Arizton published a report about China and the Hong Kong data center market. The report shows that the server market in China and Hong Kong will witness significant growth in the next few years due to investments from major cloud service providers. It is estimated that over $25 billion will be invested in China & Hong Kong data center space during 2020-2025. The major cloud service providers operators investing in the region are Apple, Alibaba, Tencent, Baidu, and China Telecom.
While mega data center projects in China are designed to be of Tier III and Tier IV standards, it is expected that new facilities will support a capacity of 20 kW during the forecast period. The finding also shows that in China, a majority of data centers offer colocation services to adopt air as well as water-based cooling techniques.
Important findings of the report
- In 2019, China and Hong Kong witnessed investments in over 35 data centers, where China contributed to around 80% of the overall data center investments.
- Cloud, big data, IoT, Artificial Intelligence, and quantum computing are driving the market growth, leading to investments in multiple hyperscale data center campuses across China & Hong Kong.
- GDS Services, ChinData, Shanghai Athub, 21Vianet, and Tenglong Holdings are among the leading investors in new data centers across China.
- With the shortage of land hinders the construction of greenfield data center facilities, brownfield development to contribute to market growth.
- Over 600 MW of power capacity will be added through data center developments in Hong Kong between 2020-2025.
- New entrants namely, Chayora, Princeton Digital Group, AirTrunk, and BDx China are investing in hyperscale facilities.
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