Data Centers in China

China – Massive Scale for Global Digital Expansion

China is the primary infrastructure hub for organizations requiring massive density and high-speed access to a consumer base exceeding 1.4 billion people. Its sophisticated network ecosystem offers the capacity necessary to manage high-traffic workloads and drive regional revenue growth through strategically positioned facilities.

China: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market features a competitive landscape with over 20 carriers as of January 2026. This density provides diverse routing options for enterprises managing high-traffic, latency-sensitive workloads.

Direct Cloud On-Ramps: Over 4 direct cloud on-ramps provide access to 2 cloud regions as of January 2026. Access includes AWS, which allows for efficient integration between physical hardware and public cloud services.

Internet Exchange Points (IXPs): Primary peering points are located in Hong Kong and Shanghai, ensuring efficient local traffic exchange and reduced latency for regional users.

Bare Metal: High-performance bare metal services are available through providers such as phoenixNAP and Hivelocity as of January 2026. These offer dedicated compute resources without hypervisor overhead.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at $0.08/kWh as of June 2025. The energy mix consists of approximately 65% fossil fuels, 30% renewables, and 5% nuclear as of January 2026. This pricing offers a predictable cost structure for large-scale deployments.

Power Grid Reliability: Data center corridors benefit from a well-engineered and redundant grid. Facilities utilize multi-substation support to maintain consistent uptime for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Infrastructure is strategically concentrated near economic hubs like Beijing, Shanghai, and Shenzhen. This proximity minimizes latency for corporate headquarters and specific financial or retail applications.

Regional Market Reach: China acts as the primary gateway for the Asia-Pacific region, supporting a massive consumer base that requires high-speed digital access.

Tax Advantage For Data Centers: The established regulatory framework offers a predictable environment for capital investment despite the lack of specific incentives. Enterprises benefit from a stable fiscal landscape that supports long-term infrastructure planning.

Natural Disaster Risk

China maintains a Low overall risk rating with a score of 3.0 as of September 2025. The environment is relatively stable, though specific coastal and river zones require localized hazard planning for water-related events.

The highest scoring natural hazards as of September 2025 include:

• River Flood: 9.3
• Tsunami: 9.0 (Regional/Coastal only)
• Coastal Flood: 9.0 (Regional/Coastal only)
• Tropical Cyclone: 7.8
• Earthquake: 6.7
• Epidemic: 5.4

Most facilities in major inland hubs like Beijing are insulated from coastal risks. All scores are current as of September 2025.