China Data Center Market (2025-2031) | Growth, Value, Size, Companies, Outlook, Trends, Forecast, Industry, Revenue, Share & Analysis

According to 6Wresearch internal database and industry insights, China Data Center Market is projected to grow at a Compound Annual Growth Rate of 11.3% from 2025 to 2031.

China Data Center Market Highlights

Topics Covered in the China Data Center Market Report

The China Data Center Market report thoroughly covers the market by component, and vertical. The market report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas, and market drivers which would help stakeholders to devise and align their market strategies according to the current and future market dynamics.

China Data Center Market Synopsis

The market is witnessing Continuous growth in the China Data Center Market is being driven by fast-paced digitalization, expanding 5G networks, and rising reliance on cloud services. Rising internet access, expanding e-commerce, and supportive government infrastructure initiatives are fueling market revenue. Several players including Alibaba Cloud, Tencent Cloud, and Huawei Cloud are accelerating ecosystem growth. Moreover, integration of AI, IoT, and big data technologies is enhancing scalability, energy efficiency, and operational performance, consolidating China position as a important player in global data center markets.

China Data Center Market is projected to grow at a CAGR of 11.3% during 2025–2031. The China Data Center Market Growth is being propelled by widespread cloud adoption, 5G development, and growing demand for digital services in IT, telecom, and BFSI. Government-backed initiatives like the New Infrastructure Policy and Eastern Data, Western Computing Project are encouraging large-scale, sustainable data center investments. The growing integration of AI, IoT, and big data is boosting demand for high-density facilities. Nevertheless, the rapid expansion of e-commerce and the broader digital economy is positioning China as a global leader in data infrastructure.

China Data Center Market Challenges

Although the China Data Centre Industry has seen rapid growth, the industry faces several challenges, including high energy consumption, environmental challenges, and higher operating costs. Regulatory restrictions on cross-border data flows create barriers to the entry of multinational cloud to the industry. The limited availability of highly skilled IT professionals, coupled with complex compliance standards for cybersecurity, add barriers to the entry of new industry entrants. Rising land price acquisition costs in first-tier cities such as Beijing and Shanghai continue to inhibit the growth of industry.

China Data Center Market Trends

The industry is experiencing notable trends such as the adoption of green and energy-efficient data centers powered by renewable sources. Hyperscale expansion by cloud service providers is driving market share, with modular and edge data centers gaining popularity. The use of AI-driven cooling systems and automation technologies is improving operational efficiency. Partnerships between global firms and Chinese technology companies are expanding infrastructure capacity. Furthermore, the government’s emphasis on digital sovereignty is accelerating demand for secure, localized data storage solutions.

Investment Opportunities in the China Data Center Industry

The China Data Center Industry offers several investment potentials in hyperscale facilities, modular data center deployments and renewable-powered infrastructure. The rising demand from the IT & telecom and BFSI sectors is creating new revenue streams. Startups building application-driven monitoring solutions, advanced smart cooling systems or focused on cybersecurity solutions are attracting venture capital and private equity investment firms. Government initiatives such as the New Infrastructure Policy along with the Eastern Data, Western Computing Project are pushing stakeholders in policy and using technology providers, utility companies, and global investors to coordinate and accelerate the provision of technology in China's data center's ecosystem.

Leading Players of the China Data Center Market

The Market is competitive, led by Alibaba Cloud, Tencent Cloud, Huawei, China Telecom, China Unicom, and GDS Holdings. These companies dominate China Data Center Market Share through infrastructure, innovation, and investments. Regional providers expand in Tier 2 and Tier 3 cities, while global partnerships reshape the industry landscape.

Government Regulations Introduced in the China Data Center Market

According to Chinese Government data, The Chinese government is actively promoting sustainable and secure digital infrastructure. The New Infrastructure Policy emphasizes large-scale investment in data centers, 5G, and AI to support the digital economy. The Cybersecurity Law of China enforces strict compliance for data security and cross-border data transfers. Additionally, the Eastern Data, Western Computing Project promotes relocation of data centers to energy-efficient western provinces, reducing pressure on eastern hubs. These regulations aim to balance industry growth, environmental sustainability, and data sovereignty.

Future Insights of the China Data Center Market

The China Data Centre Market is set for surge in demand, as well as rise in expansion for new Data Centers as the need for cloud computing increase, along with AI and big data applications. The rapid rollout of 5G and IoT is creating unprecedented amounts of data that liberate and facilitate users in unprecedented ways. China will continue to need scalable infrastructure to deal with this expansion; therefore, we will likely see numerous developments within the sector, such as the emergence of green energy-powered hyperscale data centers, an increase in edge computing use in remote areas, and more competent security systems via blockchain.

Market Segmentation Analysis

The report offers a comprehensive study of the subsequent market segments and their leading categories.

Electrical Systems to Dominate the Market – By Component

According to Ritika Kalra, Senior Research Analyst at 6Wresearch, Electrical systems dominate the China Data Center Market due to high power demand for servers, cooling, and networking equipment. Investments in UPS, generators, and renewable-powered energy infrastructure are growing rapidly. Mechanical and networking components also hold significant market share, but electrical systems remain the largest contributor to overall revenue.

IT & Telecom to Dominate the Market – By Vertical

The IT & Telecom sector dominates the China Data Center Industry, driven by rising demand for cloud services, video streaming, and 5G connectivity. Leading technology companies such as Alibaba, Tencent, and Huawei are major consumers of large-scale data centers. BFSI also holds a growing share as financial institutions increasingly adopt cloud-based and AI-driven platforms.

Key Attractiveness of the Report

• 10 Years of Market Numbers.
• Historical Data Starting from 2021 to 2024.
• Base Year: 2024.
• Forecast Data until 2031.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• China Data Center Market Outlook
• Market Size of China Data Center Market, 2024
• Forecast of China Data Center Market, 2031
• Historical Data and Forecast of China Data Center Revenues & Volume for the Period 2021 - 2031
• China Data Center Market Trend Evolution
• China Data Center Market Drivers and Challenges
• China Data Center Price Trends
• China Data Center Porter's Five Forces
• China Data Center Industry Life Cycle
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Component for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Electrical for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Mechanical for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Networking for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Racks for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Security Systems for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Fire Systems for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Vertical for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Banking Financial Services & Insurance (BFSI) for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Government for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By IT & Telecom for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Media for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Retail for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Manufacturing for the Period 2021 - 2031
• Historical Data and Forecast of China Data Center Market Revenues & Volume By Others for the Period 2021 - 2031
• China Data Center Import Export Trade Statistics
• Market Opportunity Assessment By Component
• Market Opportunity Assessment By Vertical
• China Data Center Top Companies Market Share
• China Data Center Competitive Benchmarking By Technical and Operational Parameters
• China Data Center Company Profiles
• China Data Center Key Strategic Recommendations

Market Covered

The market report provides a detailed analysis of the following market segments:

By Component

• Electrical
• Mechanical
• Networking
• Racks
• Security Systems
• Fire Systems

By Vertical

• Banking Financial Services & Insurance (BFSI)
• Government
• IT & Telecom
• Media
• Retail
• Manufacturing
• Others