Cookie policy: This site uses cookies (small files stored on your computer) to simplify and improve your experience of this website. Cookies are small text files stored on the device you are using to access this website. For more information on how we use and manage cookies please take a look at our privacy and cookie policies. Some parts of the site may not work properly if you choose not to accept cookies.

sections

China's data center colo market to quadruple by 2016

  • Print
  • Share
  • Comment
  • Save

The Chinese data center colocation market will grow at 40% compound annual growth rate, reaching 380% of its current size by 2016, according to the latest report on the market by DCD Intelligence.

 

Enterprises in China are hungry for carrier-neutral data center space because incumbent government-controlled telcos are doing a poor job at managing traffic bottlenecks on their networks.

 

Hawkins Hua, the report's author, said, “Inherent complexities inovleved in network connecitivity in the country have led to bottlenecks as internet traffic has increased. This has led to increased use of colocation facilities by enterprises wishing to bypass traditional inteconnection routes.”

 

State-owned carriers still dominate the market, however, collectively drawing two thirds of the country's total colocation revenue. Many companies that are part of the recent influx of carrier-neutral providers are reliant on network provision and space by the state-owned giants.

 

Following network interconnectivity, other key demand drivers in China are infrastructure reliability, secuirty, scale and geographic coverage. Power costs and staffing issues also play a major role, as they do elsewhere in the world.

 

Regulations prevent foreign companies to establish operations in the country, so there has not been an influx of multinational data center providers. Some, however, have found ways into the market through partnerships with Chinese firms.

 

One of the world's largest colocation providers, California-based Equinix, for example, entered mainland China in 2010 by partnering with system integrator Shanghai Data Solutions. Equinix is using the Shanghai company's data center to provide services in the country.

 

The multinational followed the move with acquisition of Hong Kong-based Asia Tone in 2012, which had data centers in Hong Kong, Singapore and Shanghai. The Shanghai data center was under construction when Equinix bought the company and came online later that year.

 

To get the latest DCD Intelligence report on China's colocation market, visit the DCD Intelligence website.

Related images

  • Shanghai Pudong. By Wechselberger. Source: Wikimedia Commons. Licence: Attribution-ShareAlike 3.0

Have your say

Please view our terms and conditions before submitting your comment.

required
required
required
required
required
  • Print
  • Share
  • Comment
  • Save

Webinars

  • Is Hyperconvergence a Viable Alternative to the Public Cloud?

    Thu, 31 Mar 2016 15:00:00

    Enterprise IT leaders are right to be skeptical of such bold claims. After all, is it really possible to deliver an on-premises infrastructure that delivers the same agility, elasticity, and cost-effectiveness of public cloud providers like Amazon Web Services? If you’re following the traditional IT model, with its many siloes and best-of-breed point solutions, the answer is, most likely, no. To truly deliver a viable alternative to public cloud, you need to look beyond traditional IT. Join Evaluator Group and SimpliVity to learn more about how hyperconverged infrastructure can deliver the efficiency, elasticity, and agility of public cloud."

  • "Single Pane of Glass” comes to your Datacenter facility & IT operations

    Wed, 24 Feb 2016 18:00:00

    Join Hewlett Packard Enterprise and RoviSys,as well as OSIsoft, for a webinar hosted by DatacenterDynamics’ CTO Stephen Worn, as they discuss the implementation of the “Single Pane of Glass” solution and some of its resulting benefits: •An estimated 10 Million kWh saved in the first full year of operation •Ability to easily meet “Best-Practices” throughout data center operations

  • Overhead Power Distribution – Best Practice in Modular Design

    Wed, 3 Feb 2016 16:00:00

    Overhead power distribution in your data center offers many attractive possibilities, but is not without its challenges. Join Starline's Director of Marketing, Mark Swift; CPI’s Senior Data Center Consultant, Steve Bornfield; and University of Florida's Joe Keena for an exploration of the options and some of the pitfalls, supported by real-life examples from the field.

  • White Space 29: See the diagram

    Fri, 29 Jan 2016 10:40:00

    Peter is investigating DevOps, Bill looks at security while Max is stuck on the infrastructure level

  • White Space 28: The good, the bad and the ugly

    Thu, 21 Jan 2016 12:10:00

    Join the DCD team again this week, as they discuss AMD's ARM based efforts, waste heat, BT's EU deal and cloud for Canucks and much more! Enjoy.

More link