"the 2020 pandemic accelerated the change in corporate it strategy, as companies rapidly shifted to the cloud. continuation and optimization of this shift will continue throughout the next several years, creating further emphasis on cloud services availability and connectivity across platforms.”
said dave fanning, executive managing director, data center advisory group leader at cushman & wakefield. “construction of new product has skyrocketed, with the 1.6 gw under construction across markets studied last year swelling to 2.9 gw in this year’s edition.”
sydney, labeled as an emerging market and alternative in last year’s ranking, moved drastically up the overall rankings to third place, capping off a year of major new development announcements and an ongoing transformation of much of australia’s government it infrastructure. the business capital of australia is a key location for initial in-country cloud deployments and enjoys robust regional connectivity.
although singapore and amsterdam both have tempered data center development via local moratoriums, both still finished in the top ten, a testament to their strong existing markets, dense fiber, and array of available services.
of the new markets introduced this year, seoul received the highest overall score, marking an impressive debut for a long-overlooked data center market, and long-time data center stalwarts london, tokyo, frankfurt, silicon valley, and hong kong all remain extremely relevant.
tech giants clearly recognize the current and future data center market growth in china. data center rack space demand has been increasing considerably in the country for some time and it is the cloud sector which is now drawing much attention. additionally, much demand has also been generated from internet companies and application developers, such as ecommerce players, multimedia content providers, digital payment companies and location-based service application developers.
ahead, and spurred on by the impact of the covid-19 outbreak on the internet activity rate in china, as well as the accelerated development of the cloud, big data, the iot, vr, ai and the utilization of 5g in the country in the near future, there will be a greater need for data and information processing racks in data centers in china. as the number of data centers in the country grows and the number of racks increase, according to kezhi consulting, by the end of 2022, the data center market in china is expected to reach a value in the order of rmb 320 billion plus.
backed by china’s ‘new infrastructure’ investment plan and by the technology and the network infrastructure, future data center market demand in china is expected to grow. much of this future demand will be largely driven by the infrastructure as a service (iaas) cloud service market and by internet companies and application developers.
shaun brodie, head of occupier services, greater china at cushman & wakefield, said: “moving forward, given the expected increase in volume of received, processed and distributed data, these groups will need even more robust infrastructure support, data storage capacity and data processing power. with this in mind, as rack space capacity further expands, the data center industry in china looks set to benefit from greater business opportunity volume in the future.”
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cushman & wakefield (nyse: cwk) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. cushman & wakefield is among the largest real estate services firms with approximately 53,000 employees in 400 offices and 60 countries. across greater china, 22 offices are servicing the local market. the company won four of the top awards in the euromoney survey 2017, 2018 and 2020 in the categories of overall, agency letting/sales, valuation and research in china. in 2019, the firm had revenue of $ 8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. to learn more, visit www.cushmanwakefield.com or follow @cushwake on twitter.
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