Internet Data Center Market in China and Hong Kong - Industry Outlook and Forecast 2021-2026

Internet Data Center Market in China and Hong Kong - Industry Outlook and Forecast 2021-2026

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 investment is expected to grow at a CAGR of approx. 4% during the period 2020–2026.

The emergence of the 5G network has been a significant boost to the China & Hong Kong edge data center market. China and Hong Kong governments have been actively supporting the improvement of networking infrastructure in their countries. The implementation of 5G has boosted the digital economy, leading to the increased demand for high bandwidth networking infrastructure. Chinese telecom operators in the region are incredibly active in the implementation of 5G infrastructure. Operators such as China Telecom, China Unicom, and China Mobile are the major players in the 5G landscape. Over 700,000 5G sites were built by these three operators in 2020 and are likely to add 600,000 base stations in 2021 for the implementation of 5G network. China Unicom has deployed edge data centers in the region. Turbidite, an edge data center platform, launched in March 2021, develops international-standard edge data centers across APAC countries, including China and Hong Kong. The company is in the process of acquiring and developing carrier-neutral edge data centers that will support enterprises and hyperscale data center developers to establish their presence in the APAC region. It is expected that the number of connected devices will triple by the end of the forecast period, and smart city growth will involve data centers nearer to customer locations. These deployments will continue to drive innovations in the data center power space, with increased modular infrastructure offerings.

The following factors are likely to contribute to the growth of the China and Hong Kong data center market during the forecast period:

  • Implementation of 5G driving Edge Data Centers
  • Smart Cities fueling Data Center Demand
  • Renewable Energy reducing Power Cost
  • The rise in AI, Blockchain & Quantum Computing Investment
The study considers the present scenario of the China and Hong Kong data center market and its market dynamics for the period 2020−2026. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects 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, cooling systems, cooling technique, general construction, tier standards, geography. The China & Hong Kong IT Infrastructure market expects to reach over USD 28 billion in 2026, growing at a CAGR of over 3%. Servers are the major revenue contributor to the market as the growth in data generation is fueling demand for fast processing efficient servers. Servers comprising AI-enabled features such as data analytics, development of AI-enabled applications, flexible deployment of data expect to increase the demand during the forecast period.

The electrical infrastructure market in China & Hong Kong is likely to grow at a CAGR of approx. 4% during 2020–2026. In China & Hong Kong, data centers are designed to be of Tier III and Tier IV standards, with the high deployment of 2N redundant UPS systems, coupled with generators and other infrastructure adopting N+N redundancy. The adoption of Diesel Rotary Uninterruptible Power Supply (DRUPS) systems is growing in the Hong Kong market. DRUPS solutions are likely to witness high demand among data centers, with multiple modules having a total capacity of up to 2 MW and N+N or 2N redundant configurations. The adoption of intelligent PDU solutions such as metered and monitored PDU dominates in terms of investments. The adoption of modular infrastructure solutions in prefabricated data center deployment is increasing, continuing to grow and contributing to the market investment by the end of the forecast period.

In China, most facilities are colocation and adopt a combination of air and water-based cooling techniques to cool facilities; however, a few are built to support free cooling techniques. In Beijing, a majority of data centers are colocation based and adopt a combination of air and water-based cooling techniques to cool down the facility. Most facilities have installed chilled water-cooling systems. The increased use of rack scale converged infrastructure systems in data centers will impact the rack market, affecting rack adoption. In 2020, the China and Hong Kong data center market witnessed a rack capacity of over 1,00,000. Vendors are constantly innovating rack designs to provide airflow perforation (80%), enhance cabling channels, and support more weight capacity.

Several data centers use CRAC and CRAH units to supply cold air and exhaust hot air from the data hall. With data centers now built to handle over 10 MW of IT load, the use of multiple CRAC and CRAH units split across data halls is growing. The market will continue to grow among data centers that use DX or chilled-water cooling solutions. The adoption of chiller units expects to be higher in the market. All high-density data centers in the region depend on chilled water to cool their facilities. Hence, the use of free cooling systems is partially viable in these locations. Data centers in China & Hong Kong are developed to derive benefits from free cooling techniques. The use of evaporative coolers is also gaining traction in these countries, along with the adoption of evaporative cooling systems.

China is leading the greenfield construction of data centers. Hyperscale developments expect to increase the demand for engineering services in China. Most data centers in Beijing have 24X7 onsite support, including security, maintenance, smart hands teams. In addition, facilities are equipped with disaster recovery systems. Due to the limited availability of land, brownfield construction has witnessed growth in Hong Kong, and this trend is likely to continue during the forecast period. Most facilities in China prefer at least four layers of safety, with few engaged in implementing five-layer ones due to the increasing demand for colocation services.

Several mega data center projects are designed to be of Tier III and Tier IV standards in China. Tier III and Tier IV facilities dominate the China and Hong Kong data center market share, expecting to account for USD 4 billion and USD 2 billion, respectively, by 2026. Around 30 data centers in China & Hong Kong fall under the Tier III category. Equinix, GDS Services Ltd, Global Switch, and China Unicom are major vendors developing Tier III standards facilities. Several facilities in China have received Tier IV Certification for design from the Uptime Institute. These facilities generate more revenue for the market, with focused investment on highly efficient cooling systems. Tier IV facilities involve the adoption of 2N+1 cooling units.

By IT Infrastructure
  • Servers
  • Storage
  • Network
By Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches and Switchgears
  • PDUs
  • Other Electrical Infrastructures
By Mechanical Infrastructure
  • Cooling Systems
CRAC & CRAH Units

Chiller Units

Cooling Towers, Dry Coolers, & Condensers

Economizers and Evaporative Coolers, and Other Units

Racks

Other Mechanical Infrastructure
  • Other Cooling Units
  • Racks
  • Others Mechanical Infrastructure
By Cooling Technique
  • Air-based Cooling Technique
  • Liquid-based Cooling Technique
By General Construction
  • Core and Shell Development
  • Installation and Commissioning Services
  • Engineering and Building Designs
  • Physical Security
  • DCIM/BMS
By Tier Standards
  • Tier I &II
  • Tier III
  • Tier IV
INSIGHTS BY GEOGRAPHY

China accounts for the highest revenue share, expecting to constitute over USD 5.6 billion by 2026. The data center market in China is growing YOY aided by the strong growth in internet connectivity across the country and an increasing number of submarine cable deployments connecting the country. Data center demand in China will exceed supply due to the rising demand for cloud-based services, big data analytics, and IoT. The high demand for data centers is likely to boost the development of colocation facilities and prompt regional cloud service providers to establish multiple availability zones in China. The installation of 5G in Beijing is driving the construction of edge and colocation data centers. The government has planned to develop a pilot trade zone for big data exchange and digital trade in Beijing. The increased focus on digital industrialization, industry digitization, data valuation, digital governance, and digital trade development is likely to influence China's market growth.

By Geography
  • China
Beijing

Shanghai

Other Cities
  • Hong Kong
INSIGHTS BY VENDORS

China & Hong Kong is one of the most developed data center markets. The data center market in China and Hong Kong is still witnessing growth in terms of investment from global and local data center operators. Due to the COVID-19 pandemic, the data generation significantly increased this derived investment in data centers. Vendors are offering innovative solutions for data centers to improve efficiency of data centers. The market is likely to witness the entry of new players that provide DCIM solutions, installation & commissioning services, and physical security services. The success of new entrants mainly depends on their market expertise and understanding of local regulations. The Princeton Digital Group, GDS Services, and BDx invested in the region in 2020. These providers are either building data centers or acquiring existing facilities to create a foundation for expansion in the future years.

Key Data Center Critical (IT) Infrastructure Providers
  • Hewlett Packard Enterprise (HPE)
  • Cisco Systems
  • Dell Technologies
  • Hitachi Vantara Corporation
  • Huawei Technologies
  • IBM
  • Inspur
  • Lenovo
  • Quanta Cloud Technology (Quanta Computer)
Key Data Center Support Infrastructure Providers
  • ABB
  • Vertiv
  • Caterpillar
  • Cummins
  • Delta Electronics
  • Eaton
  • Fuji Electric
  • Schneider Electric
  • HITEC Power Protection
  • Mitsubishi Electric Corporation
  • Legrand
  • Rittal
  • Rolls-Royce Power Systems
  • AIRSYS
  • Shenzhen Kstar Science and Technology
Key Data Center Investors
  • Apple
  • AirTrunk Operating
  • Amazon Web Services (AWS)
  • 21Vianet
  • BDx
  • Chayora
  • China Unicom
  • Chindata
  • CITIC Telcom International Holdings
  • Equinix
  • GDS Services
  • Global Switch
  • OneAsia Network
  • Telekomunikasi Indonesia (Persero)
  • PCCW Global Solutions
  • Princeton Digital Group
  • SUNeVision (iAdvantage)
  • Shanghai AtHub
  • Shanghai Qnet Networking Technology
  • Tencent Holdings
  • Tenglong Holdings Group (Tamron)
Key Construction Constructors
  • Arup Group
  • Aurecom Group
  • AWP Architects
  • BYME Engineering (HK)
  • Chung Hing Engineers Group
  • DSCO Group
  • Faithful+Gould
  • Gammon Construction
  • ISG
  • Studio One Design
  • NTT Global Data Centers
KEY QUESTIONS ANSWERED

1. How big is the China and Hong Kong Data Center market size?

2. What is the growth of Tier III data centers in China and Hong Kong?

3. What is the growth rate of the China and Hong Kong Data Center Market?

4. What are the new investment opportunities in the data center market?

5. Who are the key players in 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 Cooling Techniques
4.4.7 Market Segmentation by General Construction
4.4.8 Market Segmentation by Tier Standards
4.4.9 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 Overview
8 Market Opportunities & Trends
8.1 5G Implementation To Drive Edge Data Centers
8.2 Smart Cities Fuel Data Center Demand
8.3 Renewable Energy To Reduce Power Cost
8.4 Rising Investment In AI, Blockchain & Quantum Computing
9 Market Growth Enablers
9.1 Data Center Investments Continue To Rise
9.2 Impact Of COVID-19 On Data Center Investments
9.3 Growing Demand For Hyperscale Data Centers
9.4 Increased Adoption Of Cloud Services
9.5 Big Data & IoT Spending To Drive Data Center Investment
10 Market Restraints
10.1 Regulatory Hurdles For Doing Business
10.2 Land Scarcity In Hong Kong Impacts Data Center Growth
10.3 Air Pollution Restricts Free Cooling
11 Market Landscape
11.1 Market Overview
11.2 Investment: Market Size & Forecast
11.3 Area: Market Size & Forecast
11.4 Power Capacity: Market Size & Forecast
11.5 Five Forces Analysis
11.5.1 Threat of New Entrants
11.5.2 Bargaining Power of Suppliers
11.5.3 Bargaining Power of Buyers
11.5.4 Threat of Substitutes
11.5.5 Competitive Rivalry
12 Infrastructure
12.1 Market Snapshot & Growth Engine
12.2 IT Infrastructure
12.2.1 Market Overview
12.2.2 Market Size & Forecast
12.3 Electrical Infrastructure
12.3.1 Market Overview
12.3.2 Market Size & Forecast
12.4 Mechanical Infrastructure
12.4.1 Market Overview
12.4.2 Market Size & Forecast
12.5 General Construction
12.5.1 Market Overview
12.5.2 Market Size & Forecast
13 IT Infrastructure
13.1 Market Snapshot & Growth Engine
13.2 Server Infrastructure
13.2.1 Market Overview
13.3 Storage Infrastructure
13.3.1 Market Overview
13.3.2 Market Size & Forecast
13.4 Network Infrastructure
13.4.1 Market Overview
13.4.2 Market Size & Forecast
14 Electrical Infrastructure
14.1 Market Snapshot & Growth Engine
14.2 UPS Systems
14.2.1 Market Overview
14.2.2 Market Size & Forecast
14.3 Generators
14.3.1 Market Overview
14.3.2 Market Size & Forecast
14.4 Transfer Switches & Switchgear
14.4.1 Market Overview
14.4.2 Market Size & Forecast
14.5 PDU
14.5.1 Market Overview
14.5.2 Market Size & Forecast
14.6 Other Electrical Infrastructure
14.6.1 Market Overview
14.6.2 Market Size & Forecast
15 Mechanical Infrastructure
15.1 Market Snapshot & Growth Engine
15.2 Cooling Systems
15.2.1 Market Overview
15.2.2 Market Size & Forecast
15.3 Racks
15.3.1 Market Overview
15.3.2 Market Size & Forecast
15.4 Other Mechanical Infrastructure
15.4.1 Market Overview
15.4.2 Market Size & Forecast
16 Cooling Systems
16.1 Market Snapshot & Growth Engine
16.2 CRAC & CRAH Units
16.2.1 Market Overview
16.2.2 Market Size & Forecast
16.3 Chiller Units
16.3.1 Market Overview
16.3.2 Market Size & Forecast
16.4 Cooling Towers, Dry Coolers & Condensers
16.4.1 Market Overview
16.4.2 Market Size & Forecast
16.5 Economizers & Evaporative Coolers
16.5.1 Market Overview
16.5.2 Market Size & Forecast
16.6 Other Cooling Units
16.6.1 Market Overview
16.6.2 Market Size & Forecast
17 Cooling Technique
17.1 Market Snapshot & Growth Engine
17.2 Air-Based Cooling Techniques
17.2.1 Market Overview
17.2.2 Market Size & Forecast
17.3 Liquid-Based Cooling Techniques
17.3.1 Market Overview
17.3.2 Market Size & Forecast
18 General Construction
18.1 Market Snapshot & Growth Engine
18.2 Core & Shell Development
18.2.1 Market Overview
18.2.2 Market Size & Forecast
18.3 Installation & Commissioning Services
18.3.1 Market Overview
18.3.2 Market Size & Forecast
18.4 Building & Engineering Design
18.4.1 Market Overview
18.4.2 Market Overview
18.5 Physical Security
18.5.1 Market Overview
18.5.2 Market Size & Forecast
18.6 DCIM/BMS Solutions
18.6.1 Market Overview
18.6.2 Market Size & Forecast
19 Tier Standards
19.1 Market Snapshot & Growth Engine
19.2 Overview of Tier Standards
19.3 Tier I & Tier II
19.3.1 Market Overview
19.3.2 Market Size & Forecast
19.4 Tier III
19.4.1 Market Overview
19.4.2 Market Size & Forecast
19.5 Tier IV
19.5.1 Market Overview
19.5.2 Market Size & Forecast
20 Geography
20.1 Market Snapshot & Growth Engine
20.2 Area: Snapshot & Growth Engine
20.3 Power Capacity: Snapshot & Growth Engine
21 China
21.1 Market Snapshot & Growth Engine
21.2 Market Overview
21.2.1 Investment: Market Size & Forecast
21.2.2 Area: Market Size & Forecast
21.2.3 Power Capacity: Market Size & Forecast
21.2.4 Support Infrastructure: Market Size & Forecast
21.3 Beijing
21.3.1 Market Snapshot & Growth Engine
21.3.2 Market Overview
21.3.3 Investment: Size & Forecast
21.3.4 Area: Market Size & Forecast
21.3.5 Power Capacity: Market Size & Forecast
21.3.6 Support Infrastructure: Market Size & Forecast
21.4 Shanghai
21.4.1 Market Snapshot & Growth Engine
21.4.2 Market Overview
21.4.3 Investment: Size & Forecast
21.4.4 Area: Market Size & Forecast
21.4.5 Power Capacity: Market Size & Forecast
21.4.6 Support Infrastructure: Market Size & Forecast
21.5 Other Chinese Cities
21.5.1 Market Snapshot & Growth Engine
21.5.2 Market Overview
21.5.3 Investment: Size & Forecast
21.5.4 Area: Market Size & Forecast
21.5.5 Power Capacity: Market Size & Forecast
21.5.6 Support Infrastructure: Market Size & Forecast
22 Hong Kong
22.1 Market Snapshot & Growth Engine
22.1.1 Market Overview
22.1.2 Investment: Size & Forecast
22.1.3 Area: Market Size & Forecast
22.1.4 Power Capacity: Market Size & Forecast
22.1.5 Support Infrastructure: Market Size & Forecast
23 Competitive Landscape
23.1 Competition Overview
23.1.1 Infrastructure Providers
23.1.2 Construction Contractors
23.1.3 Data Center Investors
24 Prominent It Infrastructure Vendors
24.1 Hewlett Packard Enterprise
24.1.1 Business Overview
24.1.2 Product Offerings
24.2 CISCO Systems
24.2.1 Business Overview
24.2.2 Product Offerings
24.3 Dell Technologies
24.3.1 Business Overview
24.3.2 Product Offerings
24.4 Hitachi Vantara Corporation
24.4.1 Business Overview
24.4.2 Product Offerings
24.5 Huawei Technologies
24.5.1 Business Overview
24.5.2 Product Offerings
24.6 IBM
24.6.1 Business Overview
24.6.2 Product Offerings
24.7 Inspur
24.7.1 Business Overview
24.7.2 Product Offerings
24.8 Lenovo
24.8.1 Business Overview
24.8.2 Product Offerings
24.9 Quanta Cloud Technology (Quanta Computer)
24.9.1 Business Overview
24.9.2 Product Offerings
25 Prominent Support Infrastructure Providers
25.1 ABB
25.1.1 Business Overview
25.1.2 Product Offerings
25.2 Vertiv
25.2.1 Business Overview
25.2.2 Product Offerings
25.3 Caterpillar
25.3.1 Business Overview
25.3.2 Product Offerings
25.4 Cummins
25.4.1 Business Overview
25.4.2 Product Offerings
25.5 Delta Power Solutions
25.5.1 Business Overview
25.5.2 Product Offerings
25.6 Eaton
25.6.1 Business Overview
25.6.2 Product Offerings
25.7 Fuji Electric
25.7.1 Business Overview
25.7.2 Product Offerings
25.8 Schneider Electric
25.8.1 Business Overview
25.8.2 Product Offerings
25.9 Hitec Power Protection
25.9.1 Business Overview
25.9.2 Product Offerings
25.9.3 Key News
25.10 Mitsubishi Electric Corporation
25.10.1 Business Overview
25.10.2 Product Offerings
25.10.3 Key News
25.11 Legrand
25.11.1 Business Overview
25.11.2 Product Offerings
25.12 Rittal
25.12.1 Business Overview
25.12.2 Product Offerings
25.13 Rolls-Royce Power Systems
25.13.1 Business Overview
25.13.2 Product Offerings
25.14 Airsys Group
25.14.1 Business Overview
25.14.2 Product Offerings
25.15 Shenzhen Kstar Science And Technology
25.15.1 Business Overview
25.15.2 Product Offerings
26 Prominent Construction Contractors
26.1 Arup
26.1.1 Business Overview
26.1.2 Service Offerings
26.2 Aurecom Group
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 (HK)
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
26.10.1 Business Overview
26.10.2 Service Offerings
26.11 NTT Global Data Centers
26.11.1 Business Overview
26.11.2 Service Offerings
27 Prominent Data Center Investors
27.1 Apple
27.1.1 Business Overview
27.1.2 Service Offerings
27.2 Airtrunk Operating
27.2.1 Business Overview
27.2.2 Service Offerings
27.2.3 Key News
27.3 Amazon Web Services (AWS)
27.3.1 Business Overview
27.3.2 Service Offerings
27.4 21VIANET
27.4.1 Business Overview
27.4.2 Service Offerings
27.5 BDX
27.5.1 Business Overview
27.5.2 Service Offerings
27.5.3 Key News
27.6 Chayora
27.6.1 Business Overview
27.6.2 Service Offerings
27.7 China Unicom
27.7.1 Business Overview
27.7.2 Service Offerings
27.8 Chindata
27.8.1 Business Overview
27.8.2 Service Offerings
27.8.3 Key News
27.9 Citic Telcom International Holdings
27.9.1 Business Overview
27.9.2 Service Offerings
27.10 Equinix
27.10.1 Business Overview
27.10.2 Service Offerings
27.11 GDS Services
27.11.1 Business Overview
27.11.2 Service Offerings
27.11.3 Key News
27.12 Global Switch
27.12.1 Business Overview
27.12.2 Service Offerings
27.13 Oneasia Network
27.13.1 Business Overview
27.13.2 Product Offerings
27.14 Telekomunikasi Indonesia (PERSERO)
27.14.1 Business Overview
27.14.2 Service Offerings
27.15 PCCW Global Solutions
27.15.1 Business Overview
27.15.2 Service Offerings
27.16 Princeton Digital Group
27.16.1 Business Overview
27.16.2 Service Offerings
27.17 Sunevision (IADVANTAGE)
27.17.1 Business Overview
27.17.2 Service Offerings
27.18 Shanghai Atrium (Athub)
27.18.1 Business Overview
27.18.2 Service Offerings
27.19 Shanghai Qnet Networking Technology
27.19.1 Business Overview
27.19.2 Service Offerings
27.20 Tencent Holdings
27.20.1 Business Overview
27.20.2 Service Offerings
27.21 Tenglong Holdings Group (TAMRON)
27.21.1 Business Overview
27.21.2 Service Offerings
28 Report Summary
28.1 Key Takeaways
29 Quantitative Summary
29.1 China & Hong Kong Data Center Market
29.1.1 Investment: Market Size & Forecast
29.1.2 Overall Market (Including IT Infrastructure)
29.1.3 Infrastructure: Market Size & Forecast
29.2 Market Segmentation
29.2.1 IT Infrastructure: Market Size & Forecast
29.2.2 Electrical Infrastructure: Market Size & Forecast
29.2.3 Mechanical Infrastructure: Market Size & Forecast
29.2.4 Cooling Systems: Market Size & Forecast
29.2.5 Cooling Techniques: Market Size & Forecast
29.2.6 General Construction: Market Size & Forecast
29.2.7 Tier Standards: Market Size & Forecast
29.3 Geographical Segmentation
29.3.1 Investment: Market Size & Forecast
29.3.2 Area: Market Size & Forecast
29.3.3 Power Capacity: Market Size & Forecast
29.4 China
29.4.1 Investment: Market Size & Forecast
29.4.2 Infrastructure: Market Size & Forecast
29.5 Beijing
29.5.1 Investment: Market Size & Forecast
29.5.2 Infrastructure: Market Size & Forecast
29.6 Shanghai
29.6.1 Investment: Market Size & Forecast
29.6.2 Infrastructure: Market Size & Forecast
29.7 Other Chinese Cities
29.7.1 Investment: Market Size & Forecast
29.7.2 Infrastructure: Market Size & Forecast
29.8 Hong Kong
29.8.1 Investment: Market Size & Forecast
29.8.2 Infrastructure: Market Size & Forecast
30 Appendix
30.1 Abbreviations

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