DailyCoin
Published Jan 28, 2022 08:00AM ET
Updated Jan 28, 2022 08:31AM ET
China & Hong Kong Data Center Markets, 2022-2027 – Smart Cities Fuel Data Center Demand, Increased Investment in Ai-Based Applications & Rising Investment in Blockchain & Quantum Computing
China and Hong Kong data center market witnessed investments of USD 30.68 billion in 2021 and will witness investments of USD 35.11 billion by 2027, growing at a CAGR of 2.27% during 2022-2027.
The China & Hong Kong data center market is one of the most mature markets worldwide and is led by cloud, telecom services, and BFSI sectors. Most data centers in the region operate in major metros cities such as Shanghai, Beijing, and Hong Kong.
These locations have attracted considerable investments in recent years, and more data centers are planned for the forecast period. Also, high Internet penetration has accelerated the demand for hyperscale data centers with a power capacity of more than 15 MW in China & Hong Kong.
OPPORTUNITIES AND TRENDS
Sustainable initiatives in the country: The Chinese government has pledged to achieve carbon neutrality by 2060, and therefore, has invested in initiatives to minimize carbon emissions and improve air quality. In 2021, wind and solar power in China accounted for around 11% of the total power consumption, which is expected to increase to around 16.5% by 2025.
This is a huge opportunity for vendors to expand their business in the data centers market in China and Hong Kong by working in favor of sustainable initiatives. For instance, Apple (NASDAQ:AAPL), along with its suppliers in China will invest around USD 300 million in 2022 and develop projects generating around 1 GW of renewable energy in China.
5G deployment to empower the data center market: Till September 2021, 5G operators have deployed around 993,000 5G base stations in China. Around 390 million households have adopted 5G services, and the number is expected to grow during the forecast period. Thus, providing a 5G network has become a significant criterion for offering internet services. In September 2021, China Mobile (NYSE:CHL) and China Broadcasting Network (CBN), a national cable operator, partnered to deploy a 700 MHz 5G implementation plan.
In Hong Kong, SmarTone Mobile Communications entered the 5G market in 2020 with a fixed wireless network and partnered with Ericsson (BS:ERICAs) to deploy 5G in Hong Kong. The significant scope of 5G will propel the demand for edge data centers, especially in Tier II and Tier III cities in the China & Hong Kong region, and boost the internet data center market.
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