China leads in investments in the data industry. China is ahead of its global peers when it comes to investments in data centers. These investments make sense in light of the current data-driven business landscape. As the demand for computing power swells due to the proliferation of data-driven services and the integration of 5G, the internet of things, artificial intelligence, etc., the stability and reliability of data services becomes crucial.
The local data center industry in China is a booming business that was valued at 122.8 billion Yuan last year. It is projected to grow and cross 200 billion Yuan in valuation by 2020.
5G is expected to hit the markets sometime next year. The increasing application of data across a plethora of services will speed up the data center investments, and the industry will grow further.
By the end of this year alone, the market is expected to reach a valuation of 190 billion Yuan. The largest contribution to this growth in the sector has come from the internet companies, followed by financial service providers, manufacturing sector and the government.
Furthermore, China is looking to boost its computing power. It is already a global leader when it comes to the volume of super-computers produced. It topped the list of the world’s fastest supercomputers with 219 systems produced within its borders. This represented 43.8% of the top 500 fastest supercomputers in the world. The US was a distant second on the list with 116 systems.
The leading players in the supercomputer market are making large investments in the data industry. For example, Sugon, the largest manufacturer of supercomputers in China, is investing in a national-level innovation center for advanced computing in light of the mushrooming demand for computing power. This investment will be up and running by the end of the year 2021.
The company intends to invest more in these areas. It aims to build data centers across the country including Gansu, Shanxi, and Jiangsu provinces.
Other major players in the Chinese tech landscape are also boosting their investments in the field. Last year, Tencent set up a data center in tunneled caves in the Guizhou province deep within a 100-meter mountain. The data center is on trial run currently but will be used to store the most vital data of the company in the near future.
Tech giants such as Huawei Technologies, Apple Inc and Tencent Holdings have beefed up investments to set up data centers in China’s Guizhou province. The province offers favorable conditions such as a mild climate and substantial power resources.