China and Hong Kong data center market size will reach revenue of close to $27 billion by 2025, growing at a CAGR close to 2% between 2020-2025, according to the “Data Center Market in China and Hong Kong – Industry Outlook and Forecast 2020-2025” report. The report also shows that the data center market in China & Hong Kong have been affected by the increasing investment in artificial intelligence, blockchain, and quantum computing.
The creation of Blockchain Network (BCN) across 100 cities
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.
The Chinese 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 server market will rise in China and Hong Kong
The server market in China and Hong Kong is expected to see significant growth in the next few years due to investments from major cloud service providers. like Apple, Alibaba, Tencent, Baidu, and China Telecom.
Mega data center projects in China have Tier III and Tier IV standards, with the increased deployment of 2N redundant UPS systems. Although most facilities support rack power density of 510 kW, new facilities will support a capacity of 20 kW between 2020-2025.
In China, a majority of data centers offer colocation services to adopt air as well as water-based cooling techniques. Some facilities are built to support free cooling techniques. Hyperscale developments are to increase the demand for engineering services in China.
Space shortage is effecting high brownfield deployments in Hong Kong. Innovations in connected security products boost market growth. Data center operators prefer the analytics of video surveillance recording. In the coming years, the market will see the increased use of robot monitoring systems in the facility, with sensor and video surveillance.
According to the report, 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.
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