In recent years, the data center market in China experienced exponential growth with approximately 32% CAGR from 2012 to 2017, driven by the flourishing of the Internet industry as well as government support in the Internet+, big data strategy, and digital economy realms. Although the number looks promising, the actual utilization rate and demand for data center differ significantly from regions to regions within China. In the coastline cities, the more developed part of China, the average utilization rate is more than 60%, whereas in the western part of China, the utilization rate is just above 30%. The numbers also indicate the differences in data center demand. As the economic hubs, tier 1 cities, Beijing, Shanghai, Guangzhou, and Shenzhen see more internet traffic and network development than any other parts of China and therefore have the most utilization rate.
The demand for data center is growing in tier 1 cities, but the latest regulation made it more difficult for data center operation companies to expand, specifically in Beijing. In September 2018, the Beijing government issued the Catalogue for the Prohibition and Restriction of Newly Increased Industries (2018 Edition) (the “Catalogue”). According to the Catalogue, companies are forbidden from constructing new or expanding current data center campuses (with the exception of cloud data centers with below 1.4 PUE).
With and limited number of data centers and growing demand for data centers in Beijing, driven by the development of 5G technology and Internet of Things, data centers are expecting supply shortage in the upcoming years. This will result in higher revenue growth for existing data center providers.
In 2013, ChinaCache embarked on constructing the Atecsys data center located in Beijing Tianzhu Free Trade Zone and adjacent to major business districts as well as freeways. Sitting on ChinaCache’s privately owned land, the data center campus provides 80,000+ square meter (860,000+ square feet) of data center space that fits approximately 15,000 server rack cabinets. With nine server buildings and a dedicated building for CHN-IX, a carrier-neutral Internet Exchange Center, Atecsys is Tier III Design Certified by Uptime Institute, a standard used to evaluate data center facilities in terms of potential site infrastructure performance. For more information on our data center products and offerings, please click here.