China Internet Data Center market revenue to reach of CNY 320bn in 2022E

The Cloud and Data Centre Markets in the Asia Pacific Region

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LEWES, DELAWARE, UNITED STATES, September 29, 2021 /EINPresswire.com/ — The Chinese market remains the second largest Data Centre market in the world after the US and is also influencing the Hong Kong market with the creation of the GBA (Greater Bay Area). But there is a range of new Data Centre investments also being made in Australia, Japan, and South Korea, with Australia accounting for a tenth of Data Centre space as of the start of 2021.

After China, the largest Data Centre markets in Asia include Japan, Singapore, Australia, and Hong Kong all of a similar size (with Data Centre raised floor space typically of 300,000 m2 to 400,000 m2 in total).

Singapore has become the central hub location for companies investing in South East Asia – including both digital companies and Data Centre Providers.

The smaller Data Centre markets are poised for higher growth rates – with South Korea, Thailand, Vietnam & Taiwan forecast to have the highest increase – with South Korea outstripping the other markets.

The Asia Pacific region including –

>> Asia Pacific average per MW Data Centre build costs = USD $15.1 million per MW
>> Asia Pacific average per m2 Data Centre build costs = USD $22,700 per m2
>> Asia Pacific Capex build cost of over 5 times (from the lowest to the highest cost)
>> Equinix reported nine Data Centre expansions across the Asia Pacific region with Capex build costs ranging from USD $49 million (Sydney-5 facility) up to USD $144 million (Singapore-5 facility).

Overall, the average cost of Data Centre build Capex is highest in the EMEA region followed by the Americas region and the Asia Pacific region.

To build new Data Centres a range of costs are involved in the Capex build cost which includes the following variable factors –

>> Land acquisition costs (with a premium paid for a site close to the city)
>> Brownfield land clearance (with additional costs for clearing of the site)
>> Construction costs (with additional costs depending on higher power densities)

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the China IDC market will likely post a 27% CAGR for 2019-22E, reaching revenue of CNY 320bn in 2022E, according to IDC Quan. While China operators currently remain the dominant players in this market (as China Telecom, China Unicom, and China Mobile altogether represented 62% market share in 2019), we see a trend that carrier-neutral players are gradually gaining market shares, as well as increasing their presence and impact to the overall business ecosystem in future, considering their active business expansion and the potential strong demand arising from the market.

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