Industry Analysis: China’s Increasing Data Center Market
2/7/2017, according to the survey report of Technavio, a market research institute, the data center market in China is expected to grow exponentially in the future, and will achieve impressive growth in the next four years, with an average compound annual growth rate of nearly 13%. In addition, it is expected that the market demand for public cloud storage will continue to grow, which will also promote the expansion of China’s data center market scale.
As the largest market in the world, China telecom market is undergoing rapid transformation. With the scale growth and innovation of the telecommunication industry, the telecommunication industry will become the key to the sustained growth of the national economy. China has nearly 1.3 billion mobile phone holders and 700 million Internet users, and is the largest digital market.
China has made great progress in becoming an advanced telecommunications market. Recently, a two-year project has been completed to increase the number of national Internet centers from three to ten, and the speed of the Internet has doubled. Meanwhile, the Chinese government has taken measures to open up the telecommunications industry to private companies and support the development of the Internet of Things (IoT) to promote economic growth. In fact, China already has the world’s largest machine-to-machine (M2M) market.
Although there are still many aspects to be expanded and improved, China has been able to build a huge national telecommunications infrastructure, has established the world’s largest next generation network (NGN), IPv6-based China Telecom Next Generation Network (CN2), and is rapidly increasing its broadband deployment. China’s major operators actively embrace intellectual property rights and have been committed to building infrastructure to support a wide range of intellectual property services. With its huge fixed and mobile user base, it is not surprising that China has the largest number of VoIP users in the world.
Expanding Data Center Size
According to a study conducted by the U.S. Department of Energy three years ago, China’s data center market is five percent of the global data center market, worth $24 billion. The study also shows that China’s data center market is growing by 20% annually, accounting for about 7% of the total investment in global data center business. Shanghai, Shenzhen and Hong Kong have the largest number of data centers and total building area, but Beijing’s data center market growth rate is almost double that of these cities. Data centers in second-and third-tier cities have also developed to some extent.
Don’t miss the opportunity .
To be sure, the size of China’s data center market is well known and recognized by most international participants. However, opportunities related to the innovation and adaptive culture of Chinese enterprises are often overlooked. China has made some achievements in the development of products and services in the fields of electricity, telecommunications and technology, which provides users with new choices to transform more traditional and traditional data center environments.
Nevertheless, there is still a need for a sound liaison measure to enable international companies to successfully enter the growing Chinese data center industry. Such data center providers will ensure reliable operation of their business, help overcome obstacles, and acquire the necessary infrastructure to provide faster speed and higher reliability.
In China, a good understanding of local regulations, laws and policies and the integration of international standards are essential, but the tendency to compromise may be a very unwise decision. The strategies and measures implemented need professional developers and operators to bridge the knowledge gap.