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Up 45 Per Cent, Beijing Leads as China Data Center Market Is Forecast to Grow 20 Per Cent Year on Year for Next Five Years

A new analyst report ‘China Data Center Market Trends 2012 – 2013’ just released by DCD Intelligence, the research division of DatacenterDynamics, predicts that the Chinese data center market is forecast to grow at a 20 per cent compound annual growth rate (CAGR) for the next five years.

Beijing has witnessed a 45% growth in ‘end user white space’ in data centers during the period 2011-12 compared to a lower but still highly significant growth rate of 29.3% across the whole of China.

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

Launching the new report Nicola Hayes managing director of DCD Intelligence 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 terms of total available white space.

The ‘China Data Center Market Trends 2012 – 2013’ report also estimates that total investment in the China data center market over the past 12 months was US$ 5.9bn and forecasts that this will increase to US$ 7.5bn from 2012 to 2013.

Investment in the Beijing data center market 2011-2012 accounted for 32% of the overall figure.

Other key findings from the report include:

  • Over a quarter 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.
  • Over 50 per cent of data center end users have invested in virtualization implementation over the past 12 months
  • Cloud uptake is expected to show upwards of 30 per cent growth over the next 12 months.

This report is part of the DCD Intelligence ‘Data Center Trends 2012 – 2013’ series. Other reports include regional reports on Latin America, Asia Pacific, North America, Western Europe, Eastern Europe Middle East and Africa as well as individual country reports on China and the UK.

For further information about DCD Intelligence or to purchase the report please visit www.dcd-intelligence.com

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