Data Centers in China

China – Scalable Infrastructure for Global Enterprise

China

China is the definitive market for organizations requiring massive scale and high density connectivity to reach a population of over 1.4 billion. Its sophisticated network ecosystems provide the necessary capacity to drive high stakes revenue growth and facilitate rapid digital transformation.

China: At A Glance

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: The market features a competitive landscape with over 20 carriers as of September 2025. This density provides diverse routing options for enterprises managing high traffic workloads.

Direct Cloud On-Ramps: There are over 4 direct cloud on-ramps providing low latency connections to 2 cloud regions as of September 2025. Access includes AWS, allowing for seamless 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, offering dedicated compute resources without hypervisor overhead.

Power Analysis

Average Cost Of Power: Industrial electricity is priced at US$0.08/kWh as of June 2025. The energy mix consists of approximately 65% fossil fuels (primarily coal at 62%), 30% renewables, and 5% nuclear as of September 2025. 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 typically 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 localized 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: While specific incentives are absent, the established regulatory framework offers a predictable environment for capital investment. 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.

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.