China Data Center Colocation market is projected to grow at a CAGR of 22.12% during the forecast period, reaching a total market size of US$6.883 billion in 2025 from US$2.075 billion in 2019. China is a place for ample opportunities because of growing manufacturing hub in the country and rapidly increasing urbanization that is making more changes in the lifestyle of people. The country is witnessing rapid growth across all sectors. A lot of companies from abroad are coming and investing in China. China has become one of the major markets for data center colocation. The increasing number of cloud services providers and the growing IT industry is boosting the data center colocation market in China. An increase in data generation every year is forcing many companies to double their on-premise storage from time to time. More companies are opting for the data center as it addresses their storage issues without substantial upfront costs.
The data center colocation market is highly driven by advanced Information Technology (IT) and developing infrastructure available in China. The data center colocation market is seeing a rise in demand in China because of rising data security concerns combined with the emergence of Information Technology companies and better telecommunication infrastructure within the country. The increasing data generated nowadays from all technical sources is growing the requirement of the data center for storing this information.
China's data center colocation market has been segmented on the basis of the colocation model, enterprise size, and industry vertical. By colocation, the market has been segmented into retail and wholesale. Rising number of small enterprises in China is driving the market growth of retail data center colocation in the country. However, small and micro enterprises continue to face considerable cost pressures, especially with regard to high financing costs due to lack of acceptable collateral for loans. Retail colocation model helps these enterprises with limited budget to reduce operating costs and use resources efficiently while focusing on their business. However, the presence of large MNCs and organizations in China with high budget fuels the market growth of wholesale data center colocation market.
By industry vertical, the market has been segmented as communication and technology, BFSI, government, healthcare, manufacturing, media and entertainment, and others. Growing volume of big data across the healthcare sector is bolstering the demand for data center colocation across this sector. Rising use of EMR (Electronic Medical Report) and booming telehealth industry in the country are bolstering the demand for data center colocation in the country, thus, propelling the market growth.
The major players in China Data Center Colocation market are Equinix, Telehouse, Interxion, Colt Technology Services, Global Switch, Century Link, E-Shelter, and China Telecom Global.