China’s data center market to grow 20 percent annually for 5 years

Report from DCD Intelligence says Beijing will lead the way as it and Shanghai overtake Hong Kong in available white space.

DCD Intelligence (Datacenter Dynamics Intelligence) sizes up China's data center market in its recent report.
DCD Intelligence (Datacenter Dynamics Intelligence) sizes up China's data center market in its recent report.

The report “China Data Center Market Trends 2012-2013,” recently released by DatacenterDyamics’ research division DCD Intelligence, predicts the Chinese data centermarket will grow at a 20-percent compound annual growth rate for the next five years.

“Beijing has witnessed a 45-percent growth in ‘end-user white space’ in data centers during the period 2011-2012, compared to a lower but still highly significant growth rate of 29.3 percent across the whole of China,” DCD Intelligence said when announcing the report’s availability.

Beijing, it further explained, currently accounts for both the largest amount of end-user-operated data center white space in China and the greatest amount of investment.

DCD Intelligence’s managing director Nicola Hayes said, “Although Hong Kong is the most-developed data center market in China, Beijing and Shanghai are rapidly establishing themselves as data center hubs. Both cities have overtaken Hong Kong in total available white space.”

The report also estimates that total investment in the China data center market over the past 12 months was US$5.9B and forecasts that the total will increase to US$7.5B from 2012 to 2013.

The report also includes these key findings.

  • More than 25 percent of data center infrastructure in China is currently outsourced.
  • Power consumption is on the increase with a total consumption of 3.8GW forecast for the end-user data center market by 2015.
  • More than half of data center end users have invested in virtualization implementation over the past 12 months.
  • Cloud uptake is expected to show nearly 30-percent growth over the next 12 months.

More information on the report is available here.

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