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Data Center Market in China and Hong Kong: $27 Billion Industry Outlook and Forecast 2020-2025 with COVID-19 Impact Analysis

Research and Markets
·5-min read

Dublin, Sept. 25, 2020 (GLOBE NEWSWIRE) -- The "Data Center Market in China and Hong Kong - Industry Outlook and Forecast 2020-2025" report has been added to ResearchAndMarkets.com's offering.

China and Hong Kong data center market size is expected to reach revenue of close to $27 billion by 2025, growing at a CAGR close to 2% during the forecast period. The data center market in China & Hong Kong is likely to be driven by the increase in the investment in artificial intelligence, blockchain, and quantum computing.

The market for artificial intelligence (AI) is projected to over $10 billion in 2025. In 2018, AI investments in China were around $8 billion, which is likely to increase strongly after the recovery of the economy from the COVID-19 pandemic. China is among the leader in blockchain technology.

The government announced the creation of Blockchain Network (BCN) across 100 cities, which will add developers to build an application without investing in the blockchain framework. Also, the promotion of blockchain to make a predominant technology for online payments is driving the market. Several organizations and government agencies in China currently use blockchain technology, which is expected to grow significantly over the next few years.

China and Hong Kong Data Center Market Segmentation

The China and Hong Kong data center market research report includes a detailed segmentation by IT infrastructure, electrical infrastructure, mechanical infrastructure, general construction, tier standards, and geography. The server market in China and Hong Kong is expected to witness significant growth in the next few years due to investments from major cloud service providers. Apple, Alibaba, Tencent, Baidu, and China Telecom are the major cloud service providers operators investing in the region.

Mega data center projects in China are designed to be of Tier III and Tier IV standards, with the increased deployment of 2N redundant UPS systems. The construction of data centers of over 20 MW power capacity will increase the demand for high-capacity infrastructure over 1 MW. Most facilities support rack power density of 510 kW; however, it is expected that new facilities will support a capacity of 20 kW during the forecast period.

In China and Hong Kong, the majority of data center operators are deploying UPS systems in N+N with flexible design supporting up 2N+1 redundant UPS systems. The increase in the development of hyperscale facilities will increase the UPS installation of over 1 MW capacity. Also, hyperscale operators will be involved in adopting in-rack/in-row UPS systems supporting capacity of less than 100 kVA.

In China, a majority of data centers offer colocation services adopt air as well as water-based cooling techniques. Some facilities are built to support free cooling techniques. Several service providers use energy-efficient free cooling techniques with redundant units to keep the data center operational. The adoption of CRAC units and chillers will continue to grow to cool the facility in the China data center market.

China is a leader in greenfield data center construction. Hyperscale developments are to increase the demand for engineering services in China. The construction cost of facilities can range from $50 to $80 per square, which is lower than Hong Kong, which is around $200 per square feet. In terms of physical security, most service providers prefer four layers of safety, with a few engaged in the implementation of five-layer ones due to the increasing demand for colocation services. CCTV surveillance, access control, anti-tailing doors, metal detectors, and X-ray machines are the major security measures installed in data centers.

Hong Kong is likely to have high brownfield deployments due to the space shortage. Innovations in connected security products are providing a boost for market growth. Data center operators prefer the analytics of video surveillance recording. Modern facilities are also protected from EMP and lightning during natural disasters. In the coming years, the market will witness the increased use of robot monitoring systems in the facility, with sensor and video surveillance.

Most new data centers are designed to be of Tier III standards with a minimum of N+1 redundancy and can be reconfigured with up to 2N+1 redundancy as the need arises, with the incorporation of flexible designs. Tier IV facilities are equipped with at least 2N+1 redundancy in every infrastructure that makes the facility fault-tolerant, with UPS systems and PDUs having 2N+2 redundancy.

These facilities generate more revenue for the market, with focused investment on highly efficient cooling systems. A majority of facilities developed in China and Hong Kong follow the Uptime Institute guidelines in design, construction, and operational sustainability. Expertise in designing and building facilities based on the guideline's providers by the above-mentioned regulatory body would be beneficial for local contractors.

KEY QUESTIONS ANSWERED

1. What is the China and Hong Kong data center market size and growth rate during the forecast period?
2. What are the factors impacting the growth of China and Hong Kong data center market share?
3. What are the drivers, trends, and restraints in the China and Hong Kong data center market?
4. Who are the leading infrastructure vendors, construction contractors and data center investors in the China and Hong Kong data center market?
5. What is the impact of the COVID-19 pandemic on the China and Hong Kong data center market?

Competitive Landscape

Prominent IT Infrastructure Vendors

  • HPE (H3C)

  • Cisco

  • Dell Technologies

  • Hitachi Vantara

  • Huawei

  • IBM

  • Inspur Group

  • Lenovo

  • Quanta Cloud Technology (Quanta Computer)

Prominent Construction Contractors

  • Arup Group

  • Aurecon Construction

  • AWP Architects

  • BYME Engineering

  • Chung Hing Engineers Group

  • DSCO Group

  • Faithful+Gould

  • Gammon Construction

  • ISG

  • Studio One Design Limited

  • NTT FACILITIES

Prominent Support Infrastructure Providers

  • ABB

  • Vertiv

  • Caterpillar

  • Cummins

  • Delta Group

  • Eaton

  • Schneider Electric

  • Fuji Electric

  • Hitec Power Protection

  • Mitsubishi Electric

  • Legrand Group

  • Rittal

  • MTU On Site Energy

  • AIRSYS

  • Kstar New Energy

Prominent Data Center Investors

  • Apple

  • Chayora Holdings

  • China Unicom

  • ChinData Group

  • Equinix

  • GDS Holdings

  • Global Switch

  • PT Telekomunikasi Group

  • Shanghai Athub

  • Shanghai Qnet Network Technology

  • SUNeVison

  • Tencent Holdings

  • Tenglong Holdings Group (Tamron)

For more information about this report visit https://www.researchandmarkets.com/r/kwmgkn

Research and Markets also offers Custom Research services providing focused, comprehensive and tailored research.

CONTACT: CONTACT: ResearchAndMarkets.com Laura Wood, Senior Press Manager press@researchandmarkets.com For E.S.T Office Hours Call 1-917-300-0470 For U.S./CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900