The China and Hong Kong data center market is expected to grow at a CAGR of approximately 4% during the period 2020−2026. The report has market size in terms of area square feet and power capacity in MW.
1. The China and Hong Kong data center market contributed to over 12% of the global data center investments in 2020, with China adding around 11% and Hong Kong adding the rest.
2. The ongoing COVID-19 pandemic, growth in data generated, high penetration of 5G, connected devices, smart cities, and along with significant government initiatives are major drivers for the region's data center growth.
3. In China, the local government is taking initiatives to implement 800 smart city pilot programs currently in progress in various regions. Also, cities such as Beijing, Shanghai, Shenzhen, and Guiyang are developed as smart cities to enhance the quality of life of citizens.
4. China leads the global market in the construction of wind and solar energy facilities, however with support for coal coexisting with the promotion of renewable energy. The country aims to achieve carbon neutrality by 2060.
5. China's official cryptocurrency named e-Yuan, developed by the People's Bank of China is being tested in Shenzhen and Suzhou, and will attract further investment in the country.
6. Due to scarcity of land for data center development in Hong Kong, more brownfield constructions will be seen during the forecast period, and the price of industrial land is expected to rise further.
* Market Size & Forecast by Revenue | 2020−2026
* Market Dynamics – Leading trends, growth drivers, restraints, and investment opportunities
* Market Segmentation – A detailed analysis by IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, cooling technique, general construction, tier standards, and geography
* Competitive Landscape – 9 IT infrastructure providers, 15 support infrastructure providers, 11 construction contractors, and 21 data center investors
* 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.
* 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.
* UPS Systems
* Transfer Switches and Switchgears
* Other Electrical Infrastructures
* Cooling Systems
* CRAC & CRAH Units
* Chiller Units
* Cooling Towers, Dry Coolers, & Condensers
* Economizers and Evaporative Coolers, and Other Units
* Other Mechanical Infrastructure
* Other Cooling Units
* Others Mechanical Infrastructure
* Air-based Cooling Technique
* Liquid-based Cooling Technique
* Core and Shell Development
* Installation and Commissioning Services
* Engineering and Building Designs
* Physical Security
* Tier I & II
* Tier III
* Tier IV
Data center investments in China & Hong Kong are witnessing significant growth because of the rising digitization in the region owing to higher internet adoption as well as a result of the COVID-19 pandemic. Unlike other regions where demand drives data center construction, the China & Hong Kong market is witnessing the development of "anticipatory" data centers, with the infrastructure already ready to cater to future demand. The China & Hong Kong market dominates the world in terms of the number of internet users and high penetration among social media and other digital platforms. The most popular social media platform is Weixin, which accounted for a 75% share of users in 2020, followed by Sina Weibo and Kuaishou. The China & Hong Kong market dominates the world in terms of the number of internet users and high penetration among social media and other digital platforms.
* 5G Implementation to Drive Edge Data Centers
* Smart Cities Fuel Data Center Demand
* COVID-19 on Data Center Investments
* Growing Demand for Hyperscale Data Centers
The data center market in China is growing YoY aided by strong growth in internet connectivity across the country and an increasing number of submarine cable deployments connecting China with the rest of the world. In 2020, submarine cable projects Hainan-Hong Kong Submarine Cable System, with a length of 780 km, and the Southeast Asia-Japan Cable 2 (SJC2), with a length of 10,500 km, connected China with Singapore, Japan, Taiwan, Korea, and Vietnam. The (SJC2) investment consortium consists of Facebook, China Telecom, Telin, Singtel, VNPT-Vinaphone, and True Corporation. This project is expected to be operational by Q4 2020. 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 will boost the construction of colocation facilities and prompt regional cloud service providers to establish multiple availability zones across the country along with the growing demand for hybrid infrastructure services.
* Other Cities
* Hong Kong
* Hewlett Packard Enterprise (HPE)
* Cisco Systems
* Dell Technologies
* Hitachi Vantara Corporation
* Huawei Technologies
* Quanta Cloud Technology (Quanta Computer)
* Delta Electronics
* Fuji Electric
* Schneider Electric
* HITEC Power Protection
* Mitsubishi Electric Corporation
* Rolls-Royce Power Systems
* Shenzhen Kstar Science and Technology
* AirTrunk Operating
* Amazon Web Services (AWS)
* China Unicom
* CITIC Telcom International Holdings
* 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)
* Arup Group
* Aurecom Group
* AWP Architects
* BYME Engineering (HK)
* Chung Hing Engineers Group
* DSCO Group
* Gammon Construction
* Studio One Design
* NTT Global Data Centers
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