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China Data Center Market Size

The China Data Center Market is projected to experience significant growth in its market size over the forecast period. The expansion is driven by the increasing demand for colocation services, with Tier 3 and Tier 4 data centers being the most sought after due to their superior features and performance. Tier 3 data centers are particularly favored for their on-site assistance and redundancy, catering to the scalability needs of businesses. Although Tier 1 and Tier 2 data centers are less preferred due to their limitations, they attract small businesses and startups due to lower costs. Overall, the market is set to grow as businesses increasingly rely on data centers to support their operations and growth strategies.

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Market Size of china data center Industry

China Data Center Market Summary
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svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 2.32 Thousand MW
svg icon Market Volume (2029) 3.35 Thousand MW
svg icon Largest Share by Tier Type Tier 3
svg icon CAGR (2024 - 2029) 7.64 %
svg icon Fastest Growing by Tier Type Tier 4
svg icon Market Concentration Low

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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China Data Center Market Analysis

The China Data Center Market size is estimated at 2.32 thousand MW in 2024, and is expected to reach 3.35 thousand MW by 2029, growing at a CAGR of 7.64%. Further, the market is expected to generate colocation revenue of USD 4,293 Million in 2024 and is projected to reach USD 6,204.6 Million by 2029, growing at a CAGR of 7.64% during the forecast period (2024-2029).

USD 4,293.05 Million

Market Size in 2024

USD 6,204.5 Million

Market Size in 2029

44.2%

CAGR (2017-2023)

7.6%

CAGR (2024-2029)

IT Load Capacity

2,317 MW

Value, IT Load Capacity, 2024

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The IT load capacity of the Chinese data center market expected to reach a capacity of 3348.8 MW by 2029. Factors such as digital transactions, online gaming, and adoption of smart home automation, witnessed an increase in data consumption.

Total Raised Floor Space

Sq. Ft. 8.30 M

Volume, Raised Floor Space, 2024

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The total raised floor area of the country is expected to reach 11.9 million sq. ft by 2029. Space DC Pte Ltd is expected to strengthen its position in the Chinese market with the launch of its 225 MW DC facility in Wuhan by 2024-25.

Installed Racks

414,758

Volume, Installed Racks, 2024

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The total number of installed racks is expected to reach 599,433 units by 2029. Hebei is expected to house the maximum number of racks in the coming years.

# of DC Operators & DC Facilities

14 and 157

Volume, DC Facilities, 2024

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DC facilities are shifting towards tier 4 standards due to the increasing uptime demand and 24/7 service continuity contracts. Digital Group has the highest number of Tier 4 certified facilities, in terms of IT load capacity.

Leading Market Player

29.5%

Market Share, Space DC Pte Ltd., 2023

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Space DC Pte Ltd is a leading player in the Chinese data center market. It is expected to maintain its leading position by expanding its mega data center facilities in Hubei and Guangzhou during the forecast period.

Tier 3 data center accounted for majority share in terms of volume in 2023, Tier 4 is fastest growing segment

  • Tier 3 data centers are the most preferred due to features such as on-site assistance, power, and cooling redundancy. The segment is expected to grow from 1,115.1 MW in 2022 to 1,874 MW by 2029 at a CAGR of 5.7%. These data centers are mainly chosen by companies for storing and processing business-critical data to cater to their growing business and scalability needs. There are around 110 Tier 3 data centers in the country, and around 37 upcoming data centers are under construction with Tier 3 specifications.
  • Tier 4 data centers are the next most preferred by large businesses due to their performance, lower downtime, and 99.99% uptime. These data centers are relatively costly; however, the performance offered by them outweighs the price and supports the competitive and growing needs of large businesses. In 2022, the country had seven Tier 4 data centers owned by Princeton Digital Group and SpaceDC Pte Ltd.
  • Tier 1 & 2 data centers are the least preferred due to their higher downtime durations, power and cooling redundancies, and on-site remote assistance. Since these data centers are relatively cheap compared to Tier 3 and Tier 4, small businesses and startup companies prefer them. Since Tier 1 & 2 data centers are the least preferred, stagnant growth could be seen during the forecast period.
China Data Center Market

China Data Center Industry Segmentation

Beijing, Guangdong, Hebei, Jiangsu, Shanghai are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • Tier 3 data centers are the most preferred due to features such as on-site assistance, power, and cooling redundancy. The segment is expected to grow from 1,115.1 MW in 2022 to 1,874 MW by 2029 at a CAGR of 5.7%. These data centers are mainly chosen by companies for storing and processing business-critical data to cater to their growing business and scalability needs. There are around 110 Tier 3 data centers in the country, and around 37 upcoming data centers are under construction with Tier 3 specifications.
  • Tier 4 data centers are the next most preferred by large businesses due to their performance, lower downtime, and 99.99% uptime. These data centers are relatively costly; however, the performance offered by them outweighs the price and supports the competitive and growing needs of large businesses. In 2022, the country had seven Tier 4 data centers owned by Princeton Digital Group and SpaceDC Pte Ltd.
  • Tier 1 & 2 data centers are the least preferred due to their higher downtime durations, power and cooling redundancies, and on-site remote assistance. Since these data centers are relatively cheap compared to Tier 3 and Tier 4, small businesses and startup companies prefer them. Since Tier 1 & 2 data centers are the least preferred, stagnant growth could be seen during the forecast period.
Hotspot
Beijing
Guangdong
Hebei
Jiangsu
Shanghai
Rest of China
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
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China Data Center Market Size Summary

The China Data Center Market is experiencing significant growth, driven by the increasing demand for data storage and processing capabilities. The market is characterized by a preference for Tier 3 and Tier 4 data centers, which offer advanced features such as power and cooling redundancy, on-site assistance, and high uptime, making them suitable for large businesses and critical data operations. The expansion of smartphone users and the proliferation of 4G and 5G connectivity have further fueled this growth, as more businesses seek to leverage cloud and colocation services to meet the rising demand for data management. The government's "Broadband China Strategy" has also played a crucial role in enhancing broadband connectivity, particularly in remote areas, thereby supporting the infrastructure needed for data centers to operate efficiently.

The market is fragmented, with major players like China Telecom Corporation Ltd, Equinix Inc., and Princeton Digital Group leading the charge. These companies are actively expanding their operations and investing in green energy initiatives to reduce carbon footprints. The deployment of fiber optic cables has been a key factor in improving last-mile connectivity, offering better bandwidth and speed compared to traditional copper cables. This enhanced connectivity is vital for maintaining communication between data centers and internet exchanges, ensuring optimal performance and uptime. As the market continues to evolve, the focus on sustainable and high-speed data solutions is expected to drive further growth and innovation in the coming years.

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China Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Beijing

      2. 1.1.2 Guangdong

      3. 1.1.3 Hebei

      4. 1.1.4 Jiangsu

      5. 1.1.5 Shanghai

      6. 1.1.6 Rest of China

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

China Data Center Market Size FAQs

The China Data Center Market is projected to register a CAGR of 7.64% during the forecast period (2024-2029).

China Telecom Corporation Ltd, Equinix Inc., GLP Pte Limited, Keppel DC REIT Management Pte. Ltd and Princeton Digital Group are the major companies operating in the China Data Center Market.

China Data Center Market Report Snapshots

China Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029