The Investments in China's Internet Data Center Market Is Expected to Reach USD 34 Billion in 2028

According to the data from Research and Markets, the investments in China's internet data center market is expected to grow at a CAGR of 2.69% from 2022-2028.

The Internet data center market in China is one of the most technologically advanced markets globally, with a large number of organizations operating through digital platforms and the market being the second largest economy globally.

In February 2022, the Government of China announced approval to develop around ten national data center clusters and establish around eight computing hubs to fuel the growth of the data center industry.

The government of China has also launched its East-to-West data computing strategy to support the industry's growth in the country's western regions that are underdeveloped or economically weak.

The country's industrial and commercial deployment of 5G services has been growing significantly. It thus is driving the need for the deployment of edge data centers for low latency connectivity and data transfer, especially in areas with weak connectivity.

The rapid growth of the Internet data center market in China has also driven the demand for sustainability in the country, with initiatives such as the Government of China targeting carbon neutrality in the country by 2060.

Operators in the country have started working on adopting renewable sources of power. For instance, cloud operator Tencent Cloud has established targets to run 100% of operations from renewable energy sources by 2030.

The government of China has started investing significantly in the growth of computing power and the adoption of advanced technology in the country. For instance, the government has established its New Infrastructure Plan, which targets to support foreign investors in the country through benefits such as lower land prices, lenient real estate, reduced corporate income tax, the exemption in tariffs, and other benefits.