As per MRFR analysis, the China Data Center Market Size was estimated at 29.96 (USD Billion) in 2023.
The China Data Center Market is expected to grow from 35.01 (USD Billion) in 2024 to 138.0 (USD Billion) by 2035. The China Data Center Market CAGR (growth rate) is expected to be around 13.28% during the forecast period (2025 - 2035).
The market for data centers in China is expanding significantly due to the rise in demand for big data analytics and cloud services. Many businesses are making significant investments in modernizing their infrastructure in order to meet the nation's growing demands for data processing and storage as it moves toward digital transformation.
Through a number of programs designed to foster innovation in the high-tech industry, which includes data centers, the government is aggressively supporting this trend.
Additionally, new data facilities are being established as a result of the emphasis on improving internet connection, especially in rural and isolated locations. Sustainability and energy efficiency are also emerging as major industry drivers.
China is adopting energy-efficient designs for new data centers as a result of its emphasis on green technologies. In addition to addressing environmental issues, this movement supports governmental initiatives to lower carbon emissions. Data centers are increasingly being powered by renewable energy, which reflects a larger commitment to sustainable development.
The China data center market offers a wealth of opportunities, especially in the areas of edge computing and hybrid cloud solutions.
Edge computing is predicted to grow quickly as companies need faster access to data processing nearer to the source. Additionally, businesses can capitalize on expansion by offering specialized services catered to regional markets like artificial intelligence, gaming, and e-commerce.
The incorporation of cutting-edge technology like machine learning and artificial intelligence into data center operations has been a major trend in recent years.
By providing better data management and resource allocation, these solutions increase operational effectiveness. All things considered, the China data center market is changing and offers a range of opportunities for expansion and creativity in the face of a rapidly changing technical environment.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The increase in internet users in China is a significant driver for the China Data Center Market. As of 2022, the number of internet users in China reached approximately 1.05 billion, reflecting a year-on-year increase of about 9.4%. This surge in users leads to heightened demand for data storage and processing capabilities.
Established organizations like Alibaba Cloud and Tencent are actively expanding their data center infrastructures to accommodate this growing user base, highlighting the need for more robust data center solutions.
Additionally, the China government's initiatives to achieve a fully connected society by 2035 further emphasize the importance of digital infrastructure, making the China Data Center Market indispensable for future growth. The National Internet Information Office of China has set plans to enhance internet accessibility, driving investment into data centers that support this expansion.
The China government has been promoting digital transformation across multiple sectors, driving the demand for data centers in the China Data Center Market.
Policies such as the '14th Five-Year Plan for Digital Economy Development' outline strategies to spur the digital economy, which aims for the digital transformation of traditional industries by accelerating investments in data centers and cloud computing infrastructures. The plan anticipates investments upward of USD 2 trillion over the next few years in key sectors.
This governmental push underscores the necessity for advanced data solutions, prompting tech giants like Huawei and Baidu to innovate and expand data center capabilities to meet the anticipated demand. The stated objectives are directly aligned with government efforts to establish a strong digital ecosystem, thereby solidifying the potential for market growth in the coming years.
The rapid adoption of cloud services in China significantly drives the China Data Center Market. According to recent assessments, the cloud services market is expected to reach USD 37 billion by 2023, growing at an impressive annual rate.
Major cloud providers like Tencent Cloud and Alibaba Cloud are continuously expanding their data center portfolios to meet this escalating demand for cloud solutions. This adoption is attributed to the increasing need for scalable infrastructure combined with enhanced performance and flexibility.
Enterprises are migrating to cloud-based environments to optimize their operational efficiencies, and as more businesses transition to cloud services, the demand for data centers to support this infrastructure becomes even more critical. The growing trend towards digitalization across industries only underscores the ongoing need for cloud-based data management solutions in China.
With heightened concerns around data security and regulatory compliance, the China Data Center Market is witnessing a shift toward more secure data storage solutions.
Regulatory frameworks such as the Personal Information Protection Law (PIPL) enacted in 2021 impose strict guidelines on data handling and storage for organizations operating in China. This has led many businesses to invest in localized data centers to ensure compliance with these regulations.
Companies like JD.com and Xiaomi are prioritizing the establishment of secure data centers to manage consumer data effectively and adhere to compliance mandates. As a result, the demand for advanced security features and reliable data center operations has never been more essential, facilitating growth within the sector and reinforcing the need for trustworthy data management systems in China.
The China Data Center Market, delineated by various types, showcases a diverse and dynamic landscape that is driving significant growth in the industry. In particular, corporate data centers and web hosting data centers are notable components that play crucial roles in the market's expansion.
Corporate data centers support business operations by providing secure, reliable, and scalable infrastructure tailored to meet specific organizational needs. They are essential for enterprises looking to enhance their digital capabilities and ensure data sovereignty, especially given the regulatory environment in China that emphasizes data security and privacy.
On the other hand, Web hosting data centers have gained prominence due to the rapid growth of online services and applications, significantly contributing to the digital economy. As more businesses leverage cloud services and e-commerce platforms, the demand for Web hosting solutions continues to surge.
This sub-segment not only serves individual customers but also supports small to medium-sized enterprises seeking cost-effective hosting solutions, aiding in their scalability and growth. The significance of these types of data centers is illustrated by their ability to cater to varying needsfrom shared hosting to dedicated resourcesthus accommodating a diverse clientele.
Furthermore, the interplay between these types drives innovation and competition. As companies within China look to enhance operational efficiencies and reduce latency, the development of hyper-scale data centers has become increasingly relevant.
This trend is supported by advancements in technology, such as AI and machine learning, which are now being integrated into data center operations, optimizing energy consumption and improving overall performance. The energy efficiency and sustainability aspects are becoming paramount, particularly as China aims to peak carbon emissions by 2030.
In terms of market growth dynamics, government initiatives favoring the digital economy bolster investments in both Corporate and Web hosting data centers. Local policies are increasingly supportive of technology infrastructure, encouraging the establishment and upgrade of data centers nationwide, contributing significantly to the digital ecosystem.
While these types of data centers currently cater to varying market segments, their joint evolution reflects the broader technological shifts occurring across China, serving businesses and consumers alike and laying the groundwork for future digital developments.
Overall, understanding the China Data Center Market segmentation allows for a more comprehensive analysis of its trends, growth drivers, challenges, and opportunities, establishing a clear view of its trajectory in the coming years.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The China Data Center Market is experiencing notable growth within the Density segment, which encompasses various configurations, including Low, Medium, High, and Extreme density levels. Each of these configurations serves specific needs, reflecting the diverse requirements across different industries.
Low-density data centers tend to be cost-effective and are commonly utilized for less demanding applications, whereas Medium density environments can efficiently support a balance of performance and energy use. High-density setups have gained traction as enterprises aim for enhanced computing power in limited physical space, thus optimizing their operations.
On the other hand, Extreme density configurations are essential for high-performance computing and data-intensive applications, catering to sectors like artificial intelligence and big data analytics. China's commitment to advancing its digital economy and robust demand for cloud services are key drivers propelling the growth of these density categories.
The rapid adoption of technologies such as 5G and IoT further necessitates sophisticated data center configurations to manage vast data volumes. As the landscape evolves, understanding these density dynamics is crucial for stakeholders aiming to capitalize on the burgeoning opportunities within the China Data Center Market.
The China Data Center Market is gaining momentum, particularly within the Vertical segment, which encompasses critical sectors such as Banking, Financial Services, Telecom IT, Government, and Healthcare.
The rapid digitization in China has resulted in an increased demand for data processing and storage capabilities, especially in Banking Financial Services, where the focus on cybersecurity and data compliance drives growth. The Telecom IT industry further contributes to this trend, supporting the demand through advanced connectivity solutions and network efficiency improvements.
Government initiatives aimed at enhancing digital infrastructure further solidify the importance of data centers, facilitating public services and e-governance. Moreover, the Healthcare sector requires robust data management for patient records and telemedicine, leading to significant growth in data center investments.
As these industries evolve, the demand for specialized data center solutions continues to rise, shaping key trends and opportunities in the market while addressing specific sector needs. The overall dynamics reveal a cohesive interplay of technological advancement and regulatory frameworks, underscoring why this Vertical segment is vital to the broader landscape of the China Data Center Market.
The China Data Center Market is characterized by rapid growth and intense competition driven by the increasing demand for cloud computing, big data analytics, and digital transformation across various industries.
The market landscape is framed by a mix of local and international players, each striving to establish a foothold amidst evolving consumer preferences and technological advancements. The vast scale of China’s internet user base and the government's initiatives to promote digital infrastructure development present unique opportunities for data center operators.
Competitive dynamics are influenced by factors such as energy efficiency, service reliability, cost-effectiveness, and compliance with regulations. Additionally, the ongoing trend of remote work and heightened reliance on online services have further spurred investment in this sector, prompting companies to innovate and diversify their service offerings.
Digital Realty has made a significant impact within the China Data Center Market by leveraging its global expertise and extensive portfolio. The company has successfully positioned itself as a leader in providing robust collocation and interconnection solutions throughout the region.
With a strong emphasis on sustainability, Digital Realty has invested in energy-efficient technologies and practices, aligning with China's growing focus on green initiatives. The company's strategic partnerships and local collaborations have enhanced its market presence, allowing it to cater to the specific needs of China enterprises.
Digital Realty's commitment to strong operational efficiency and customer-centric solutions has bolstered its competitive edge, enabling it to effectively serve a diverse clientele while adapting to the rapid shifts in technological demands.
NTT Communications has established a noteworthy presence in the China Data Center Market, offering a comprehensive suite of services, including data center operations, cloud services, and network connectivity.
The company’s focus on innovation and customer requirements has positioned it as a reliable player in the region, maintaining high standards of service quality and operational excellence. NTT Communications boasts a network of state-of-the-art data centers strategically located across key areas in China, allowing for low-latency connections and efficient resource management.
The company's strengths lie in its commitment to security, redundancy, and disaster recovery solutions, perfectly aligning with the expectations of enterprises in the region.
Furthermore, NTT Communications has engaged in strategic mergers and acquisitions that have expanded its service capabilities and strengthened its foothold in China, making it a formidable competitor in the increasingly competitive data center landscape.
Digital Realty
NTT Communications
China Mobile
Alibaba
Huawei
Inspur
Baidu
Tencent
VMware
Chayora
Equinix
Lenovo
China Telecom
GDS Holdings
China Unicom
In October 2023, China's data center market continues to evolve, driven by robust demand for cloud services and enhanced digital infrastructure.
Significant developments include initiatives by major companies such as Alibaba and Tencent, both expanding their data center regions to accommodate the increasing needs of big data and AI applications. Furthermore, NTT Communications is notably collaborating with local firms to optimize energy-efficient data center solutions amid the country’s push for carbon neutrality.
In recent mergers, GDS Holdings announced its acquisition of a stake in a strategic data center joint venture with China Telecom in September 2023, positioning itself for future growth within the burgeoning industry. Equinix, also expanding its presence, is focusing on Tier-1 cities, tapping into the high-speed connectivity demands.
In August 2023, China Mobile completed investments to enhance its data center capacity in several provinces, signaling a broader trend towards state-led initiatives in expanding digital infrastructure.
Market valuations for companies such as Inspur and Huawei have shown increased growth, reflecting their positions as key players in supporting the digital economy within China. The ongoing development signals a vibrant shift towards modernized data management solutions across the landscape.
Corporate data centers
Web hosting data centers
Low
Medium
High
Extreme
Banking Financial Services
Telecom IT
Government
Healthcare
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 29.96(USD Billion) |
| MARKET SIZE 2024 | 35.01(USD Billion) |
| MARKET SIZE 2035 | 138.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 13.28% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Digital Realty, NTT Communications, China Mobile, Alibaba, Huawei, Inspur, Baidu, Tencent, VMware, Chayora, Equinix, Lenovo, China Telecom, GDS Holdings, China Unicom |
| SEGMENTS COVERED | Type, Density, Vertical |
| KEY MARKET OPPORTUNITIES | Cloud computing expansion, Renewable energy integration, Enhanced data security requirements, Edge computing growth, Government investments in infrastructure |
| KEY MARKET DYNAMICS | Cloud computing adoption, Government regulations and incentives, Energy efficiency demands, 5G rollout impact, Increased data privacy concerns |
| COUNTRIES COVERED | China |
Frequently Asked Questions (FAQ) :
The China Data Center Market is expected to be valued at 35.01 billion USD in 2024.
By 2035, the China Data Center Market is projected to reach a value of 138.0 billion USD.
The expected CAGR for the China Data Center Market from 2025 to 2035 is 13.28%.
The China Data Center Market is segmented into Corporate data centers and Web hosting data centers.
Corporate data centers in the China Data Center Market are valued at 14.0 billion USD in 2024.
Web hosting data centers are valued at 21.01 billion USD in the China Data Center Market in 2024.
Key players in the China Data Center Market include Digital Realty, NTT Communications, China Mobile, Alibaba, and Huawei.
Corporate data centers are expected to grow to 56.52 billion USD by 2035.
Web hosting data centers are projected to reach a value of 81.48 billion USD by 2035.
Emerging trends in the China Data Center Market include increased demand for cloud services and energy-efficient technologies.
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