Beijing Data Center Market Size (2024 - 2029)

The Beijing Data Center Market is experiencing significant growth, driven by increased data consumption from various sectors such as finance, online gaming, and artificial intelligence. Despite regulatory challenges aimed at reducing carbon emissions, which restrict the expansion of data centers in urban areas, the demand for mega data centers continues to rise due to Beijing's industrial and densely populated nature. The local government's emphasis on renewable energy and efficiency standards is shaping the market's development, with a clear focus on sustainable growth.

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Market Size of Beijing Data Center Industry

Beijing Data Center Market Summary
Study Period 2018 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2018 - 2022
CAGR (2024 - 2029) 9.05 %
Market Concentration Medium

Major Players

Beijing Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

Beijing Data Center Market Analysis

The Beijing Data Center Market size is estimated at 217.5 megawatt in 2024, and is expected to reach 335.42 megawatt by 2029, growing at a CAGR of 9.05% during the forecast period (2024-2029).

  • 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 them.
  • Beijing, the financial capital of China, witnessed an increase in data consumption due to factors such as financial transactions, online gaming, streaming content, the adoption of smart home automation, and emerging artificial intelligence industries, which triggered the growth of data centers in the region.
  • Owing to growing carbon footprint emissions, Beijing has been at the forefront of regulations in the country since 2014. It has already prohibited the building and expanding data centers in central urban areas while diverting activity to surrounding Tianjin and Hebei. The city's local government released a draft plan to mandate that data centers completed in 2021 and after must include renewable energy in their power sources and incrementally increase the share of renewables by 10% each year to 100% by 2030. Higher power tariffs will hit existing data centers that do not meet efficiency standards. The government is also planning to phase out older facilities with PUE levels of over 2.0.
  • Mega data centers are the most preferred type in Beijing. Their capacity is expected to increase consistently in the region. Being industrial and highly populated, Beijing has a growing demand for massive and mega data centers. On the other hand, small, medium, and large data centers are expected to witness stagnant growth over the years.

Beijing 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, as well as store and manage the data connected with those applications and services.

The Beijing data center market is segmented by DC size (small, medium, large, massive, mega), by tier type (tier 1 and 2, Tier 3, Tier 4), by absorption (utilized, colocation type [retail, wholescale, hyperscale], end user [cloud & IT, telecom, media & entertainment, government, BFSI, manufacturing, e-commerce], and non-utilized). The market sizes and forecasts are provided in terms of value (MW) for all the above segments.

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Beijing Data Center Market Size Summary

The Beijing data center market is experiencing significant growth, driven by the city's status as China's financial capital and the increasing demand for data-driven services such as financial transactions, online gaming, and smart home automation. The market is characterized by a preference for mega data centers, which are expected to see consistent capacity increases due to the region's industrial and densely populated nature. However, regulatory measures aimed at reducing carbon emissions have led to restrictions on new data center constructions in central urban areas, with a focus on promoting renewable energy sources. This has resulted in a shift of data center activities to surrounding regions like Tianjin and Hebei, where new large-scale facilities are being developed. Despite these challenges, Beijing remains a key player in the data center industry, holding a significant market share, second only to Shanghai.

The banking and financial services sector in Beijing is a major driver of data center demand, as the digital revolution compels banks to adopt advanced CRM and cloud tools to meet evolving consumer expectations. The rise of digital banking and fintech innovations has necessitated the integration of cloud-based solutions to enhance data management and customer engagement. Companies like Chindata Group Holdings Ltd. are leading the market with substantial investments in data center infrastructure, while China Telecom Corporation holds a significant market share. The introduction of funds like CapitaLand China Data Centre Partners is expected to further stimulate market growth. As data sensitivity remains a concern, hybrid cloud solutions are anticipated to see increased adoption among BFSI enterprises, reflecting the sector's ongoing transformation and reliance on cloud technology to address market challenges.

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Beijing Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 DC Size

      1. 1.1.1 Small

      2. 1.1.2 Medium

      3. 1.1.3 Large

      4. 1.1.4 Massive

      5. 1.1.5 Mega

    2. 1.2 Tier Type

      1. 1.2.1 Tier 1 & 2

      2. 1.2.2 Tier 3

      3. 1.2.3 Tier 4

    3. 1.3 Absorption

      1. 1.3.1 Utilized

        1. 1.3.1.1 Colocation Type

          1. 1.3.1.1.1 Retail

          2. 1.3.1.1.2 Wholesale

          3. 1.3.1.1.3 Hyperscale

        2. 1.3.1.2 End-User

          1. 1.3.1.2.1 Cloud & IT

          2. 1.3.1.2.2 Telecom

          3. 1.3.1.2.3 Media & Entertainment

          4. 1.3.1.2.4 Government

          5. 1.3.1.2.5 BFSI

          6. 1.3.1.2.6 Manufacturing

          7. 1.3.1.2.7 E-Commerce

          8. 1.3.1.2.8 Other End-User

      2. 1.3.2 Non-Utilized

Beijing Data Center Market Size FAQs

The Beijing Data Center Market size is expected to reach 217.5 megawatt in 2024 and grow at a CAGR of 9.05% to reach 335.42 megawatt by 2029.

In 2024, the Beijing Data Center Market size is expected to reach 217.5 megawatt.

Beijing Data Center Market Report Snapshots

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