Data Center Market in China and Hong Kong - Industry Outlook and Forecast 2020-2025

Data Center Market in China and Hong Kong - Industry Outlook and Forecast 2020-2025

In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this China and Hong Kong Data Center Market Report

The China and Hong Kong data center market by revenue is expected to grow at a CAGR of close to 2% during the period 2019–2025.

China and Hong Kong data center market size is expected to reach revenue of close to $27 billion by 2025, growing at a CAGR close to 2% during the forecast period. The data center market in China & Hong Kong is likely to be driven by the increase in the investment in artificial intelligence, blockchain, and quantum computing. The market for artificial intelligence (AI) is projected to over $10 billion in 2025. In 2018, AI investments in China were around $8 billion, which is likely to increase strongly after the recovery of the economy from the COVID-19 pandemic. China is among the leader in blockchain technology. The government announced the creation of Blockchain Network (BCN) across 100 cities, which will add developers to build an application without investing in the blockchain framework. Also, the promotion of blockchain to make a predominant technology for online payments is driving the market. Several organizations and government agencies in China currently use blockchain technology, which is expected to grow significantly over the next few years.

The following factors are likely to contribute to the growth of the China and Hong Kong data center market during the forecast period:
Renewable Energy Procurement to Reduce Electricity Cost
Increasing Adoption of Cloud Services
Implementation of 5G and Smart City Initiatives to Drive Edge Data Center Deployments

The study considers the present scenario of the China and Hong Kong data center market and its market dynamics for the period 2019−2025. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspect of the market. It profiles and examines leading companies and other prominent ones operating in the market.

China and Hong Kong Data Center Market Segmentation
The China and Hong Kong data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, tier standards, and geography. The server market in China and Hong Kong is expected to witness significant growth in the next few years due to investments from major cloud service providers. Apple, Alibaba, Tencent, Baidu, and China Telecom are the major cloud service providers operators investing in the region.
Mega data center projects in China are designed to be of Tier III and Tier IV standards, with the increased deployment of 2N redundant UPS systems. The construction of data centers of over 20 MW power capacity will increase the demand for high-capacity infrastructure over 1 MW. Most facilities support rack power density of 5−10 kW; however, it is expected that new facilities will support a capacity of 20 kW during the forecast period.

In China and Hong Kong, the majority of data center operators are deploying UPS systems in N+N with flexible design supporting up 2N+1 redundant UPS systems. The increase in the development of hyperscale facilities will increase the UPS installation of over 1 MW capacity. Also, hyperscale operators will be involved in adopting in-rack/in-row UPS systems supporting capacity of less than 100 kVA.

In China, a majority of data centers offer colocation services adopt air as well as water-based cooling techniques. Some facilities are built to support free cooling techniques. Several service providers use energy-efficient free cooling techniques with redundant units to keep the data center operational. The adoption of CRAC units and chillers will continue to grow to cool the facility in the China data center market.

China is a leader in greenfield data center construction. Hyperscale developments are to increase the demand for engineering services in China. The construction cost of facilities can range from $50 to $80 per square, which is lower than Hong Kong, which is around $200 per square feet. In terms of physical security, most service providers prefer four layers of safety, with a few engaged in the implementation of five-layer ones due to the increasing demand for colocation services. CCTV surveillance, access control, anti-tailing doors, metal detectors, and X-ray machines are the major security measures installed in data centers. Hong Kong is likely to have high brownfield deployments due to the space shortage. Innovations in connected security products are providing a boost for market growth. Data center operators prefer the analytics of video surveillance recording. Modern facilities are also protected from EMP and lightning during natural disasters. In the coming years, the market will witness the increased use of robot monitoring systems in the facility, with sensor and video surveillance.

Most new data centers are designed to be of Tier III standards with a minimum of N+1 redundancy and can be reconfigured with up to 2N+1 redundancy as the need arises, with the incorporation of flexible designs. Tier IV facilities are equipped with at least 2N+1 redundancy in every infrastructure that makes the facility fault-tolerant, with UPS systems and PDUs having 2N+2 redundancy. These facilities generate more revenue for the market, with focused investment on highly efficient cooling systems. A majority of facilities developed in China and Hong Kong follow the Uptime Institute guidelines in design, construction, and operational sustainability. Expertise in designing and building facilities based on the guideline’s providers by the above-mentioned regulatory body would be beneficial for local contractors.

Segmentation by IT Infrastructure
Server Infrastructure
Storage Infrastructure
Network Infrastructure
Segmentation by Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgears
PDUs
Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
Cooling Systems
CRAC & CRAH Units
Chiller Units
Cooling Towers & Dry Coolers
Economizers & Evaporative Coolers
Other Units
Racks
Other Mechanical Infrastructure
Segmentation by General Construction
Building Development
Installation & Commissioning Services
Building Designs
Physical Security
DCIM/BMS
Segmentation by Tier Standard
Tier I & Tier II
Tier III
Tier IV

INSIGHTS BY GEOGRAPHY
China is the prominent market for data center operations in the APAC region. The continuous booming of internet users, the growth in gaming and e-commerce industries, and investments in the digitalization of enterprises increase the demand for data centers. Tier I cities such as Beijing, Shanghai, Shenzhen, and Guangzhou are the major data center markets in the country. In China, the investment is led by internet, cloud, colocation, and telecommunication service providers such as Alibaba, China Unicom, Shanghai Athub, ChinData, Qnet, China Telecom, Chayora, GDS Services, ChinaCache, Dr.Peng Group, Wangsu Technology, Tencent, Sinnet Technology, 21Vianet, and China Mobile. The data center market in China is increasing YOY aided by the strong growth in the advantage of technological adoption across the country and the increase in the number of submarine cable deployments connecting China. There is a high demand for cryptocurrency and blockchain data centers in China, boosting the development of facilities with high-performance computing infrastructure.

Segmentation by Geography
China
Hong Kong

INSIGHTS BY VENDORS
The data center construction market in China and Hong Kong is continuing to grow in terms of greenfield and brownfield facility construction. The market is still witnessing increased growth in the number of data centers, with high adoption of efficient and modular infrastructure solutions. The market has a strong presence of vendors across all three categories, such as electrical infrastructure, mechanical infrastructure, and general construction.

Prominent IT Infrastructure Vendors
HPE (H3C)
Cisco
Dell Technologies
Hitachi Vantara
Huawei
IBM
Inspur Group
Lenovo
Quanta Cloud Technology (Quanta Computer)

Prominent Construction Contractors
Arup Group
Aurecon Construction
AWP Architects
BYME Engineering
Chung Hing Engineers Group
DSCO Group
Faithful+Gould
Gammon Construction
ISG
Studio One Design Limited
NTT FACILITIES

Prominent Support Infrastructure Providers
ABB
Vertiv
Caterpillar
Cummins
Delta Group
Eaton
Schneider Electric
Fuji Electric
Hitec Power Protection
Mitsubishi Electric
Legrand Group
Rittal
MTU On Site Energy
AIRSYS
Kstar New Energy

Prominent Data Center Investors
Apple
Chayora Holdings
China Unicom
ChinData Group
Equinix
GDS Holdings
Global Switch
PT Telekomunikasi Group
Shanghai Athub
Shanghai Qnet Network Technology
SUNeVison
Tencent Holdings
Tenglong Holdings Group (Tamron)

KEY QUESTIONS ANSWERED
1. What is the China and Hong Kong data center market size and growth rate during the forecast period?
2. What are the factors impacting the growth of China and Hong Kong data center market share?
3. What are the drivers, trends, and restraints in the China and Hong Kong data center market?
4. Who are the leading infrastructure vendors, construction contractors and data center investors in the China and Hong Kong data center market?
5. What is the impact of the COVID-19 pandemic on the China and Hong Kong data center market?


1 Research Methodology
2 Research Objectives
3 Research Process
4 Scope & Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of The Study
4.4 Market Segments
4.4.1 Market Segmentation by Infrastructure
4.4.2 Market Segmentation by IT Infrastructure
4.4.3 Market Segmentation by Electrical Infrastructure
4.4.4 Market Segmentation by Mechanical Infrastructure
4.4.5 Market Segmentation by Cooling Systems
4.4.6 Market Segmentation by General Construction
4.4.7 Market Segmentation by Tier Standards
4.4.8 Market Segmentation by Geography
5 Report Assumptions & Caveats
5.1 Key Caveats
5.2 Currency Conversion
5.3 Market Derivation
6 Market at a Glance
7 Introduction
7.1 Internet Penetration
7.1.1 Impact Of Internet Penetration In China & Hong Kong
7.2 Submarine Cables
7.2.1 Impact Of Submarine Cables On China & Hong Kong Data Center Market
8 Covid-19 Impact
8.1 Impact Of Covid-19 On Data Center Market
8.1.1 Construction Perspective
8.1.2 Infrastructure Production & Procurement
8.1.3 Data Center Operations
8.2 Impact Of Covid-19 On China & Hong Kong Data Center Market
9 Market Growth Enablers
9.1 Digitalization Drives Data Center Investments
9.2 Growing Demand For Colocation & Hyperscale Data Centers
9.3 Increased Adoption Of Cloud Services
9.4 Big Data & Iot Spending To Drive Data Center Investment
10 Market Restraints
10.1 Ease Of Doing Business
10.2 Scarcity Of Land In Hong Kong Impacts Data Center Growth
10.3 Air Pollution Restricts Free Cooling
11 Market Opportunities & Trends
11.1 Increase In Renewable Energy Procurement
11.2 Rising Investment in AI, Blockchain Technology & Quantum Computing
11.3 Implementation Of 5G & Smart City Initiatives To Drive Edge Data Centers
12 Market Landscape
12.1 Market Overview
12.2 Market Size & Forecast
12.3 Five Forces Analysis
12.3.1 Threat Of New Entrants
12.3.2 Bargaining Power Of Suppliers
12.3.3 Bargaining Power Of Buyers
12.3.4 Threat Of Substitutes
12.3.5 Competitive Rivalry
13 Infrastructure
13.1 Market Snapshot & Growth Engine
13.2 Market Overview
13.3 IT Infrastructure
13.3.1 Market Overview
13.3.2 Market Size & Forecast
13.4 Electrical Infrastructure
13.4.1 Market Overview
13.4.2 Market Size & Forecast
13.5 Mechanical Infrastructure
13.5.1 Market Overview
13.5.2 Market Size & Forecast
13.6 General Construction
13.6.1 Market Overview
13.6.2 Market Size & Forecast
14 IT Infrastructure
14.1 Market Snapshot & Growth Engine
14.3 Server
14.3.1 Market Overview
14.3.2 Market Size & Forecast
14.4 Storage
14.4.1 Market Overview
14.4.2 Market Size & Forecast
14.5 Network
14.5.1 Market Overview
14.5.2 Market Size & Forecast
15 Electrical Infrastructure
15.1 Market Snapshot & Growth Engine
15.2 Ups Systems
15.2.1 Market Overview
15.2.2 Market Size & Forecast
15.3 Generators
15.3.1 Market Overview
15.3.2 Market Size & Forecast
15.4 Transfer Switches & Switchgear
15.4.1 Market Overview
15.4.2 Market Size & Forecast
15.5 PDU
15.5.1 Market Overview
15.5.2 Market Size & Forecast
15.6 Other Electrical Infrastructure
15.6.1 Market Overview
15.6.2 Market Size & Forecast
16 Mechanical Infrastructure
16.1 Market Snapshot & Growth Engine
16.2 Cooling Systems
16.2.1 Market Overview
16.2.2 Market Size & Forecast
16.3 Racks
16.3.1 Market Overview
16.3.2 Market Size & Forecast
16.4 Other Mechanical Infrastructure
16.4.1 Market Overview
16.4.2 Market Size & Forecast
17 Cooling Systems
17.1 Market Snapshot & Growth Engine
17.2 CRAC & CRAH Units
17.2.1 Market Overview
17.2.2 Market Size & Forecast
17.3 Chiller Units
17.3.1 Market Overview
17.3.2 Market Size & Forecast
17.4 Cooling Towers, Dry Coolers, & Condensers
17.4.1 Market Overview
17.4.2 Market Size & Forecast
17.5 Economizers & Evaporative Coolers
17.5.1 Market Overview
17.5.2 Market Size & Forecast
17.6 Other Cooling Units
17.6.1 Market Overview
17.6.2 Market Size & Forecast
18 Cooling Techniques
18.1 Market Snapshot & Growth Engine
18.2 Air-Based Cooling Techniques
18.2.1 Market Overview
18.2.2 Market Size & Forecast
18.3 Liquid-Based Cooling Techniques
18.3.1 Market Overview
18.3.2 Market Size & Forecast
19 General Construction
19.1 Market Snapshot & Growth Engine
19.2 Building Development
19.2.1 Market Overview
19.2.2 Market Size & Forecast
19.3 Installation & Commissioning Services
19.3.1 Market Overview
19.3.2 Market Size & Forecast
19.4 Building Design
19.4.1 Market Overview
19.4.2 Market Size & Forecast
19.5 Physical Security
19.5.1 Market Overview
19.5.2 Market Size & Forecast
19.6 DCIM/BMS
19.6.1 Market Overview
19.6.2 Market Size & Forecast
20 Tier Standards
20.1 Market Snapshot & Growth Engine
20.2 Overview Of Tier Standards
20.3 Tier I & Tier II
20.3.1 Market Overview
20.3.2 Market Size & Forecast
20.4 Tier III
20.4.1 Market Overview
20.4.2 Market Size & Forecast
20.5 Tier IV
20.5.1 Market Overview
20.5.2 Market Size & Forecast
21 Geography
21.1 Geography Snapshot & Growth Engine
21.2 Geography Snapshot & Growth Engine
21.3 Geography Snapshot & Growth Engine
22 China
22.1 Market Snapshot & Growth Engine
22.2 Market Overview
22.3 Investment: Market Size & Forecast
22.4 Area: Market Size & Forecast
22.5 Power Capacity: Market Size & Forecast
22.6 Market By Infrastructure
22.6.1 Electrical Infrastructure: Market Size & Forecast
22.6.2 Mechanical Infrastructure: Market Size & Forecast
22.6.3 General Construction: Market Size & Forecast
23 Hong Kong
23.1 Market Snapshot & Growth Engine
23.2 Market Overview
23.3 Investment: Market Size & Forecast
23.4 Area: Market Size & Forecast
23.5 Power Capacity: Market Size & Forecast
23.6 Market By Infrastructure
23.6.1 Electrical Infrastructure: Market Size & Forecast
23.6.2 Mechanical Infrastructure: Market Size & Forecast
23.6.3 General Construction: Market Size & Forecast
24 Key Market Participants
24.1 Competitive Scenario
24.2 Infrastructure Providers
24.3 Construction Contractors
24.4 Data Center Investors
25 Prominent IT Infrastructure Providers
25.1 Hewlett Packard Enterprise (HPE)
25.1.1 Business Overview
25.1.2 Product Offerings
25.1.3 Key News
25.2 Cisco
25.2.1 Business Overview
25.2.2 Product Offerings
25.2.3 Key News
25.3 Dell Technologies
25.3.1 Business Overview
25.3.2 Product Offerings
25.3.3 Key News
25.4 Hitachi Vantara
25.4.1 Business Overview
25.4.2 Product Offerings
25.5 Huawei
25.5.1 Business Overview
25.5.2 Product Offerings
25.5.3 Key News
25.6 IBM
25.6.1 Business Overview
25.6.2 Product Offerings
25.6.3 Key News
25.7 Inspur
25.7.1 Business Overview
25.7.2 Product Offerings
25.7.3 Key News
25.8 Lenovo
25.8.1 Business Overview
25.8.2 Product Offerings
25.9 Quanta Cloud Technology (Quanta Computer)
25.9.1 Business Overview
25.9.2 Product Offerings
26 Prominent Construction Contractors
26.1 Arup
26.1.1 Business Overview
26.1.2 Service Offerings
26.2 Aurecon
26.2.1 Business Overview
26.2.2 Service Offerings
26.3 AWP Architects
26.3.1 Business Overview
26.3.2 Service Offerings
26.4 Byme Engineering Limited
26.4.1 Business Overview
26.4.2 Service Offerings
26.5 Chung Hing Engineers Group
26.5.1 Business Overview
26.5.2 Service Offerings
26.6 Dsco Group
26.6.1 Business Overview
26.6.2 Service Offerings
26.7 Faithful+Gould
26.7.1 Business Overview
26.7.2 Service Offerings
26.8 Gammon Construction
26.8.1 Business Overview
26.8.2 Service Offerings
26.9 ISG
26.9.1 Business Overview
26.9.2 Service Offerings
26.10 Studio One Design Limited
26.10.1 Business Overview
26.10.2 Service Offerings
26.11 NTT Facilities Group
26.11.1 Business Overview
26.11.2 Service Offerings
27 Prominent Support Infrastructure Providers
27.1 ABB
27.1.1 Business Overview
27.1.2 Product Offerings
27.2 Vertiv
27.2.1 Business Overview
27.2.2 Product Offerings
27.3 Caterpillar
27.3.1 Business Overview
27.3.2 Product Offerings
27.4 Cummins
27.4.1 Business Overview
27.4.2 Product Offerings
27.5 Delta Group
27.5.1 Business Overview
27.5.2 Product Offerings
27.6 Eaton
27.6.1 Business Overview
27.6.2 Product Offerings
27.7 Schneider Electric
27.7.1 Business Overview
27.7.2 Product Offerings
27.8 Fuji Electric
27.8.1 Business Overview
27.8.2 Product Offerings
27.9 Hitec Power Protection
27.9.1 Business Overview
27.9.2 Product Offerings
27.10 Mitsubishi Electric
27.10.1 Business Overview
27.10.2 Product Offerings
27.11 Legrand Group
27.11.1 Business Overview
27.11.2 Product Offerings
27.12 Rittal
27.12.1 Business Overview
27.12.2 Product Offerings
27.13 Mtu On Site Energy (Rolls-Royce Power Systems Ag)
27.13.1 Business Overview
27.13.2 Product Offerings
27.14 Airsys
27.14.1 Business Overview
27.14.2 Product Offerings
27.15 Kstar
27.15.1 Business Overview
27.15.2 Product Offerings
28 Prominent Data Center Investors
28.1 Apple
28.1.1 Business Overview
28.1.2 Service Offerings
28.2 Aws (Amazon Web Services)
28.2.1 Business Overview
28.2.2 Service Offerings
28.3 China Unicom
28.3.1 Business Overview
28.3.2 Service Offerings
28.3.3 Key News
28.4 Chayora Holdings Limited
28.4.1 Business Overview
28.4.2 Service Offerings
28.4.3 Key News
28.5 Chindata
28.5.1 Business Overview
28.5.2 Service Offerings
28.6 Equinix
28.6.1 Business overview
28.6.2 Service Offerings
28.6.3 Key News
28.7 GDS Holdings
28.7.1 Business Overview
28.7.2 Service Offerings
28.7.3 Key News
28.8 Global Switch
28.8.1 Business Overview
28.8.2 Service Offerings
28.8.3 Key News
28.9 Pt Telekomunikasi Indonesia
28.9.1 Business Overview
28.9.2 Service Offerings
28.10 Sunevision (Iadvantage)
28.10.1 Business Overview
28.10.2 Service Offerings
28.11 Shanghai Athub
28.11.1 Business Overview
28.11.2 Service Offerings
28.12 Shanghai Qnet Networking Technology
28.12.1 Business Overview
28.12.2 Service Offerings
28.13 Tencent Holdings Limited
28.13.1 Business Overview
28.13.2 Service Offerings
28.14 Tenglong Holdings Group (Tamron)
28.14.1 Business Overview
28.14.2 Service Offerings
28.14.3 Key News
29 Report Summary
29.1 Key Takeaways
30 Quantitative Summary
30.1.1 Overall market
30.1.2 Market by Infrastructure
30.1.3 Market by IT Infrastructure
30.1.4 Market by Electrical Infrastructure
30.1.5 Market by Mechanical Infrastructure
30.1.6 Market by Cooling Systems
30.1.7 Market by Cooling Technique
30.1.8 Market by General Construction
30.1.9 Market by Tier Standards
30.2 Geographical Segmentation
30.2.1 Investment by Countries
30.2.2 Investment by Area
30.2.3 Investment by Power Capacity
30.3 China
30.3.1 Overall Market
30.3.2 Market By Infrastructure
30.4 Hong Kong
30.4.1 Overall Market
30.4.2 Market By Infrastructure
31 Appendix
31.1 Abbreviations

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