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    China Data Center Market

    ID: MRFR/ICT/43149-HCR
    200 Pages
    Garvit Vyas
    September 2025

    China Data Center Market Research Report: By Type (Corporate data centers, Web hosting data centers), By Density (Low, Medium, High, Extreme), and By Vertical (Banking Financial Services, Telecom IT, Government, Healthcare) - Forecast to 2035.

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    China Data Center Market Infographic
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    China Data Center Market Summary

    The Global China Data Center Market is projected to grow from 235.94 USD Billion in 2024 to 541.32 USD Billion by 2035, indicating a robust growth trajectory.

    Key Market Trends & Highlights

    China Data Center Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate of 7.84 percent from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 541.32 USD Billion, reflecting substantial investment in data infrastructure.
    • In 2024, the market is valued at 235.94 USD Billion, highlighting the current scale of data center operations in China.
    • Growing adoption of cloud computing due to increasing digital transformation initiatives is a major market driver.

    Market Size & Forecast

    2024 Market Size 235.94 (USD Billion)
    2035 Market Size 541.32 (USD Billion)
    CAGR (2025 - 2035) 7.84%

    Major Players

    Apple Inc (US), Microsoft Corp (US), Amazon.com Inc (US), Alphabet Inc (US), Berkshire Hathaway Inc (US), Tesla Inc (US), Meta Platforms Inc (US), Johnson & Johnson (US), Visa Inc (US), Procter & Gamble Co (US)

    China Data Center Market Trends

    The market for data centers in China is expanding significantly due to the rise in demand for big data analytics and cloud services. Many businesses are making significant investments in modernizing their infrastructure in order to meet the nation's growing demands for data processing and storage as it moves toward digital transformation.

    Through a number of programs designed to foster innovation in the high-tech industry, which includes data centers, the government is aggressively supporting this trend.

    Additionally, new data facilities are being established as a result of the emphasis on improving internet connection, especially in rural and isolated locations. Sustainability and energy efficiency are also emerging as major industry drivers.

    China is adopting energy-efficient designs for new data centers as a result of its emphasis on green technologies. In addition to addressing environmental issues, this movement supports governmental initiatives to lower carbon emissions. Data centers are increasingly being powered by renewable energy, which reflects a larger commitment to sustainable development.

    The China data center market offers a wealth of opportunities, especially in the areas of edge computing and hybrid cloud solutions.

    The incorporation of cutting-edge technology like machine learning and artificial intelligence into data center operations has been a major trend in recent years.

    China

    The rapid expansion of digital infrastructure in China is poised to drive unprecedented growth in the data center market, reflecting the nation's commitment to becoming a global leader in technology and innovation.

    Ministry of Industry and Information Technology, China

    China Data Center Market Drivers

    Market Growth Projections

    Emergence of Edge Computing

    The emergence of edge computing is reshaping the landscape of the Global China Data Center Market Industry. As the Internet of Things (IoT) proliferates, the need for localized data processing becomes increasingly critical. Edge computing allows data to be processed closer to the source, reducing latency and enhancing performance. This trend is likely to drive the establishment of smaller, decentralized data centers that complement traditional facilities. The integration of edge computing solutions is expected to contribute to the overall growth of the market, as organizations seek to optimize their operations and improve user experiences. The Global China Data Center Market Industry is thus adapting to these technological advancements.

    Increased Focus on Data Security

    Data security remains a paramount concern for organizations, thereby influencing the Global China Data Center Market Industry. With the rise in cyber threats and data breaches, companies are prioritizing secure data storage and management solutions. This heightened focus on security drives investments in advanced technologies and infrastructure within data centers. As organizations seek to comply with stringent regulations and protect sensitive information, the demand for secure data center solutions is likely to grow. Consequently, the market is expected to witness a compound annual growth rate of 7.84% from 2025 to 2035, underscoring the importance of data security in the Global China Data Center Market Industry.

    Rising Demand for Cloud Services

    The Global China Data Center Market Industry experiences a notable surge in demand for cloud services, driven by the increasing adoption of digital transformation across various sectors. As organizations migrate to cloud-based solutions, the need for robust data centers intensifies. In 2024, the market is projected to reach 235.94 USD Billion, reflecting the growing reliance on cloud infrastructure. This trend is likely to continue, with the market expected to expand significantly as businesses seek scalable and flexible solutions to accommodate their data needs. The shift towards cloud services is a pivotal factor influencing the growth trajectory of the Global China Data Center Market Industry.

    Government Initiatives and Support

    Government initiatives play a crucial role in shaping the Global China Data Center Market Industry. The Chinese government actively promotes the development of data centers through favorable policies and investments in infrastructure. This support is evident in the establishment of special economic zones and incentives for technology companies. Such initiatives not only enhance the operational efficiency of data centers but also attract foreign investments. As a result, the market is poised for substantial growth, with projections indicating a rise to 541.32 USD Billion by 2035. The proactive stance of the government is a significant driver of the Global China Data Center Market Industry.

    Sustainability and Green Initiatives

    Sustainability has become a focal point for the Global China Data Center Market Industry, as organizations strive to reduce their carbon footprint. The increasing awareness of environmental issues prompts data centers to adopt energy-efficient practices and renewable energy sources. Initiatives such as utilizing advanced cooling technologies and optimizing power usage effectiveness are gaining traction. This shift towards sustainability not only aligns with global environmental goals but also enhances the operational efficiency of data centers. As a result, the market is likely to benefit from this trend, with organizations prioritizing green initiatives in their data center strategies.

    Market Segment Insights

    Data Center Market Type Insights

    The China Data Center Market, delineated by various types, showcases a diverse and dynamic landscape that is driving significant growth in the industry. In particular, corporate data centers and web hosting data centers are notable components that play crucial roles in the market's expansion.

    Corporate data centers support business operations by providing secure, reliable, and scalable infrastructure tailored to meet specific organizational needs. They are essential for enterprises looking to enhance their digital capabilities and ensure data sovereignty, especially given the regulatory environment in China that emphasizes data security and privacy.

    On the other hand, Web hosting data centers have gained prominence due to the rapid growth of online services and applications, significantly contributing to the digital economy. As more businesses leverage cloud services and e-commerce platforms, the demand for Web hosting solutions continues to surge.

    This sub-segment not only serves individual customers but also supports small to medium-sized enterprises seeking cost-effective hosting solutions, aiding in their scalability and growth. The significance of these types of data centers is illustrated by their ability to cater to varying needsfrom shared hosting to dedicated resourcesthus accommodating a diverse clientele.

    Furthermore, the interplay between these types drives innovation and competition. As companies within China look to enhance operational efficiencies and reduce latency, the development of hyper-scale data centers has become increasingly relevant.

    Data Center Market Density Insights

    The China Data Center Market is experiencing notable growth within the Density segment, which encompasses various configurations, including Low, Medium, High, and Extreme density levels. Each of these configurations serves specific needs, reflecting the diverse requirements across different industries.

    Low-density data centers tend to be cost-effective and are commonly utilized for less demanding applications, whereas Medium density environments can efficiently support a balance of performance and energy use. High-density setups have gained traction as enterprises aim for enhanced computing power in limited physical space, thus optimizing their operations.

    On the other hand, Extreme density configurations are essential for high-performance computing and data-intensive applications, catering to sectors like artificial intelligence and big data analytics. China's commitment to advancing its digital economy and robust demand for cloud services are key drivers propelling the growth of these density categories.

    The rapid adoption of technologies such as 5G and IoT further necessitates sophisticated data center configurations to manage vast data volumes. As the landscape evolves, understanding these density dynamics is crucial for stakeholders aiming to capitalize on the burgeoning opportunities within the China Data Center Market.

    Data Center Market Vertical Insights

    The China Data Center Market is gaining momentum, particularly within the Vertical segment, which encompasses critical sectors such as Banking, Financial Services, Telecom IT, Government, and Healthcare.

    The rapid digitization in China has resulted in an increased demand for data processing and storage capabilities, especially in Banking Financial Services, where the focus on cybersecurity and data compliance drives growth. The Telecom IT industry further contributes to this trend, supporting the demand through advanced connectivity solutions and network efficiency improvements.

    Government initiatives aimed at enhancing digital infrastructure further solidify the importance of data centers, facilitating public services and e-governance. Moreover, the Healthcare sector requires robust data management for patient records and telemedicine, leading to significant growth in data center investments.

    As these industries evolve, the demand for specialized data center solutions continues to rise, shaping key trends and opportunities in the market while addressing specific sector needs. The overall dynamics reveal a cohesive interplay of technological advancement and regulatory frameworks, underscoring why this Vertical segment is vital to the broader landscape of the China Data Center Market.

    Get more detailed insights about China Data Center Market Research Report – Global Forecast till 2032

    Key Players and Competitive Insights

    The China Data Center Market is characterized by rapid growth and intense competition driven by the increasing demand for cloud computing, big data analytics, and digital transformation across various industries.

    The market landscape is framed by a mix of local and international players, each striving to establish a foothold amidst evolving consumer preferences and technological advancements. The vast scale of China’s internet user base and the government's initiatives to promote digital infrastructure development present unique opportunities for data center operators.

    Competitive dynamics are influenced by factors such as energy efficiency, service reliability, cost-effectiveness, and compliance with regulations. Additionally, the ongoing trend of remote work and heightened reliance on online services have further spurred investment in this sector, prompting companies to innovate and diversify their service offerings.

    Digital Realty has made a significant impact within the China Data Center Market by leveraging its global expertise and extensive portfolio. The company has successfully positioned itself as a leader in providing robust collocation and interconnection solutions throughout the region.

    With a strong emphasis on sustainability, Digital Realty has invested in energy-efficient technologies and practices, aligning with China's growing focus on green initiatives. The company's strategic partnerships and local collaborations have enhanced its market presence, allowing it to cater to the specific needs of China enterprises.

    Digital Realty's commitment to strong operational efficiency and customer-centric solutions has bolstered its competitive edge, enabling it to effectively serve a diverse clientele while adapting to the rapid shifts in technological demands.

    NTT Communications has established a noteworthy presence in the China Data Center Market, offering a comprehensive suite of services, including data center operations, cloud services, and network connectivity.

    The company’s focus on innovation and customer requirements has positioned it as a reliable player in the region, maintaining high standards of service quality and operational excellence. NTT Communications boasts a network of state-of-the-art data centers strategically located across key areas in China, allowing for low-latency connections and efficient resource management.

    The company's strengths lie in its commitment to security, redundancy, and disaster recovery solutions, perfectly aligning with the expectations of enterprises in the region.

    Furthermore, NTT Communications has engaged in strategic mergers and acquisitions that have expanded its service capabilities and strengthened its foothold in China, making it a formidable competitor in the increasingly competitive data center landscape.

    Key Companies in the China Data Center Market market include

    Industry Developments

    In October 2023, China's data center market continues to evolve, driven by robust demand for cloud services and enhanced digital infrastructure.

    Significant developments include initiatives by major companies such as Alibaba and Tencent, both expanding their data center regions to accommodate the increasing needs of big data and AI applications. Furthermore, NTT Communications is notably collaborating with local firms to optimize energy-efficient data center solutions amid the country’s push for carbon neutrality.

    In recent mergers, GDS Holdings announced its acquisition of a stake in a strategic data center joint venture with China Telecom in September 2023, positioning itself for future growth within the burgeoning industry. Equinix, also expanding its presence, is focusing on Tier-1 cities, tapping into the high-speed connectivity demands.

    In August 2023, China Mobile completed investments to enhance its data center capacity in several provinces, signaling a broader trend towards state-led initiatives in expanding digital infrastructure.

    Market valuations for companies such as Inspur and Huawei have shown increased growth, reflecting their positions as key players in supporting the digital economy within China. The ongoing development signals a vibrant shift towards modernized data management solutions across the landscape.

    Future Outlook

    China Data Center Market Future Outlook

    The China Data Center Market is projected to grow at a 7.84% CAGR from 2024 to 2035, driven by increasing cloud adoption, digital transformation, and energy efficiency demands.

    New opportunities lie in:

    • Invest in AI-driven data management solutions to enhance operational efficiency.
    • Develop sustainable energy sources for data centers to meet regulatory standards.
    • Expand edge computing infrastructure to support IoT and real-time data processing needs.

    By 2035, the China Data Center Market is expected to be a pivotal player in global digital infrastructure.

    Market Segmentation

    Data Center Market Type Outlook

    • Low
    • Medium
    • High
    • Extreme

    Data Center Market Density Outlook

    • Banking Financial Services
    • Telecom IT
    • Government
    • Healthcare

    Data Center Market Vertical Outlook

    • Banking Financial Services
    • Telecom IT
    • Government
    • Healthcare

    Report Scope

    Report Scope: 
    Report Attribute/Metric Source: Details
    MARKET SIZE 2018 29.96(USD Billion)
    MARKET SIZE 2024 35.01(USD Billion)
    MARKET SIZE 2035 138.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 13.28% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Billion
    KEY COMPANIES PROFILED Digital Realty, NTT Communications, China Mobile, Alibaba, Huawei, Inspur, Baidu, Tencent, VMware, Chayora, Equinix, Lenovo, China Telecom, GDS Holdings, China Unicom
    SEGMENTS COVERED Type, Density, Vertical
    KEY MARKET OPPORTUNITIES Cloud computing expansion, Renewable energy integration, Enhanced data security requirements, Edge computing growth, Government investments in infrastructure
    KEY MARKET DYNAMICS Cloud computing adoption, Government regulations and incentives, Energy efficiency demands, 5G rollout impact, Increased data privacy concerns
    COUNTRIES COVERED China

    FAQs

    What is the expected market size of the China Data Center Market in 2024?

    The China Data Center Market is expected to be valued at 35.01 billion USD in 2024.

    What will be the projected market size of the China Data Center Market by 2035?

    By 2035, the China Data Center Market is projected to reach a value of 138.0 billion USD.

    What is the expected CAGR for the China Data Center Market from 2025 to 2035?

    The expected CAGR for the China Data Center Market from 2025 to 2035 is 13.28%.

    What segments make up the China Data Center Market?

    The China Data Center Market is segmented into Corporate data centers and Web hosting data centers.

    What is the market value of Corporate data centers in 2024?

    Corporate data centers in the China Data Center Market are valued at 14.0 billion USD in 2024.

    What is the market size of Web hosting data centers in 2024?

    Web hosting data centers are valued at 21.01 billion USD in the China Data Center Market in 2024.

    Who are the key players in the China Data Center Market?

    Key players in the China Data Center Market include Digital Realty, NTT Communications, China Mobile, Alibaba, and Huawei.

    What is the expected market value for Corporate data centers by 2035?

    Corporate data centers are expected to grow to 56.52 billion USD by 2035.

    What will the market size be for Web hosting data centers by 2035?

    Web hosting data centers are projected to reach a value of 81.48 billion USD by 2035.

    What are some emerging trends in the China Data Center Market?

    Emerging trends in the China Data Center Market include increased demand for cloud services and energy-efficient technologies.

    China Data Center Market Research Report – Global Forecast till 2032 Infographic
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