Cushman & Wakefield today released its Data Centers in Greater China — Three Points to Process in 2024 report.
As investors, developers and operators continue to involve themselves in the data center market in the region, there are many themes, topics, and issues to consider. In this report we look at three key points and they are:
- The market
- Government policy
- Asset management
Strong Data Center Development Impetus
When considering the overall data center market in Greater China, the major city markets can be subdivided into four groups:
- Powerhouse markets — such as Beijing and Shanghai
- Established markets — such as Hong Kong
- Developing markets — such as Guangzhou
- Emerging markets — such as Taipei
Greater China Data Center Market Key Indicators
Looking specifically at the Greater China market, according to the China Academy of Information and Communications Technology (CAICT), the Chinese mainland's data center market volume exceeded RMB150 billion in 2021 and is expected to reach RMB243 billion by the end of 2023.
Meanwhile, the Beijing-Tianjin-Hebei region, the Yangtze River Delta region and Greater Bay Area continue to maintain strong data center construction impetus, both in terms of the number of new cabinets and aggregate inventory.
Policy Support: The Action Plan for Quality Development of Computational Power Infrastructure for the Chinese Mainland
In October 2023, six government departments in the Chinese mainland, including the Ministry of Industry and Information Technology, the Office of the Central Cyberspace Affairs Commission Cyberspace Administration of China, the Ministry of Education of the People’s Republic of China, the National Health Commission of People’s Republic of China, the People’s Bank of China, and the State-owned Assets Supervision and Administration Commission of the State Council, issued The Action Plan for Quality Development of Computational Power Infrastructure (including data center infrastructure) (hereinafter referred to as “The Action Plan”).
The basic principles and goals of the plan through to 2025 are ensuring:
- A computational power infrastructure layout that is optimized
- A computational power network that is sustainable, safe and reliable
Optimal Asset Management Has Become a Focal Point for the Data Center Industry
In Greater China, having a good understanding of the market and of the latest government policies is certainly key to success in terms of data center investment, development and operation. Recently, however, there is a third aspect to which investors and operators of data center in the country are paying close attention to further ensure business success and that is optimal asset management.
The optimal asset management of data centers involves a number of aspects, including cost savings, performance improvement, consolidation and best practice encouragement.
Shaun Brodie, Head of Research Content, Greater China, Cushman & Wakefield said, “In any market, quality data center infrastructure is an important resource to support the development of its digital economy. With data center capacity now standing at 4,818 MW, Greater China has already established itself as one of the most important data center markets globally. Ahead, we anticipate 1,216 MW of data center capacity to be built in Greater China, with further planned capacity estimated to be 2,054 MW. This quality data center infrastructure plays and will continue to play an important role in realizing digital transformation, fostering future industries, and creating new momentum for economic development in Greater China.”
Please click here to download the full report.
About Cushman & Wakefield
Cushman & Wakefield is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In Greater China, a network of 23 offices serves local markets across the region. In 2023, the firm reported revenue of $9.5 billion across its core services of valuation, consulting, project & development services, capital markets, project & occupier services, industrial & logistics, retail and others. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit www.cushmanwakefield.com.
