Shanghai Data Center Market Size (2024 - 2029)

The Shanghai data center market is experiencing significant growth, driven by increased digitalization and consumer demands. Despite regulatory restrictions on new constructions within the metropolitan area, the market is expanding, particularly in the mega and massive data center segments. These segments are expected to grow rapidly, with a shift from large and medium data centers, which currently hold a substantial market share. The greater Shanghai region is poised for expansion in data center facilities, reflecting the city's status as a Tier 1 urban center with a substantial population and industrial base.

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Market Size of Shanghai Data Center Industry

Shanghai Data Center Market Summary
Study Period 2020 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 10.40 %
Market Concentration High

Major Players

Shanghai Data Center Market Major Players

*Disclaimer: Major Players sorted in no particular order

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.

DC Size
Small
Medium
Large
Massive
Mega
Tier Type
Tier 1 & 2
Tier 3
Tier 4
Absorption
Utilized
Colocation Type
Retail
Wholesale
Hyperscale
End User
Cloud & IT
Telecom
Media & Entertainment
Government
BFSI
Manufacturing
E-Commerce
Other End User
Non-Utilized
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Shanghai Data Center Market Size Summary

The Shanghai data center market is experiencing significant growth, driven by the rapid digitalization accelerated by the pandemic. As a Tier 1 city with a large population, Shanghai has seen increased demand for data centers due to growing consumer needs and industrialization. The market is characterized by a shift towards mega and massive data centers, with the mega segment expected to grow the fastest. Despite regulatory restrictions on new constructions within the metropolitan area, the greater Shanghai region is anticipated to see expansion in these segments. Virtualization and the rise of cloud and colocation services are further propelling the market, although challenges such as high initial investments and resource scarcity persist.

The banking and finance sector is a major driver of data center demand, as these institutions rely on data centers for operations like transaction processing and electronic banking services. The digital transformation in banking, coupled with the need for efficient data management, is pushing banks to adopt more advanced data center solutions. However, maintaining these facilities can be costly and complex, presenting challenges for the BFSI industry. The competitive landscape in Shanghai's data center market is moderate, with key players like China Telecom Corporation Ltd, Equinix, and GDS leading the charge. Despite challenges, the market continues to evolve, with new developments and strategic expansions underway.

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Shanghai 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

Shanghai Data Center Market Size FAQs

The Shanghai Data Center Market size is expected to reach 240.11 megawatt in 2024 and grow at a CAGR of 10.40% to reach 393.78 megawatt by 2029.

In 2024, the Shanghai Data Center Market size is expected to reach 240.11 megawatt.

Shanghai Data Center Market Report Snapshots

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