The data center market in China and Hong Kong recorded investments of USD 30.68 billion in 2021 and will see investments of USD 35.11 billion by 2027
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 data center market in China and Hong Kong recorded investments of 30 USD.
New York, Jan. 31, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the publication of the report “Data Center Market in China & Hong Kong – Industry Outlook & Forecast 2022-2027” – https://www.reportlinker. com/p05955547/?utm_source=GNW
68 billion in 2021 and will see investments of USD 35.11 billion by 2027, growing at a CAGR of 2.27% during the period 2022-2027
The data center market in China and Hong Kong is one of the most mature markets in the world and is dominated by the cloud, telecom services and BFSI sectors. Most of the region’s data centers operate in major metropolitan cities such as Shanghai, Beijing, and Hong Kong. These locations have attracted considerable investment in recent years and more data centers are planned for the forecast period. Additionally, high internet penetration has accelerated the demand for hyperscale data centers with power capacity of over 15MW in China and Hong Kong.
OPPORTUNITIES AND TRENDS
• Sustainable initiatives in the country: The Chinese government is committed to achieving carbon neutrality by 2060 and has therefore invested in initiatives to minimize carbon emissions and improve air quality. In 2021, wind and solar power in China accounted for around 11% of total electricity consumption, which is expected to increase to around 16.5% by 2025. This is a huge opportunity for power providers. expand their business in the data center market in China. and Hong Kong by working towards sustainable initiatives. For example, Apple, together with its suppliers in China, will invest approximately $300 million in 2022 and develop projects generating approximately 1 GW of renewable energy in China.
• 5G deployment to strengthen the data center market: Up to September 2021, 5G operators have deployed around 993,000 5G base stations in China. About 390 million households have adopted 5G services, and this number is expected to increase over the forecast period. Thus, providing a 5G network has become an important criterion for offering internet services. In September 2021, China Mobile and China Broadcasting Network (CBN), a national cable operator, partnered to roll out a 700 MHz 5G implementation plan. In Hong Kong, SmarTone Mobile Communications entered the 5G market in 2020 with a fixed wireless network and partnered with Ericsson to deploy 5G in Hong Kong. The significant reach of 5G will propel the demand for edge data centers, especially in Tier II and Tier III cities in China and Hong Kong region, and drive the Internet data center market.
SOME RECENT DEVELOPMENTS AND INVESTMENTS
• In 2021, six companies, including telecom operators such as China Mobile and civil engineering firm Shanghai Tunnel Engineering, signed an agreement to provide 5G coverage in tunnels and bridges in Shanghai.
• In December 2021, EdgeConneX invested in Chayora, where the two companies have partnered to offer services from Chayora’s existing data centers with new expansion plans across China
• In February 2021, Mapletree acquired a parcel of land of approximately 43,000 square feet in the region, with an investment of approximately 104 million USD, and plans to build a 50 MW data center, which should be operational from 2023.
• In November 2021, Digital Realty opened a data center in Hong Kong (HKG11) with approximately 210,000 square feet and an electrical capacity of approximately 24 MW.
The following factors are likely to contribute to the growth of the data center market in China and Hong Kong –
• Increased adoption of working from home due to COVID 19
• Increase in big data and IoT spending
• Sustainable initiatives in the country
• 5G to fuel demand for edge data centers
• Increased investment in AI, blockchain and quantum computing
o Beijing: Beijing is one of the main hubs for cloud operators, as companies like Alibaba, Amazon Web Services (AWS) and Tencent are present. Amazon Web Services (AWS) should invest in the region to boost the country’s digital economy
o Shanghai: Shanghai is also one of the mature markets with a presence of local and global data center operators investing in the region
o Other cities: About 21% of the total investment in other cities came from Langfang, followed by Foshan and Tibet.
Market segmentation by geography
o Other cities
• Hong Kong
Market segmentation by infrastructure
• Informatique infrastructure
• Electrical infrastructure
• Mechanical infrastructure
• General construction
Market segmentation by IT infrastructure
• Server infrastructure
• Storage infrastructure
• Network infrastructure
Market segmentation by electrical infrastructure
• UPS systems
• Transfer switches and switchgear
• Electrical distribution units
• Other electrical infrastructure
Market segmentation by mechanical infrastructure
• Cooling systems
• Other mechanical infrastructure
Market segmentation by cooling systems
• CRAC and CRAH units
• Cooling units
• Cooling towers, condensers and air coolers
• Economizers and evaporative coolers
• Other cooling units
Market segmentation by cooling technique
• Air-based cooling technique
• Liquid-based cooling technique
Market segmentation by general construction
• Core and shell development
• Installation and commissioning services
• Engineering and building design
• Physical security
• Fire detection and extinction
Market segmentation by standard level
• Level I and II
• Level III
• Level IV
Market segmentation by establishment
• Hyperscale data centers
• Enterprise data centers
• Colocation data centers
• New entrants in the form of global colocation and cloud service providers are investing in the Chinese data center market due to strong customer demand to have a physical presence in the China and Hong Kong market, such as CapitaLand which is investing in the region in 2021.
• Global cloud service providers such as AWS, Microsoft, Alibaba, Tencent, IBM, Oracle and Google continue to expand their presence in the region with new cloud regions.
• Hewlett Packard Enterprise is a leading server vendor in the region. The average selling price of its server infrastructure increased along with unit shipments due to an increase in demand.
Top IT Infrastructure Providers
• Cisco Systems
• Dell Technologies
• Hewlett Packard Enterprise (HPE)
• Hitachi Vantara
• Juniper Networks
• Pure storage
• Quanta Cloud Technology (QCT)
Top Support Infrastructure Providers
• AIRSYS Group
• Delta Electronics
• Electric Fuji
• HITEC power protection
• Rolls Royce
• Schneider Electric
• Shenzhen KSTAR Science and Technology
• Vertiv Group
Renowned construction contractors
• Aurecon Group
• AWP architects
• BYME Engineering
• Chung Hing Group of Engineers
• DSCO Group
• Studio One design
• Construction Gamon
• NTT Facilities
Top Data Center Investors
• 21Vianet (VNET)
• AirTrunk Operation
• Big data exchange
• Chindata Group
• China Unicom
• CITIC Telcom International Holdings
• Digital real estate
• GDS Services
• Global Switch
• Keppel data centers
• OneAsia Network
• Princeton Digital Group
• Shanghai Atrium (AtHub)
• Qnet Shanghai (Qnet Shanghai networking technology)
• Telekomunikasi Indonesia (Persero)
• Tencent Holdings
•Tenglong Holdings Group
• Vantage Data Centers
• Capital Land
• Mapletree Investments
ANSWERS TO KEY QUESTIONS:
1. What is the current and future size of the data center market in China and Hong Kong?
2. Who are the major investors in the data center market in China and Hong Kong?
3. What are the factors driving the growth of the data center colocation market in China and Hong Kong?
4. Which data center vendors are expanding into China and Hong Kong to further drive the growth of the data center industry?
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