As per MRFR analysis, the China Data Center Infrastructure Market Size was estimated at 24.6 (USD Billion) in 2024.
The China Data Center Infrastructure Market Industry is expected to grow from 26.84(USD Billion) in 2025 to 55 (USD Billion) by 2035. The China Data Center Infrastructure Market CAGR (growth rate) is expected to be around 6.74% during the forecast period (2025 - 2035).
The China Data Center Infrastructure Market is experiencing significant growth driven by the increasing demand for cloud services and digital transformation initiatives across various sectors, including finance, retail, and healthcare. The government's commitment to advancing digital infrastructure through policy support, such as the "New Infrastructure" initiative, is a key market driver that encourages investments and the establishment of data centers nationwide. Additionally, the rise in big data analytics and the Internet of Things (IoT) further amplifies the increasing need for robust data center infrastructures to support data processing and storage capabilities.
There are ample opportunities to be explored in China, particularly in the areas of energy efficiency and sustainable operations. With growing concerns over energy consumption and environmental impact, the industry is focusing on green data center practices to reduce carbon footprints. This trend aligns with China's goals for carbon neutrality and presents significant opportunities for companies that can innovate in designing and implementing energy-efficient data center solutions. In recent times, there has been a clear trend toward the adoption of hyper-converged infrastructure and modular data centers in China. These approaches allow for faster deployment, scalability, and flexibility, catering to the rapid expansion of digital services.
The demand for edge computing is also on the rise as enterprises require localized data processing to improve latency and performance. Additionally, as more local and international players enter the market, there is a push towards adopting cutting-edge technologies, including artificial intelligence and machine learning, to optimize data management and operational efficiency in Chinese data centers. This dynamic landscape sets the stage for continuous evolution and opportunity in China's data center infrastructure sector.
Fig 1: China Data Center Infrastructure Overview
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The shift towards digital transformation and cloud computing is a significant driver for the China Data Center Infrastructure Market Industry. The Chinese cloud computing market has been growing rapidly, with reports indicating a compound annual growth rate (CAGR) of over 30% from 2020 to 2025. This is supported by the government's push in the 14th Five-Year Plan, which emphasizes the expansion of cloud services, encouraging more enterprises to migrate to cloud-based infrastructures.
Major players like Alibaba Cloud and Tencent Cloud are leading this transition by investing heavily in data centers across the country to meet increasing demands. This trend is reinforced by a growing number of businesses adopting cloud technologies, which is projected to continue fueling data center infrastructure investments in China.
The Chinese government's initiatives to enhance the digital economy are key drivers for the China Data Center Infrastructure Market Industry. The implementation of policies aimed at promoting the digital economy has resulted in substantial increases in infrastructure investments. For instance, China's Digital Economy White Paper reported that the digital economy contributed to 36.2% of the GDP in 2021 and is expected to keep rising. The government is expected to allocate resources to support the establishment of data centers as part of national initiatives, driving demand for data center infrastructure.
Organizations such as the Ministry of Industry and Information Technology (MIIT) are actively involved in fostering growth in this area, further solidifying the market landscape.
The rapid proliferation of the Internet of Things (IoT) devices and the increasing reliance on big data analytics presents significant growth prospects for the China Data Center Infrastructure Market Industry. Reports suggest that the IoT adoption rate will reach upwards of 90% by 2025 in China, translating into millions of connected devices that require robust data management and processing capabilities. Major tech companies such as Huawei and Baidu are investing heavily in infrastructure to support this anticipated growth.
Additionally, the National Bureau of Statistics of China has indicated that big data has become a crucial factor in decision-making for both enterprises and the government, further emphasizing the need for advanced data centers to process massive volumes of information efficiently.
The Components segment of the China Data Center Infrastructure Market plays a vital role in the broader scope of data center operations, which is crucial in supporting the rapid digital transformation witnessed across various sectors in the country. This segment is typically categorized into Hardware, Software, and Services, each contributing distinct yet interrelated functionalities that enhance the overall data center efficiency and performance. Hardware serves as the backbone, encompassing servers, storage devices, and networking equipment that are essential for processing and managing vast amounts of data.
With the surge in big data and cloud computing, reliable hardware solutions have become indispensable for data centers aiming to optimize their operations. Software is significant in managing these hardware components, facilitating smooth operations through advanced monitoring, security, and virtualization tools. Moreover, with the growth of artificial intelligence and machine learning applications in China, the need for sophisticated software solutions that can effectively manage complex data processes and analytics is on the rise. Services, encompassing consulting, maintenance, and support, are critical as they ensure that the hardware and software components function seamlessly over time.
In China, the demand for outsourcing services is growing, allowing data center operators to focus on their core business activities while relying on experts to manage their infrastructure effectively. This segmentation demonstrates a holistic view of the components necessary for a high-functioning data center. As the China Data Center Infrastructure Market continues to evolve, focusing on Componentsnamely Hardware, Software, and services, will be key in meeting the increasing data demands and ensuring robust, secure, and efficient data management systems.
The ongoing investments by the Chinese government in digital infrastructure also highlight the significant implications of this segment in driving forward the country’s ambitions in the digital economy. Additionally, as the market experiences shifts due to emerging technologies such as edge computing and 5G, the flexibility and adaptability of hardware, software, and service offerings are expected to further enhance their roles, promoting growth opportunities and innovation within the Components segment of the China Data Center Infrastructure Market.
As the industry seeks to balance energy efficiency with performance, the emphasis on sustainable and scalable solutions within this segment underscores its potential for long-term growth and stability in an increasingly competitive landscape. Thus, understanding the dynamics of the Components segment is essential for stakeholders looking to navigate the complexities and opportunities within the rapidly expanding China Data Center Infrastructure Market.
Fig 2: China Data Center Infrastructure Insights
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The China Data Center Infrastructure Market demonstrates significant growth across various User Types, with both Small Medium-Sized Enterprises and Large-Scale Enterprises playing pivotal roles in its expansion. Small, Medium-Sized Enterprises are increasingly leveraging data center infrastructures to enhance operational efficiency, driving adoption of cloud-based services and scalable solutions suited to their dynamic needs. On the other hand, Large-Scale Enterprises dominate the market due to their extensive data processing requirements, leading to substantial investments in robust infrastructure to sustain their operations and support data-driven decision-making.
As digital transformation accelerates across industries in China, the demand for data center solutions is expected to grow, influenced by factors such as technological advancements, rising data volumes, and emphasis on data security. The competitive landscape points to opportunities in optimizing performance and reliability across both segments, while challenges such as high setup costs and regulatory compliance persist. Overall, the segmentation of the China Data Center Infrastructure Market effectively highlights the diverse needs and contributions of each User Type, shaping the industry's trajectory toward the future.
The deployment segment of the China Data Center Infrastructure Market has shown significant trends in recent years, with both On-cloud and On-premises solutions gaining traction among businesses. The rapid digitalization in China has driven the demand for efficient deployments, enhancing operational flexibility and scalability. On-cloud solutions offer companies the benefits of reduced capital expenditure and enhanced resource utilization, appealing to a variety of industries looking to innovate and adapt quickly to market changes. Meanwhile, On-premises deployments continue to hold their ground, particularly among enterprises that prioritize data security and regulatory compliance.
This segment is further supported by government initiatives aimed at promoting cloud computing and data center development in China. As companies increasingly seek to streamline their infrastructure while managing vast amounts of data, the deployment landscape continues to evolve, highlighting the growing importance of tailored solutions in the overall China Data Center Infrastructure Market industry. These dynamics create numerous opportunities for growth and collaboration, contributing to the broader market statistics that indicate a steady upward trajectory.
The End User segment of the China Data Center Infrastructure Market plays a vital role in the market's expansion, reflecting a diverse array of industries, including BFSI, IT Telecom, Retail, and Healthcare. The BFSI sector is particularly significant, as financial institutions increasingly rely on data centers to handle extensive transactional data and maintain security, thus driving the demand for robust infrastructure. IT Telecom demonstrates rapid growth, fueled by the push for advanced connectivity and cloud services essential for supporting high-volume data traffic.
Retail is also an emerging segment, benefiting from data analytics to enhance customer experiences, thereby necessitating effective data management solutions. In the Healthcare sector, the shift towards digital health solutions and electronic records management amplifies the need for reliable data center infrastructure, ensuring data integrity and compliance with regulations. Overall, the China Data Center Infrastructure Market revenue is notably influenced by these sectors, underscoring the substantial role of diverse end users in shaping the industry's growth dynamics.
As each sector evolves, the opportunities for innovation and infrastructure enhancement become more pronounced, creating a fertile landscape for continued market development in the region.
The China Data Center Infrastructure Market is characterized by rapid growth driven by the increasing demand for data storage, cloud services, and digital transformation across various sectors. Companies operating in this market are actively competing to offer comprehensive solutions that address the diverse needs of enterprises, including reliability, scalability, and cost-effectiveness. The competition is not only between domestic players but also with international firms seeking to establish a foothold in this lucrative market. Technological advancements and government initiatives aimed at fostering innovation play a crucial role in shaping the competitive landscape. Moreover, as businesses turn towards migration to cloud platforms, data centers are becoming essential infrastructures that provide the backbone for enterprise operations. The competition extends to innovations in networking, security, energy efficiency, and the integration of emerging technologies like artificial intelligence and machine learning.
Alibaba Cloud stands out as a prominent player in the China Data Center Infrastructure Market, leveraging its extensive technology ecosystem and infrastructure capabilities. The company boasts a significant market presence, offering a robust suite of cloud computing services that cater to both small businesses and large enterprises. Alibaba Cloud's strengths lie in its ability to scale solutions quickly and efficiently while maintaining a high level of security and compliance with local regulations. The company's vast network of data centers across China ensures low latency and high availability for its clients, making it the preferred choice for many businesses looking to enhance their digital operations. With consistent investments in RD, Alibaba Cloud continuously introduces innovative services that further solidify its competitive position in the market, responding adeptly to evolving customer needs and industry trends.
Kingsoft Cloud is gaining traction in the China Data Center Infrastructure Market with a focus on providing cloud services and solutions tailored to local enterprises. The company has established a strong market presence, primarily through its suite of products that include cloud storage, cloud hosting, and big data analytics. Kingsoft Cloud capitalizes on its competitive advantages, such as agile response to customer demands, localized service offerings, and strategic partnerships that enhance its product capabilities. The company has actively pursued mergers and acquisitions to expand its technology portfolio and increase its operational capacity. By integrating various technologies and services, Kingsoft Cloud aims to deliver comprehensive solutions that meet the growing demands of data-driven businesses in China. Its strengths in customer service and innovative deployment strategies have positioned Kingsoft Cloud as a viable contender in the competitive landscape of the data center infrastructure market in China.
Alibaba Cloud
Kingsoft Cloud
Lenovo
Inspur
Ehualu
China Mobile
JD Cloud
Sungrow
China Telecom
Tencent
Baidu
China Unicom
Digital China
ZTE
Huawei
In recent months, the China Data Center Infrastructure Market has seen notable developments, particularly with significant investments and expansions. In September 2023, Alibaba Cloud announced plans to enhance its data center capabilities in Shanghai, focusing on AI and cloud service integration to support growing demand from enterprise clients. Concurrently, Kingsoft Cloud has expanded its infrastructure in the Jiangsu province, leveraging advancements in energy-efficient technologies to optimize operational costs amidst increasing energy regulations from the Chinese government.
On the merger and acquisition front, Tencent's acquisition of certain assets from a regional data center operator in August 2023 reflects its strategy to strengthen its cloud services. Additionally, digital transformation initiatives have prompted companies like Huawei and Lenovo to invest in green energy solutions, aligning with China's carbon neutrality goals set for 2060. Over the past few years, partnerships among firms such as China Telecom and Digital China in deploying 5G technology have further propelled the scalability and efficiency of data center services throughout the nation, while government-backed initiatives continue to drive the growth of infrastructure in tier-2 cities, fostering a more equitable distribution of data center capabilities across China.
Hardware
Software
Service
Small Medium-Sized Enterprises
Large-Scale Enterprises
On-cloud
On-premises
BFSI
IT Telecom
Retail
Healthcare
| Report Attribute/Metric | Details |
| Market Size 2024 | 24.6(USD Billion) |
| Market Size 2025 | 26.84(USD Billion) |
| Market Size 2035 | 55.0(USD Billion) |
| Compound Annual Growth Rate (CAGR) | 6.74% (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 | Alibaba Cloud, Kingsoft Cloud, Lenovo, Inspur, Ehualu, China Mobile, JD Cloud, Sungrow, China Telecom, Tencent, Baidu, China Unicom, Digital China, ZTE, Huawei |
| Segments Covered | Components, User Type, Deployment, End User |
| Key Market Opportunities | Cloud computing expansion, Renewable energy integration, Edge computing demand, AI and machine learning integration, Increased regulatory support |
| Key Market Dynamics | cloud computing growth, energy efficiency demands, government regulations impact, increasing data consumption, technological advancements |
| Countries Covered | China |
Frequently Asked Questions (FAQ) :
The China Data Center Infrastructure Market is expected to be valued at 26.84 USD Billion in 2024.
By 2035, the market is expected to reach a valuation of 55.0 USD Billion.
The expected CAGR for the China Data Center Infrastructure Market is 6.74% from 2025 to 2035.
The hardware segment of the market is valued at 10.0 USD Billion in 2024.
The software segment is projected to reach 16.5 USD Billion by 2035.
The services segment is valued at 8.84 USD Billion in 2024.
Major players include Alibaba Cloud, Tencent, and Huawei, among others.
Key trends include increasing cloud adoption and demand for high-performance computing.
Regional factors could drive growth due to increasing digital transformation across various sectors.
Major applications driving demand include cloud services, big data analytics, and IoT deployments.
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