As per MRFR analysis, the China Data Center Rack Market Size was estimated at 698.07 (USD Million) in 2023. The China Data Center Rack Market Industry is expected to grow from 910.3(USD Million) in 2024 to 2,195.38(USD Million) by 2035. The China Data Center Rack Market CAGR (growth rate) is expected to be around 8.332% during the forecast period (2025 - 2035).
The rapid digitalization and higher demand for cloud services are driving substantial trends in the China Data Center Rack Market. Businesses are investing significantly in data centers as a result of the government's initiative to advance its digital economy. Organizations are increasingly recognizing the necessity of sophisticated data center infrastructure in the context of the Internet of Things, artificial intelligence, and big data. Consequently, they are increasing their investments in data center racks and related technologies. Furthermore, energy efficiency has emerged as a critical priority, as organizations endeavor to reduce operational expenses and satisfy regulatory mandates concerning energy consumption.
Additionally, the data center rack market is presented with numerous opportunities for growth due to the ongoing development of e-commerce and online services in China. As an increasing number of organizations transition to online operations, there is an increasing demand for data center solutions that are both efficient and scalable. The emergence of 5G technology also presents opportunities for data center advancements, necessitating the implementation of more advanced rack solutions to accommodate the increased connectivity and facilitate faster data processing. In recent years, there has been a significant shift toward modular data center designs among Chinese companies.
These designs enable businesses to rapidly adjust to evolving demands by facilitating flexible expansion.The necessity for more sustainable practices has also driven innovations in data center rack technology, as companies seek eco-friendly solutions to satisfy both regulatory standards and consumer expectations. Consequently, organizations are emphasizing the integration of intelligent technology into their cabinets in order to enhance operational efficiency and optimize performance. In general, the China Data Center Rack Market is adapting to these trends, thereby preparing for future growth and innovation.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The rapid expansion of cloud computing services in China is a significant driver of the China Data Center Rack Market Industry. As of 2021, the Chinese cloud computing market was valued at approximately 141 billion yuan (around 22 billion USD), indicating a staggering growth trajectory. Major players like Alibaba Cloud, Tencent Cloud, and Huawei Cloud are investing heavily in infrastructure to support this expansion. The Chinese government has also been promoting cloud computing on a national level, as per the Ministry of Industry and Information Technology, which is anticipated to raise the total investment in data centers and related infrastructure.
This focus on cloud services is expected to lead to a steady rise in demand for data center racks, as these facilities must continuously scale up to accommodate the growing workloads. It is projected that by 2025, the cloud services market in China will surpass 300 billion yuan, creating significant opportunities within the data center rack segment.
The surge in internet usage in China, particularly following the COVID-19 pandemic, has significantly increased the need for data center capacity, and according to the Ministry of Industry and Information Technology, internet traffic in China increased by over 25% in 2020 alone. As more consumers move towards online services for work, education, and entertainment, businesses are required to bolster their data center infrastructure. This rise in internet users and data consumption directly translates to greater demand for data center racks to house the necessary equipment.
Notable firms like Baidu and JD.com are expanding their operations, further propelling this need. The increase in online activities is expected to grow the data center rack market as more companies invest in robust infrastructure to support high data transmission levels.
The Chinese government has been actively supporting the development of data centers, which serve as a key driver for the China Data Center Rack Market Industry. Policies such as the 14th Five-Year Plan emphasize the enhancement of digital infrastructure and the establishment of smart cities, ultimately leading to increased investments in data centers. In recent years, over 100 billion yuan has been allocated to enhance digital infrastructure, part of which will feed into the demand for data center racks.
The government has also been pushing for sustainability standards in data center construction, promoting energy-efficient technologies that require robust rack infrastructure designed to be adaptable. This ongoing commitment to enhancing digital capabilities reinforces the need for substantial growth in the data center rack market.
The growing emphasis on artificial intelligence (AI) and big data in China greatly influences the demand for data center racks. Enterprises across various sectors are increasingly utilizing AI for data-intensive applications, driving the need for high-performance computing environments. According to a report by the National Bureau of Statistics, investments in AI by Chinese companies reached over 170 billion yuan in 2020, marking an increase of nearly 30% compared to the previous year.
Companies such as Huawei and Tencent are leading the charge in AI technology development, necessitating scalable data centers to manage the massive data generated. The surge in big data analytics workloads requires advanced data center solutions, including efficient and versatile rack systems. As the adoption of AI and big data continues to rise, so will the demand for sophisticated data center racks to support this evolution.
The China Data Center Rack Market, particularly in the Component segment, exhibits robust dynamics attributed to the increasing demand for efficient data processing and storage solutions. This market consists of essential elements that contribute significantly to the overall functionality and efficiency of data centers. Among the key components, solutions play a vital role by providing innovative technologies that optimize space, power efficiency, and cooling management. These solutions help organizations enhance their operational capabilities while responding to the growing data processing demands fueled by digital transformation initiatives across various industries in China. The trend towards virtualization, cloud computing, and the advancement of Artificial Intelligence has further intensified the need for highly adaptable data center racking solutions.
On the other hand, services related to data center racks are equally crucial in maintaining the infrastructure, ensuring operational continuity, and optimizing performance. The service segment encompasses a broad range of offerings, including installation, maintenance, and technical support, which are indispensable for the efficient management of data racks. As China experiences rapid urbanization and an uptick in internet usage, the expansion of data center facilities has prompted an increased focus on these services. This facet of the market supports the scalability and durability of data center operations, allowing businesses to implement growth strategies aligned with the ever-evolving technological landscape.
The synergy between solutions and services within the Component segment reinforces the necessity for innovation in the China Data Center Rack Market, ultimately driving growth and enhancing customer experiences. With China being one of the largest digital markets globally, the significance of both solutions and services in this segment cannot be overstated, as they cater to the growing need for efficient and high-capacity data centers across the region.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
The China Data Center Rack Market is primarily categorized by Rack Type, which includes Cabinets/Enclosed Racks and Open Frame Racks. Enclosed Racks are prevalent due to their ability to provide optimal security and temperature control for sensitive equipment, making them essential in maintaining data integrity. This segment addresses the increasing concerns regarding data security and equipment protection among organizations in China. Open Frame Racks, on the other hand, are gaining traction for their flexibility and ease of access, catering to the growing demand for efficient airflow and cable management in data centers.
Their design facilitates efficient maintenance, a critical factor as businesses prioritize operational uptime in a rapidly evolving digital landscape. With the industry’s growth fueled by the expansion of cloud computing and the increasing need for server capacity, the significance of these Rack Types will continue to rise as they play a crucial role in optimizing the performance of data centers. The demand for data center infrastructure in China is expected to boost the adoption of both Cabinets/Enclosed Racks and Open Frame Racks, reflecting the evolving trends in the data center landscape.
The China Data Center Rack Market is witnessing significant growth, particularly within the Data Center Size segment, which includes Large Data Centers and Small and Mid-sized Data Centers. Large Data Centers are gaining prominence due to the increasing demand for cloud computing services and advanced data storage solutions, driven by the surge in digital transformation across various sectors in China. Simultaneously, Small and Mid-sized Data Centers are essential for accommodating the needs of emerging enterprises and localized services, providing agility and cost-effectiveness.These smaller facilities often utilize innovative designs and energy-efficient technologies, which align with China's focus on sustainability.
The market environment is also influenced by the Chinese government’s initiatives aimed at promoting digital infrastructure development, effectively boosting the requirements for both large-scale and smaller data center facilities. As a result, the diversity within this segment caters to a wide range of industries and applications, contributing significantly to the overall landscape of the China Data Center Rack Market.
The Rack Height segment of the China Data Center Rack Market plays a vital role in the overall industry dynamics, characterized by various categories such as 42U and Below, 43U up to 52U, and above 52U. Each of these categories serves different needs within data centers, providing solutions that help optimize space and enhance operational efficiency. The 42U and Below segment is prevalent due to its combination of standardization and flexibility, making it favorable for small to mid-sized data centers. The 43U up to 52U segment is gaining traction as the industry demands increased storage capacity while maintaining manageable footprints, reflecting the growing data requirements.
Lastly, the Above 52U segment, although niche, is significant for hyper-scale data centers that need extensive capacity and cooling solutions. This segment's growth is driven by rising data consumption and cloud services expansion in China, where the market is expected to witness increased investments in infrastructure. Overall, the segmentation within the Rack Height category highlights a diverse approach aimed at addressing the needs of different data center configurations, which is critical for the advancement of the China Data Center Rack Market industry.
The China Data Center Rack Market is influenced significantly by various industry verticals, each contributing to the overall dynamics of the market. The Banking, Financial Services, and Insurance (BFSI) sector plays a crucial role, as it demands high-security solutions and consistent reliability for its operations. The Manufacturing sector increasingly adopts advanced data management solutions, utilizing data center racks to enhance process efficiency and reduce operational costs. The IT and Telecom industry remains a major driver, as it relies heavily on effective data management and storage solutions to support rapid technological advancements and the growing demand for digital services.
Retail businesses are leveraging data center racks to manage inventory and improve customer experience by utilizing data analytics. In Healthcare, the necessity for secure patient data management and the processing of large volumes of information underscores the demand for robust data solutions. Furthermore, the Media and Entertainment segment thrives on vast data storage needs to cater to digital content delivery and streaming, thus contributing to the market’s expansion. The 'Others' category reflects diverse industries that also embrace data center technologies, enhancing overall market growth. Collectively, these segments illustrate the integral role of the China Data Center Rack Market in driving efficiency and innovation across various sectors.
The China Data Center Rack Market is experiencing significant growth driven by the rise of cloud computing, increasing data storage needs, and the demand for energy-efficient solutions. Competitive insights in this market reflect an evolving landscape characterized by a multitude of players, each vying for market share through innovation, advanced technology offerings, and strategic partnerships. Domestic firms are leveraging their understanding of the local market dynamics, while international companies are focusing on establishing a strong presence through collaborations and localized services. The competition is also influenced by the rapid advancements in automation, cooling technologies, and modular design capabilities, which are essential for meeting the diverse requirements of data center infrastructure.
Huawei is a leading force in the China Data Center Rack Market through its development of highly integrated and energy-efficient rack solutions. The company offers advanced rack systems tailored for cloud computing, AI workloads, and edge data centers. Huawei’s solutions are known for modularity, supporting rapid deployment and flexible scaling to meet evolving enterprise needs. With its CloudMatrix platform and AI-powered infrastructure, Huawei enhances performance optimization and resource management across rack environments. The company’s vertical integration—from servers and networking to power and cooling—ensures seamless interoperability and cost efficiency. Additionally, Huawei collaborates with local operators and government-backed projects, aligning its innovations with national digitalization goals and reinforcing its dominant role in shaping China’s data center infrastructure.
Hewlett-Packard Enterprise holds a prominent place in the China Data Center Rack Market, driven by its comprehensive range of products and services designed to support diverse data center environments. The company offers advanced racks, integrated solutions, and power management technologies that cater to the increasing demands of businesses in China. With a strong focus on innovation, Hewlett-Packard Enterprise has developed a suite of products that emphasize performance, reliability, and energy efficiency. Its market presence is bolstered by strategic mergers and acquisitions that enhance its capabilities and expand its footprint in the region. HPE is committed to providing tailored solutions that align with local market needs, reinforcing its position as a key player in the competitive landscape of the China Data Center Rack Market.
The China Data Center Rack Market is experiencing significant growth and developments, driven primarily by increasing demand for cloud services and digital transformation initiatives among enterprises. In recent months, notable trends include a heightened focus on energy-efficient and scalable data center solutions, reflecting China's commitment to sustainability as outlined in government policies. Companies like Alibaba Cloud and Tencent Cloud are investing heavily in expanding their infrastructure to support growing data processing needs.
Mass shipments of Huawei's CloudMatrix 384 AI rack clusters across China commenced in February 2025. These rack-scale systems, which are equipped with dual-chiplet Ascend 910C processors, provide high-bandwidth optical interconnects and unparalleled compute density for AI workloads in data centers. In September 2024, Inspur introduced a novel rack-scale cooling technology that is specifically designed for high-density server environments and AI. The thermal efficiency of Chinese data centers is substantially enhanced by the design, which was unveiled at a significant data center conference.
. Major players such as Huawei and Lenovo are also competing aggressively in developing innovative racks and modular solutions, aligning with the evolving technological landscape. Over the past two to three years, the market has seen substantial investments aimed at advancing Research and Development capabilities, allowing companies to offer enhanced features that cater to the diverse requirements of various industries across China. The overall market sentiment remains positive as demand accelerates, reflecting the significance of digital infrastructure in national economic growth.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 698.07(USD Million) |
| MARKET SIZE 2024 | 910.3(USD Million) |
| MARKET SIZE 2035 | 2195.4(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 8.332% (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 Million |
| KEY COMPANIES PROFILED | Kingsoft Cloud, Hewlett Packard Enterprise, Digital China, ZTE, Supermicro, Huawei, Dell Technologies, China Telecom, Cisco Systems, Lenovo, Baidu Cloud, Tencent Cloud, Inspur, Alibaba Cloud, China Unicom |
| SEGMENTS COVERED | Component, Rack Type, Data Center Size, Rack Height, Industry Vertical |
| KEY MARKET OPPORTUNITIES | Increased cloud computing demand, Growing AI and big data applications, Expansion of 5G infrastructure, Rising energy efficiency regulations, Demand for scalable solutions |
| KEY MARKET DYNAMICS | growing demand for cloud services, increased data consumption, energy efficiency regulations, rise in colocation facilities, technological advancements in racks |
| COUNTRIES COVERED | China |
Frequently Asked Questions (FAQ) :
The China Data Center Rack Market is expected to be valued at 910.3 million USD in 2024.
By 2035, the China Data Center Rack Market is projected to reach a valuation of 2195.4 million USD.
The expected CAGR for the China Data Center Rack Market from 2025 to 2035 is 8.332%.
Key players in the China Data Center Rack Market include Kingsoft Cloud, Hewlett Packard Enterprise, Digital China, ZTE, Supermicro, Huawei, and others.
The solution segment of the China Data Center Rack Market is valued at 455.2 million USD in 2024.
The service segment is projected to reach a value of 1112.9 million USD in 2035.
The China Data Center Rack Market presents growth opportunities driven by increased demand for data center efficiency and scalable solutions.
Emerging trends in the market include the adoption of advanced cooling techniques and an increase in cloud-based solutions.
The regional demand is shaped by the rapid growth of technology infrastructures across major cities in China.
Challenges may include rising competition and keeping pace with technological advancements in data center solutions.
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