China Data Center Construction Market Size (2024 - 2029)

The China Data Center Construction Market is poised for growth, driven by the increasing demand for data centers fueled by the adoption of cloud computing, IoT, and AI. The government's initiative to develop data center clusters under the 'Eastern Data, Western Computing' plan aims to enhance the balance of computing capacity across the country, supporting digital transformation. The expansion of the 5G network is expected to further boost data generation, increasing the need for data center space, particularly in industrial sectors. While construction costs in neighboring Asian countries have risen, making China a more attractive option for data center projects, geopolitical tensions have led some IT companies to seek opportunities elsewhere, potentially impacting the market size.

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Market Size of China Data Center Construction Industry

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China Data Center Construction Market Summary
Study Period 2021 - 2030
Base Year For Estimation 2023
Market Size (2024) USD 9.20 Billion
Market Size (2030) USD 15.70 Billion
CAGR (2024 - 2030) 9.23 %
Market Concentration Medium

Major Players

China Data Center Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

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China Data Center Construction Market Analysis

The China Data Center Construction Market size is estimated at USD 9.20 billion in 2024, and is expected to reach USD 15.70 billion by 2030, growing at a CAGR of 9.23% during the forecast period (2024-2030).

China houses more than 120 data center facilities, and it holds a majority in Asia-Pacific. The country's demand for newer data centers is due to the growing adoption of cloud computing, the Internet of Things (IoT), and artificial intelligence (AI).

  • The upcoming IT load capacity in the country is projected to cross 3,400 MW by 2030, boosting the demand for data center racks.
  • The construction of raised floor area for data centers in the country is expected to reach 12.5 million sq. ft by 2030 for under construction raised floor space.
  • The country's total number of installed racks will reach 620k units by 2030.
  • Currently, five submarine cable projects are under construction in the country. One such submarine cable is Asia Direct Cable (ADC), stretching over 9,800 kilometers with landing points in Chung Hom Kok, China, and Shantou, China, expected to come into service from Q4 2024.

China Data Center Construction Industry Segmentation

Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.

The Chinese data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, and other infrastructure)), power back-up solution (UPS and generators), service - design and consulting, integration, and support and maintenance)), (mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, in-row and in-rack cooling)), racks, and other mechanical infrastructure)), general construction)), tier type (tier 1 and 2, tier 3, and tier 4), end user (banking, financial services and insurance, IT and telecommunications, government and defense, healthcare, and other end users). The report offers market sizes and forecasts in USD values for all the above segments.

Market Segmentation - By Infrastructure
Market Segmentation - By Electrical Infrastructure
Power Distribution Solution
PDU - Basic and Smart - Metered and Switched Solutions
Transfer Switches
Static
Automatic (ATS)
Switchgear
Low-voltage
Medium-voltage
Power Panels and Components
Other Infrastructure
Power Back-up Solutions
UPS
Generators
Service - Design and Consulting, Integration, Support and Maintenance
Market Segmentation - By Mechanical Infrastructure
Cooling Systems
Immersion Cooling
Direct-to-chip Cooling
Rear Door Heat Exchanger
In-row and In-rack Cooling
Racks
Other Mechanical Infrastructure
General Construction
Market Segmentation - By Tier Type
Tier 1 and 2
Tier 3
Tier 4
Market Segmentation - By End User
Banking, Financial Services, and Insurance
IT and Telecommunications
Government and Defense
Healthcare
Other End Users
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China Data Center Construction Market Size Summary

The China Data Center Construction Market is poised for growth, driven by the increasing adoption of cloud computing, IoT, and AI technologies. The government's initiative to develop data center clusters under the 'Eastern Data, Western Computing' plan aims to enhance the balance of computing capacity across the country, supporting its digital transformation. The expansion of the 5G network is expected to further boost data generation, necessitating more data center space for storage and processing. This trend is anticipated to elevate the occupancy rates in data centers, thereby fueling construction demand. Additionally, the rising construction costs in neighboring Asian countries are making China a more attractive location for data center projects, despite challenges posed by security concerns and geopolitical tensions that have led some IT companies to explore opportunities in other countries.

The market is characterized by a preference for Tier-3 and Tier-4 data centers, which offer superior performance and reliability, catering to the needs of large businesses and critical data processing. The growth of the e-commerce and hi-tech sectors, supported by policies like 'Made in China 2025' and 'new infrastructure' development, is further propelling the market. The rapid expansion of the TMT sector and the increasing penetration of online shopping are significant contributors to market opportunities. The market is semi-consolidated, with major players like AECOM, DSCO Group, and NTT Facilities dominating the landscape. Recent investments in large-scale data center projects, such as those by NetEase and CapitaLand, highlight the ongoing commitment to sustainability and technological advancement in China's data center construction market.

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China Data Center Construction Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION

    1. 1.1 Market Segmentation - By Infrastructure

      1. 1.1.1 Market Segmentation - By Electrical Infrastructure

        1. 1.1.1.1 Power Distribution Solution

          1. 1.1.1.1.1 PDU - Basic and Smart - Metered and Switched Solutions

          2. 1.1.1.1.2 Transfer Switches

            1. 1.1.1.1.2.1 Static

            2. 1.1.1.1.2.2 Automatic (ATS)

          3. 1.1.1.1.3 Switchgear

            1. 1.1.1.1.3.1 Low-voltage

            2. 1.1.1.1.3.2 Medium-voltage

          4. 1.1.1.1.4 Power Panels and Components

          5. 1.1.1.1.5 Other Infrastructure

        2. 1.1.1.2 Power Back-up Solutions

          1. 1.1.1.2.1 UPS

          2. 1.1.1.2.2 Generators

        3. 1.1.1.3 Service - Design and Consulting, Integration, Support and Maintenance

      2. 1.1.2 Market Segmentation - By Mechanical Infrastructure

        1. 1.1.2.1 Cooling Systems

          1. 1.1.2.1.1 Immersion Cooling

          2. 1.1.2.1.2 Direct-to-chip Cooling

          3. 1.1.2.1.3 Rear Door Heat Exchanger

          4. 1.1.2.1.4 In-row and In-rack Cooling

          5. 1.1.2.1.5 Racks

          6. 1.1.2.1.6 Other Mechanical Infrastructure

      3. 1.1.3 General Construction

    2. 1.2 Market Segmentation - By Tier Type

      1. 1.2.1 Tier 1 and 2

      2. 1.2.2 Tier 3

      3. 1.2.3 Tier 4

    3. 1.3 Market Segmentation - By End User

      1. 1.3.1 Banking, Financial Services, and Insurance

      2. 1.3.2 IT and Telecommunications

      3. 1.3.3 Government and Defense

      4. 1.3.4 Healthcare

      5. 1.3.5 Other End Users

China Data Center Construction Market Size FAQs

The China Data Center Construction Market size is expected to reach USD 9.20 billion in 2024 and grow at a CAGR of 9.23% to reach USD 15.70 billion by 2030.

In 2024, the China Data Center Construction Market size is expected to reach USD 9.20 billion.

China Data Center Construction Market Report Snapshots

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