China Data Center Market

China Data Center Market Overview:

The China data center market size reached USD 35,210.01 Million in 2024. The market is projected to reach USD 79,950.43 Million by 2033, exhibiting a growth rate (CAGR) of 9.54% during 2025-2033. The data center market growth is driven by a strong focus on green energy and sustainability and technological advancements enhancing efficiency and scalability. The acceleration of digital transformation and industrial modernization supported by government initiatives are further influencing the China data center market share.

China Data Center Market Trends:

Green Energy Policies and Sustainability Goals

China's dedication to environmental sustainability and the shift towards a low-carbon economy are influencing the design and functioning of data centers. Due to national goals aimed at lowering carbon emissions and enhancing energy efficiency, data center operators are progressively obliged to implement eco-friendly technologies and practices. The incorporation of renewable energy sources, efficient cooling systems, and eco-friendly architectural designs is changing the construction and management of data centers. For example, in 2024, Tencent launched a renewable-powered microgrid project at a data center in Huailai County, Hebei Province, China. The project, with a total capacity of 10.99MW, integrated wind, solar, and battery energy storage, marking China's first fully integrated microgrid of its kind. Tencent aimed for carbon neutrality by 2030 and uses renewable energy for over 50% of its data center electricity needs. Moreover, companies are progressively assessing the carbon impact of their digital systems, leading to a rise in the need for sustainable data center solutions. As a result, sustainability serves not just as a regulatory obligation but also as a market differentiator that draws in eco-aware clients and investors.

Technological Advancements and Infrastructure Innovation

Improvements in server technology, cooling methods, energy efficiency, and high-density computing are greatly boosting the performance and sustainability of data center operations. These advancements enable data centers to process greater amounts of data more effectively while minimizing their ecological footprint. The advancement of state-of-the-art network infrastructure, featuring the installation of sophisticated fiber-optic systems and next-gen communication standards, are resulting in significant enhancements in bandwidth and reduced latency. These enhancements are vital for allowing data-heavy applications, like artificial intelligence (AI), machine learning (ML), and big data analysis, to operate smoothly. Furthermore, the emergence of intelligent data center management systems, powered by automation and ML, are transforming operational workflows, facilitating predictive maintenance, immediate monitoring, and resource efficiency. These developments lower total ownership expenses while delivering scalable and resilient infrastructure that can accommodate new technologies such as edge computing, the Internet of Things (IoT), and blockchain. As the demand for high-performance computing increases, integrating these advanced technologies into data center design and management ensures that the infrastructure remains flexible, adaptable, and capable of meeting future demands, further impelling the China data center market growth.

Digital Transformation and Industrial Modernization

With the growing use of cloud computing, AI, and big data analytics by businesses and public organizations, there is a rise in the need for strong, scalable, and high-performance infrastructure for data storage and processing. The modernization of conventional industries, aided by digital tools and automation technologies, requires dependable data centers to manage extensive volumes of real-time data. The government's backing of smart manufacturing, fintech, and e-governance projects is catalyzing the demand for secure and effective data management abilities. With these trends ongoing, data centers act as the essential infrastructure that facilitates smooth digital processes, positioning their growth as a vital aspect of China's comprehensive industrial and economic modernization plan. In 2024, China announced plans to pilot the opening-up of internet data centers as part of its broader strategy to boost reform and foreign investment. The Ministry of Industry and Information Technology (MIIT) aimed to integrate advanced infrastructure like 5G and computing power to enhance AI and big data capabilities. This move aligned with efforts to expand China's digital economy and global tech influence.

China Data Center Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on component, type, enterprise size, and end user.

Component Insights:

• Solution
• Services

A detailed breakup and analysis of the market based on component have also been provided in the report. This includes solution and services.

Type Insights:

• Colocation
• Hyperscale
• Edge
• Others

The report has provided a detailed breakup and analysis of the market based on type. This includes colocation, hyperscale, edge, and others.

Enterprise Size Insights:

• Large Enterprises
• Small and Medium Enterprises

A detailed breakup and analysis of the market based on enterprise size have also been provided in the report. This includes large enterprises and small and medium enterprises.

End User Insights:

• BFSI
• IT and Telecom
• Government
• Energy and Utilities
• Others

The report has provided a detailed breakup and analysis of the market based on end user. This includes BFSI, IT and telecom, government, energy and utilities, and others.

Regional Insights:

• North China
• East China
• South Central China
• Southwest China
• Northwest China
• Northeast China

The report has also provided a comprehensive analysis of all the major regional markets, which include North China, East China, South Central China, Southwest China, Northwest China, and Northeast China.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

China Data Center Market News:

• September 2025: China Unicom launched a US$390 million AI data center in Qinghai, powered by domestic chips from Alibaba and other local developers. The center, which provides 3,579 petaflops of computing power, supports China's push for AI and high-performance computing with local hardware. It aligns with government policies to reduce reliance on foreign chips and strengthen the domestic semiconductor sector.
• April 2025: China launched the world's first commercial AI-powered underwater data center off Hainan Province. The facility uses the ocean's natural cooling properties to reduce energy consumption, handling over 7,000 AI queries per second. This innovative project blends sustainable infrastructure with AI capabilities, offering a future-proof model for energy-efficient data processing.

China Data Center Market Report Coverage:

Key Questions Answered in This Report:

• How has the China data center market performed so far and how will it perform in the coming years?
• What is the breakup of the China data center market on the basis of component?
• What is the breakup of the China data center market on the basis of type?
• What is the breakup of the China data center market on the basis of enterprise size?
• What is the breakup of the China data center market on the basis of end user?
• What is the breakup of the China data center market on the basis of region?
• What are the various stages in the value chain of the China data center market?
• What are the key driving factors and challenges in the China data centermarket?
• What is the structure of the China data centermarket and who are the key players?
• What is the degree of competition in the China data centermarket?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the China data center market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the China data center market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the China data center industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.