 - 2030) 19.00 %
Market Concentration High

Major Players

China Data Center Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

China Data Center Server Market Analysis

The China Data Center Server Market size is estimated at USD 10.88 billion in 2024, and is expected to reach USD 30.92 billion by 2030, growing at a CAGR of 19% during the forecast period (2024-2030).

The China data center server market reached a value of USD 7.6 billion in the previous year, and it is further projected to register a CAGR of 19% during the forecast period. The increasing demand for cloud computing among (small and medium-sized enterprises) 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/region.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the China data center market is expected to reach 3300 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 12 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 599.4K units by 2029. Beijing is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to 19 submarine cable systems connecting China, and many are under construction. One such submarine cable that is estimated to start service in 2023 is Southeast Asia-Japan Cable 2 (SJC2), which stretches over 10,500 Kilometers with landing points from Chung Hom Kok, China.

China Data Center Server Industry Segmentation

A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.

The China data center server market is segmented by form factor (blade server, rack server, and tower server), by end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Form Factor
Blade Server
Rack Server
Tower Server
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-User
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China Data Center Server Market Size Summary

The China data center server market is experiencing significant growth, driven by the increasing demand for cloud computing, 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 number of racks, with Beijing anticipated to host the largest concentration of these facilities. The telecommunications sector, a major contributor to this growth, is witnessing a surge in network traffic, necessitating the expansion of data center servers to manage resources effectively. China's position as a leader in 5G deployment and its vast mobile-cellular user base further amplify the demand for data centers, as these infrastructures are crucial for supporting advanced telecommunications services.

The market is fairly consolidated, with major players like Huawei Technologies, Dell Inc., and Lenovo Group Limited dominating the landscape. These companies are focusing on expanding their market share through strategic collaborations and innovative product offerings, such as enhanced server capabilities for financial analytics and artificial intelligence applications. The increasing digitalization, coupled with the rise in online financial transactions and e-government services, is driving the demand for rack servers, which offer scalability and efficient space utilization. As China continues to bolster its computing power to advance domestic AI development, the data center server market is poised for continued expansion, reflecting the country's growing technological prowess and strategic focus on digital infrastructure.

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China Data Center Server Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increased Deployment of 5G and Network Traffic

      2. 1.2.2 Demand for Cloud Computing Among Enterprises

    3. 1.3 Market Restraints

      1. 1.3.1 High CaPex for Building Data Center Along With Security Challenges

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Form Factor

      1. 2.1.1 Blade Server

      2. 2.1.2 Rack Server

      3. 2.1.3 Tower Server

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-User

China Data Center Server Market Size FAQs

The China Data Center Server Market size is expected to reach USD 10.88 billion in 2024 and grow at a CAGR of 19% to reach USD 30.92 billion by 2030.

In 2024, the China Data Center Server Market size is expected to reach USD 10.88 billion.

China Data Center Server Market Report Snapshots

China Data Center Server Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)