Chinese data centre market expected to reach $36.18 billion by 2026

Currently valued at $13.01 billion, the Chinese data centre market is expected to experience remarkable growth through 2026, almost tripling to $36.18 billion. According to a recent market study, the data centre market in China and Hong Kong could register a CAGR of 19.2% over the next five years.

Several factors are driving this phenomenal growth. The emergence of 5G is improving connectivity for edge data centres, which will have a positive impact on growth and investment of data centres at the edge. Recently, the Chinese government announced that they had constructed the world’s largest 5G mobile network, with 260 million high-speed mobile connections. 5G is expected to change digital consumption, work habits and social life, entertainment, health care and public services.

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China has also become one of the leaders in supercomputing, reaching the number one spot on an international list of Top500 supercomputers. Of the 500, 186 are located in China. And three Chinese firms (Lenovo, Inspur, and Sugon) were responsible for over half of the global supercomputer installs, at 281 of 500. Demand for supercomputing volume is expected to continue to boost the overall data economy in China and the data centre market specifically.

The forecast also includes the growth of connected devices in China, which is expected to triple by 2026. This, in addition to increased interest in smart city and IoT applications, will impact demand for data centre services as well as expectations for speed and latency.

At the same time, improved access to renewable power and innovations in power usage efficiency will reduce power costs and mitigate the environmental impact of data centres. Lower costs will not only make an investment in data centres more attractive, but it will also allow owners and operators to channel resources more effectively to further innovation. Additionally, a lower environmental impact will help to gain support from the government, in alignment with their green initiatives.