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Chinese Data Center Market Expected to Cross $36 Billion by 2025


The China Data Center Market was valued at USD 13.01 billion in 2019, and it is expected to reach a value of USD 36.18 billion by 2025, while registering a CAGR of 19.2% during the period of 2020-2025.To get more news about china industry research centers, you can visit acem.sjtu.edu.cn official website.

Growing demand for computing power is driving data center efforts in the country. The country is boosting its computing power and has become a prominent nation in terms of supercomputer volume. China continues to rise and now as of June 2020, has 227 supercomputers, up from 219 previous June, in the top 500 list as per the data published by top500.org. The US was a distant second at 113 supercomputers on the global list.
Moreover, China is highly focusing to take the lead over global peers in data center construction, with larger enterprises looking to scale up their data centers to ensure stability and reliability of data services, as the application of 5G, wearable devices, internet of things, and artificial intelligence spurs a burgeoning demand for computing power.
Further the country has active data center players who have increased their focus on investing in constructing new data center facilities. For instance, Alibaba Cloud has recently completed the construction of three super data centers in Hangzhou, and Ulanqab City, Nantong. Together, they provide enough space to host one million additional servers. Recently in April 2020, the company announced that it was planning to spend CNY 200 billion (USD 28.2 billion) on its cloud infrastructure over three years. The expansion was said to be driven by the increased demand for digital resources resulting from the COVID-19 pandemic.
The outbreak of the COVID-19 pandemic has increased data usage. According to a report on the impact of the COVID-19 pandemic on China's entertainment industry by Maoyan Entertainment, a leading platform providing innovative Internet-empowered entertainment services in China, movie industry was severely hit by the pandemic, the online entertainment market, including TV and streaming platforms, were booming as people were confined to their homes. As China gradually emerges and recovers from its Coronavirus lockdown, it's clear that video streaming, e-commerce, games, and other businesses that rely on data centers will be in more substantial positions. The whole nation, 1.3 billion people, was locked down from early January until late March relied on e-commerce and home delivery, but the occasional breakdowns meant that, once the pandemic is safely over, the new investment will follow.
The competitive rivalry in the China data center market is high owing to the presence of some major players such as Alibaba Group Holding Limited, China Mobile amongst others. Their ability to continually innovate their offerings has allowed them to gain a competitive advantage over other players. Through strategic partnerships, research & development, and mergers & acquisition they have been able to gain a stronger foothold in the market.