Latest News- Data Center Market in China: IT infrastructure is expected to lead the Component segment during 2025-2029

The Data Center Market in China is being driven by Rising demand for hyper-converged data centers

The Data Center Market in China is expected to grow at a CAGR of 38.3% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 274.39 billion. In the dynamic data center market of China, the escalating demand for cloud computing, artificial intelligence (AI), machine learning, and Internet of Things (IoT) workloads is leading to a significant increase in power consumption. With server estates expanding yearly, data centers are seeking effective solutions to optimize server utilization rates and subsequently decrease energy consumption. One such approach is server disaggregation, which enables the decoupling of compute and network resources, thereby increasing server efficiency and reducing power requirements. This strategy is crucial for data centers to maintain competitiveness and sustainability in the face of growing energy demands. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Component
  • IT infrastructure
  • Power management
  • Mechanical construction
  • General construction
  • Others
• End-user
  • BFSI
  • Telecom and IT
  • Government
  • Energy and utilities
  • Others
• Geography
  • China

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Rising demand for hyper-converged data centers
• Growing need for cloud storage
• Increasing demand for supercomputing

However, the market also witnesses some limitations, which are as follows:

• Growing focus on consolidating data centers
• Increasing carbon emissions
• High power consumption of data centers

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Market Scope in Data Center Market in China Research Report

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Research Analysis Overview

The Data Center Market in China is experiencing significant growth due to the increasing demand for digital services, larger data storage needs, and regulatory requirements. With an expanding user base and the need for business scalability, data centers in China are prioritizing storage capacity, efficient infrastructure, and computing power. Green data centers are becoming a focus, with renewable energy sources such as hydroelectric electricity and energy-efficient solutions being adopted. The rollout of 5G networks and edge computing services, along with micro data centers and cloud services, are catering to the needs of large enterprises. Hyper scalability, modern business processes, advanced technologies like Artificial Intelligence and Machine Learning, and cloud computing are key drivers in this market.

Market Research Overview

The Data Center Market in China is a significant segment of the global Internet Services and Infrastructure industry. This market caters to the increasing demand for digital services, driven by expanding user bases and business scalability. Regulatory requirements necessitate robust and efficient infrastructure, ensuring data security and storage capacity. Green data centers, utilizing renewable energy sources such as hydroelectric electricity and energy-efficient solutions, are increasingly popular. The advent of 5G networks enhances data transmission speeds and the adoption of edge computing services further expands market opportunities. Companies in this market offer a range of services, including data storage, computing power, and IT security, as well as infrastructure solutions for data centers and cloud networking and storage. Technavio projects the global Internet Services and Infrastructure market, including the Data Center Market in China, to grow steadily due to these factors.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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