looking beyond covid-19: data centres – rack space to further expand inchina
apr 21, 2020
shanghai, 21 april, 2020 —— cushman & wakefield, a leadingglobal real estate services firm, recently released the report -looking beyondcovid-19: data centres – rack space to further expand in china. according tothe report, in china, given the proliferation of the mobile network,the internet of things (iot), the cloud, mobile devices, big data, virtualreality (vr), artificial intelligence (ai) and other emerging technologies, theinternet data centre (idc) market in the country has steadily grown over recentyears. according to the ‘2019-2020 china internet data centre industrydevelopment research report’ recently released by kezhi consulting,the scale of china's idc business market reached rmb 156.25 billion in2019, an increase of 27.2% year-on-year (y-o-y) – equating, in total valueterms, to a rise of rmb 30 billion on 2018.
china idc market size(rmb billion) and growth rate (%) (2014-2019)
source: kezhiconsulting, cushman & wakefield research
whenconsidering hyperscale idcs, (facilities owned and operated by thecompanies they support, which provide robust, scalable applications and storageportfolio of services to individuals or businesses), according to synergyresearch group, with a 10% share of the number of these centres globally, chinacurrently ranks number two behind the u.s.
froma provincial perspective, according to the qianzhan institute of industrialresearch, in 2018, guangdong had the highest share of large-scale idcs inchina, commanding 20.8% of the market. guangdong was followed by shanghai andbeijing, which had total market shares of 12.8 % and 9.6%, respectively in2018. in all three locations, idc rental prices are also some of the highest inchina.
large-scale idc distributionin china by province (2018)
source: qianzhaninstitute of industrial research, cushman & wakefield
techgiants clearly recognise the current and future idc market growth in china. idcrack space demand has been increasing considerably in the country for some timeand it is the cloud sector which is now drawing much attention. additionally,much demand has also been generated from internet companies and applicationdevelopers, such as ecommerce players, multimedia content providers, digital paymentcompanies and location-based service application developers.
atthe beginning of the covid-19 outbreak in china and during the home confinementperiod, the internet was used to a greater degree than before. millions ofpeople in the country worked from home, conducted meetings, training sessionsand webinars online, ordered goods, products and services online and in theirleisure time, played online games and/or watched films online. what’s more,children were not able to physically attend school, with the result thatmillions of students were schooled online. all of this activity generated ahuge amount of online traffic data and information, which needed to becollected, processed, stored and distributed. subsequently, idc data andinformation collection, processing, storage and distribution demand in chinasaw a surge in recent weeks.
ahead,and spurred on by the impact of the covid-19 outbreak on the internet activityrate in china, as well as the accelerated development of the cloud, big data, theiot, vr, ai and the utilisation of 5g in the country in the near future, therewill be a greater need for data and information processing racks in idcs inchina. as the number of idcs in the country grow and the number of racksincrease, according to kezhi consulting, by the end of 2022, the idc market inchina is expected to reach a value in the order of rmb 320 billion plus.
china idc market size(rmb billion) and growth rate (%) (2019-2022)
source: kezhiconsulting, cushman & wakefield research
shaun brodie, head of occupier research, greater china, cushman& wakefield, said:” backed by china’s ‘new infrastructure’investment plan and by the technology and the network infrastructure, futureidc market demand in china is expected to grow. much of this future demand willbe largely driven by the infrastructure as a service (iaas) cloud servicemarket and by internet companies and application developers. moving forward,given the expected increase in volume of received, processed and distributeddata, these groups will need even more robust infrastructure support, datastorage capacity and data processing power. with this in mind, as rack spacecapacity further expands, the idc industry in china looks set to benefit fromgreater business opportunity volume in the future. “
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cushman& wakefield (nyse: cwk) is a leading global real estate services firm thatdelivers exceptional value for real estate occupiers and owners. cushman &wakefield is among the largest real estate services firms with approximately53,000 employees in 400 offices and 60 countries. across greater china, thereare 22 offices servicing the local market. the company won four of the topawards in the euromoney survey 2017 and 2018 in the categories of overall,agency letting/sales, valuation and research in china. in 2019, the firm hadrevenue of $8.8 billion across core services of property, facilities andproject management, leasing, capital markets, valuation and other services. tolearn more, visit www.cushmanwakefield.com orfollow @cushwake ontwitter.
forfurther information, please contact:
mandyqian
director,marketing & communications, greater china
tel: 86 10 8519 8040
mandy.qian@cushwake.com
