Shanghai Data Center Market Size (2024 - 2029)

Shanghai Data Center Market Analysis

The Shanghai Data Center Market size is estimated at 240.11 megawatt in 2024, and is expected to reach 393.78 megawatt by 2029, growing at a CAGR of 10.40% during the forecast period (2024-2029).

The pandemic led to the rapid acceptance of digitalization in the city. Since every industry suddenly became dependent on smart devices and the internet, the data center market grew during the pandemic.

• A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.
• Being a Tier 1 city, Shanghai has a population of around 24.89 million. Growing consumer needs and industrialization have led data center companies to set up regional facilities.
• Large and medium data centers had a combined market share of nearly 45% in 2022. SMEs are the primary customers of these data centers. However, the trend is expected to shift toward mega and massive data centers in the coming years. The category for mega data centers is expected to witness the fastest growth, followed by massive data centers, during the forecast period.
• In the past few years, the local government of Shanghai issued an industry regulation, 'Guiding Opinions on Strengthening the Coordinated Construction of Data Centers in this Municipality'. Under this guideline, new data center construction is banned within the metropolitan city region. New constructions must have a PUE of 1.3, wherein the data center must have 3,000 racks, and the average rack density must be 6 kW. Therefore, despite the ban on the construction of data centers within the main city, the mega data center segment is expected to witness in the greater Shanghai region. The segment for massive data centers is expected to increase from 6 MW to 55 MW during the forecast period.

Shanghai Data Center Industry Segmentation

A data center is a physical room, building, or facility that holds IT infrastructure used to construct, run, and provide applications and services and store and manage the data connected with those applications and services.

The Shanghai Data Center Market is segmented by DC Size (small, medium, large, massive, mega), by tier type (tier 1&2, tier 3, tier 4), by absorption (utilized [colocation type [Retail, Wholesale, Hyperscale], by end user [cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce]), Non-Utilized). The market sizes and forecasts are provided in terms of value (MW) for all the above segments.