Ai, Industry and Expanding Data Center Demand: The Drivers and Impacts of China’s Evolving Digital Presence

As the digital world expands and develops, it’s clear that the world stands at the brink of (or in the midst of, depending on the perspective) a transformational period in human development. This fourth industrial revolution, brought about by previously unimaginable advances in global technology, is unmistakably creating a data-driven culture and an accelerating dependence on and thirst for continued digital transformation.

As the amount of worldwide generated data is predicted to climb to a striking 175 zettabytes by 2025 — a trajectory being pushed to the limits by AI, IoT, 5G and other emerging digital use cases — the pressure on the data center builds. As a foundational element of the datasphere, data centers are facing an influx of data-centric demands from businesses that are increasingly dependent on the access, storage and processing of their mission-critical information. Plus, the rise of intelligent processes, machine learning platforms and cloud-centric strategies are also driving unprecedented requirements. In fact, the data center market is predicted to register a CAGR of 13.69 percent over the period of 2019 – 2024, with APAC leading the way.

Right now, the Asia Pacific AI infrastructure market is forecasted to grow at the highest global CAGR from 2019-2025, with the number of data center providers and cloud companies increasing due to the high efficiency and economies of scale offered by cloud computing. This growth in demand is particularly apparent in China – a trend that can be attributed to the need for increased, efficient industrial output and, subsequently, an increase in both the number of manufacturing plants and the data, cloud and automation demands that they bring. Not to mention, China has a population that, even in 2017, exhibited an e-commerce user penetration of 73 percent in first-tier cities.

To support and empower this continued digital revolution, ensuring that high-capacity and highly capable data center space is ready and available to meet meteorically rising needs is of chief importance. Currently, however, there exists a firm desire to locate data assets in developed markets such as Beijing and Shanghai, leading demand to outpace supply in these areas by a margin of 20-25 percent respectively.

With the implications of unmet data center demand posing risks of growth hindrance and digital stagnation, Chayora, a leading developer and operator of world-class hyperscale data center campuses in China, is focusing its efforts on closing this gap in supply. The company serves Fortune 500 companies and premium Chinese data center operators offering cloud services, ICT services, financial services and other offerings dependent on intensive, high-quality data center infrastructure. To address the data center concern, Chayora not only offers two strategic campuses in Beijing/Tianjin and Shanghai — each offering 300MW of power with goals to ensure that 50 percent is sourced from clean, sustainable resources — but it also plans to expand with further facility development.

Continued innovation promises to bring new opportunities, applications and use cases that leverage the best of artificially intelligent, next-generation and cloud-based solutions to China and the surrounding regions. Yet, to ensure this bright digital future can reach its maximum potential, the task of meeting data requirements rests on the shoulders of the data center market. As the new decade begins, Chayora will continue to build and offer critical infrastructure to businesses as they reinvent their operations in the era of the fourth industrial revolution.

To learn more about Chayora, please visit www.chayora.com.

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