The China Data Center Market report segments the industry into Hotspot (Beijing, Guangdong, Hebei, Jiangsu, Shanghai, Rest of China), Data Center Size (Large, Massive, Medium, Mega, Small), Tier Type (Tier 1 and 2, Tier 3, Tier 4), and Absorption (Non-Utilized, Utilized). Includes historical data and forecasts for the next five years.

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China Data Center Market Size 2025-2029

The China data center market size is forecast to increase by USD 274.39 billion at a CAGR of 38.3% between 2024 and 2029.

The market is experiencing significant growth due to several key trends. One of the primary drivers is the increasing demand for hyper-converged data centers, which offer improved efficiency and agility for businesses. Another trend is the adoption of server disaggregation, enabling better utilization rates and reducing hardware waste. The adoption of 5G networks and edge computing is leading to faster data transmission speeds and the deployment of micro data centers. Additionally, there is a growing focus on consolidating data centers to reduce operational costs and enhance data security. These trends are shaping the future of the data center landscape and are expected to continue driving market growth in the coming years.

What will be the size of the China Data Center Market during the forecast period?

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The market is experiencing strong growth due to the expanding user base and increasing digital services adoption. Businesses require efficient infrastructure to support their data storage needs and ensure scalability in the face of growing data volumes. Regulatory requirements and sustainability concerns are driving the demand for energy-efficient solutions, such as green data centers powered by renewable energy like solar, wind, and hydroelectric electricity. Advanced technologies like artificial intelligence and machine learning are fueling the need for high computing power and large storage capacity. Hyper scalability is a key requirement for large enterprises, necessitating the use of cloud services and automation in modern business processes. The data center market is expected to continue its growth trajectory, driven by these trends and the increasing importance of data in business operations.
The market is witnessing hyper scalability, with the deployment of 5G networks and edge computing services enabling faster data transmission speeds and micro data centers for decentralized processing. Large enterprises are also leveraging cloud services for business scalability and advanced technologies like artificial intelligence and machine learning for data analysis. Automation is a significant trend In the market, streamlining operations and reducing human intervention. The market is expected to continue its growth trajectory, driven by these trends and the increasing importance of data In the digital economy.
The China data center market is experiencing robust growth, driven by the expansion of hyperscale data centers and edge computing. Cloud service growth is fueling the demand for high-density server deployment, while AI-driven infrastructure enhances operational efficiency. The adoption of liquid cooling technology and green data centers is addressing energy efficiency concerns, with renewable energy becoming a priority. Colocation services are gaining popularity, and the rise of 5G data processing is accelerating data handling capabilities. Government regulations are shaping the landscape, while hybrid cloud adoption and modular data centers offer flexibility. Additionally, digital transformation initiatives are pushing the need for smart data center solutions to meet evolving business demands.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  IT infrastructure
  Power management
  Mechanical construction
  General construction
  Others


End-user

  BFSI
  Telecom and IT
  Government
  Energy and utilities
  Others


Geography

  China

By Component Insights

The it infrastructure segment is estimated to witness significant growth during the forecast period.

The market is experiencing significant growth due to increasing digital services, data storage needs, and expanding user bases. Regulatory requirements and business scalability are driving the demand for efficient infrastructure, computing power, and green data centers. Renewable energy sources, such as solar, wind, and hydroelectric electricity, are being integrated to ensure sustainability and reduce energy consumption. Energy-efficient solutions and the implementation of 5G networks are enhancing data transmission speeds and enabling edge computing services. The market consists of the hardware and software segments, including enterprise network equipment, virtualization, professional services, hyperscale data centers, and various data center types, such as micro, compact, and modularized. Energy-efficient solutions and automation are crucial for reducing energy consumption and optimizing asset performance management. Large ent

The China Data Center Construction Market report segments the industry into By Infrastructure (By Electrical Infrastructure, By Mechanical Infrastructure, General Construction), By Tier Type (Tier 1 and 2, Tier 3, Tier 4), and By End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Other End Users).

In 2023, the China Data Center Market value reached $14.47 billion, and is projected to surge to $33.37 billion by 2030 at a CAGR of 12.7% from 2024 to 2030

The China Data Center Power Market is Segmented by Component (Electrical Solutions, Services), by Data Center Type (Hyperscaler/Cloud Service Providers, Colocation Providers, and More), by Data Center Size (Small Size Data Centers, Medium Size Data Centers, Large Size Data Centers and More), by Tier Type (Tier I and II, Tier III, Tier IV) and Region. The Market Forecasts are Provided in Terms of Value (USD)

The China data center market size will witness investments of USD 89.67 billion by 2030, growing at a CAGR of 9.14% during the forecast period.

In 2023, the size of the data center market in China exceeded *** billion yuan, a *** billion yuan increase compared to the previous year. AI and cloud computing services require large amounts of computing power, which is provided in data centers. Often they are located in provinces with colder climate and access to cheap energy, such as Inner Mongolia or Guizhou

China Data Center Rack Market is Segmented by Rack Size (Quartely Rack, Half Rack, Full Rack), Rack Height (42U, 45U and More), Rack Type (Cabinet (Closed) Racks, Open-Frame Racks, Wall-Mount Racks), Data Center Type (Colocation Facilities, Hyperscale and Cloud Service Provider DCs, Enterprise and Edge), Material (Steel, Aluminum, Other Alloys and Composites). The Market Forecasts are Provided in Terms of Value (USD).

The Asia-Pacific (APAC) data center construction market is experiencing robust growth, driven by the region's burgeoning digital economy, increasing cloud adoption, and the expansion of 5G networks. The market's Compound Annual Growth Rate (CAGR) of 8.62% reflects this significant expansion, with a projected market size exceeding (estimated based on provided CAGR and assuming a 2025 market size of $XX million, a reasonable size considering the regional context) $YY million by 2033. Key drivers include government initiatives promoting digital infrastructure development, the rising demand for data storage and processing capacity from various industries (including banking, finance, IT, and telecommunications), and the increasing preference for colocation facilities. Significant investments in hyperscale data centers are also contributing to market expansion. China, India, Japan, and Australia are leading the growth, fuelled by increasing internet penetration, e-commerce activities, and the strategic need to support national digital transformation strategies. However, the market faces constraints such as high land costs in major metropolitan areas, regulatory hurdles in certain regions, and the need for skilled labor to manage and maintain sophisticated data center infrastructure. The segmentation of the market by infrastructure type (electrical, mechanical, general construction), Tier level (I-IV), and end-user industries allows for a granular understanding of growth opportunities within specific niches. The APAC data center construction market's segmentation offers valuable insights into specific growth areas. Electrical infrastructure, encompassing power distribution solutions (PDUs, transfer switches, switchgear), power backup solutions (UPS, generators), and related services, constitutes a significant portion of the market. Mechanical infrastructure, crucial for maintaining optimal operating temperatures, comprises cooling systems (immersion, direct-to-chip, rear door heat exchangers, in-row/in-rack cooling) and racks. The market's growth is significantly impacted by the size of data centers, ranging from small to mega-scale facilities. Tier-III and Tier-IV data centers, characterized by higher levels of redundancy and reliability, are attracting substantial investment, further boosting market expansion. Understanding the specific requirements and preferences of different end-user sectors—banking, financial services, IT, telecommunications, government, and healthcare—is key to navigating this dynamic market and identifying profitable opportunities. Competitive analysis across major players highlights the intense competition and strategic alliances that shape the market landscape. Recent developments include: June 2023: Bridge Data Centers announced expanding its hyperscale data centers with an IT power capacity of 64MW in Kuala Lumpur, Malaysia. This provides opportunities for Data Center Construction Vendors in the market., July 2022: L&T Construction's Buildings & Factories business bagged a contract from renowned data center service providers to construct data centers with a total capacity of 10.8 MW in Mumbai and Navi Mumbai.. Key drivers for this market are: 9.1 Growing Demand for SMAC (Social, Mobile, Analytics, and Cloud) Applications9.2 Growing Adoption of Hyperscale Data Centers in Large Enterprises9.3 Major Initiatives Undertaken by Governments to Promote Digital Economy and Connectivity Infrastructure. Potential restraints include: 10.1 Environmental, Cost, and Workforce-related Challenges. Notable trends are: China witnessing rapid data center construction activities.

The China data center market is experiencing explosive growth, projected to reach a market size of $5.39 billion in 2025, fueled by a remarkable Compound Annual Growth Rate (CAGR) of 34.28%. This expansion is driven by several key factors. Firstly, the burgeoning digital economy in China necessitates substantial increases in data storage and processing capacity. The rapid adoption of cloud computing, big data analytics, and the Internet of Things (IoT) are creating immense demand for advanced data center infrastructure. Secondly, government initiatives promoting digital transformation and technological advancement are further stimulating investment in data centers across various sectors. Finally, increasing adoption of 5G and the expansion of high-speed internet connectivity are laying a robust foundation for the continued growth of the data center market. While the market enjoys significant growth momentum, certain challenges exist. Rising energy costs and concerns surrounding environmental sustainability are potential constraints. Furthermore, intense competition among established players and new entrants necessitates strategic innovation and differentiation to maintain market share. Segment-wise, the IT infrastructure component is expected to dominate, followed by power management solutions. The BFSI (Banking, Financial Services, and Insurance) sector represents a significant end-user segment, driven by the need for secure and reliable data storage and processing. However, the telecom and IT, government, and energy and utilities sectors are also significant contributors, exhibiting considerable growth potential in the forecast period (2025-2033). Key players like Alibaba, Tencent, and China Mobile are actively shaping the market landscape through strategic investments and expansion efforts, influencing market positioning and competitive strategies. Navigating the regulatory landscape and ensuring data security are crucial aspects for sustained growth in the coming years.

The size of the China Data Center Storage market was valued at USD XXX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 4.61% during the forecast period.These form one of the most important divisions of China's great and fast-moving technology sector. Data center storage refers to hardware and software specially created to manage data inside a corporation's data center. Such a system is pretty essential for most businesses and organisations, no matter how small they are, so that they store, access and analyze their valuables data resource smoothly.Data center storage systems form the basis for numerous applications, including cloud computing, big data analytics, e-commerce, and financial services. They underpin modern digital infrastructure that provides agility, scalability, and resilience to business operation. The massive growth of the volume of generated and stored data is sure to create massive growth in advanced data center storage solutions in the Chinese market. Key drivers for this market are: Expansion of IT Infrastructure to Increase Market Growth, Increased Investments in Hyperscale Data Centers To Increase Market Growth. Potential restraints include: High Initial Investment Cost To Hinder Market Growth. Notable trends are: IT & Telecommunication Segment to Hold Major Share in the Market.

As of April 2025, there were 449 data centers in China, the most of any country or territory in the Asia-Pacific region. China had the fourth-highest number of data centers worldwide. Data centers in China As the leading market in public cloud in the Asia-Pacific region and an aspiring global leader in artificial intelligence, China has placed considerable weight on data center infrastructure, which underlies most of the advances in internet technology. The country dominates the global data center market in terms of revenue, trailing only the United States. In addition, China accounted for around 16 percent of the worldwide hyperscale data center capacity in the 4th quarter of 2023. The data center segment revenue in China is expected to have an annual growth rate of around 8.3 percent between 2025 and 2029. The outlook of data centers in the Asia-Pacific region The pandemic has accelerated enterprise digitalization across the Asia-Pacific region, driving a surge in demand for computational power. This trend, coupled with advancements in artificial intelligence and the region's significant population growth, points to a promising future for data centers in the region. For instance, the revenue in the data center market in India was forecast to grow further and is set to reach about 11.85 billion U.S. dollars by 2029. Meanwhile, economic growth and increasing internet penetration rates in Southeast Asian countries have been the primary drivers for data center demand growth in the subregion.

China Data Center Market By Size, Share, Trends, Technology, Growth, Forecast 2027, Segmented By Solution, By Type, By End User Industry, By Region, Competition Forecast and Opportunities

China and Hong Kong data center market is forecasted to reach USD 35.11 billion in 2027.This report includes market size, share, trends and forecast 2022-2027.

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Data Center Market Size 2025-2029

The data center market size is forecast to increase by USD 535.6 billion, at a CAGR of 15.6% between 2024 and 2029.

The market is experiencing significant growth and transformation, driven by the increasing adoption of multi-cloud architectures and network upgrades. Businesses are recognizing the benefits of distributing their data across multiple cloud environments to improve agility, reduce costs, and enhance performance. This trend is leading to a surge in demand for advanced data center infrastructure and services. Another key driver is the implementation of Artificial Intelligence (AI) in data centers. AI is revolutionizing various industries by enabling automation, predictive analytics, and real-time insights. Data centers are no exception, as AI is being used to optimize energy consumption, improve security, and enhance operational efficiency.
However, this technological advancement also presents challenges. Cybersecurity issues are becoming increasingly sophisticated, with data centers being prime targets for cyberattacks. Ensuring data security and privacy is a major concern for organizations, necessitating significant investments in cybersecurity measures. Companies must navigate these challenges while capitalizing on the opportunities presented by the evolving data center landscape. To remain competitive, they must invest in advanced infrastructure, adopt innovative technologies, and prioritize cybersecurity to meet the demands of their customers and stakeholders.

What will be the Size of the Data Center Market during the forecast period?

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The market continues to evolve, driven by the ever-increasing demand for digital transformation and IT infrastructure growth across various sectors. HVAC systems, a critical component of data center operations, are continually advancing with precision cooling technologies to ensure optimal performance and energy efficiency. Modular data centers offer flexibility and scalability, while IT asset management solutions enable effective lifecycle management. Data center optimization strategies, including virtualization software and capacity planning, enhance operational efficiency and reduce costs. Surveillance cameras and access control systems ensure physical security, while fault tolerance and high availability ensure business continuity. Renewable energy integration and green data center initiatives prioritize sustainability.

Data center construction projects incorporate advanced designs and remote monitoring capabilities, while disaster recovery solutions safeguard against potential downtime. Support contracts and service-level agreements provide essential maintenance and backup systems. Network switches and load balancers facilitate seamless connectivity, and edge data centers extend network reach. Fire suppression systems and CRAC units maintain critical environments, while server virtualization and disaster recovery strategies ensure business continuity. Risk management and IT infrastructure strategies continue to adapt to the dynamic market landscape, with a focus on energy efficiency, network security, and data center design. The integration of virtual machines (VMs) and cloud computing further expands the market's potential.

Overall, the market remains a dynamic and evolving landscape, with ongoing advancements and applications across various industries.

How is this Data Center Industry segmented?

The data center industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  IT infrastructure
  Power management
  Mechanical construction
  General construction
  Security solutions


End-user

  BFSI
  Energy
  IT
  Others


Design

  Traditional
  Containerized
  Modular


Data Center Size

  Small and Medium Data Centers
  Large Data Centers


Tier Type

  Tier 1 and 2
  Tier 3
  Tier 4


Type

  Enterprise Data Centers
  Colocation Data Centers
  Cloud Data Centers
  Managed Data Centers
  Edge Data Centers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Component Insights

The IT infrastructure segment is estimated to witness significant growth during the forecast period.

The IT infrastructure of a data center encompasses all the necessary hardware, software, and solutions for establishing and expanding a data center. This infrastructure comprises server infrastructure, storage infrastr

China Data Center Cooling Market size was valued at USD 4.2 Billion in 2024 and is projected to reach USD 9.90 Billion by 2032, growing at a CAGR of 11.32% from 2025 to 2032.

China Data Center Cooling Market: Definition/ Overview

Data center cooling refers to the methods and technologies used to control temperature and airflow within data centers, maintaining peak performance and keeping servers and IT equipment from overheating. It is commonly used in hyperscale, enterprise, and colocation data centers to support industries including as information technology, cloud computing, telecommunications, finance, and healthcare. The future of data center cooling is centered on energy efficiency and sustainability, with innovations such as liquid cooling, immersion cooling, and AI-powered cooling optimization gaining traction. Edge computing and green data centers are becoming increasingly popular, expanding their worldwide growth potential.

In the China Data Center market at present, GLP Changshu Southeast Data Center, a brand new data center campus located in Changshu High-tech Industrial Development Zone – one of China's top development zones – in Jiangsu Province, has finished the first phase of development.

The China Data Center Server Market is Segmented by Form Factor (Blade Server, Rack Server, and Tower Server), by End User (IT and Telecommunication, BFSI, Government, Media and Entertainment, and Other End Users). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

China and Hong Kong data center market is growing at a CAGR of over 3% during the forecast period. The report provides discusses china data center market growth, forecast, dynamics, trends, and opportunities.

The revenue in the data center market in China was forecast to continuously increase between 2024 and 2029 by in total 51.3 billion U.S. dollars (+53.58 percent). After the seventh consecutive increasing year, the indicator is estimated to reach 147.07 billion U.S. dollars and therefore a new peak in 2029. Find further information concerning the revenue in the 'Servers' segment of the data center market in Ireland and the revenue in the data center market in Honduras. The Statista Market Insights cover a broad range of additional markets.