The Greater China data center market has continued to evolve since we published our last thematic paper on this market in 2022. 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
The Market
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
Government Policy
One significant policy which is expected to further the development of the data center market in the Greater China region is The Action Plan for Quality Development of Computational Power Infrastructure for the Chinese mainland. 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
Asset Management
In Greater China, having a good understanding of the market and of the latest government policies is certainly key to the success in terms of data center investment, development and operation. Recently, however, there is a third aspect to which investors and operators of data centers 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.