Data Centers in Shanghai

Shanghai – Premier Gateway to Mainland China

Shanghai is the critical entry point for businesses targeting China's vast domestic market. Its immense data center capacity and rich connectivity provide the low-latency infrastructure required for financial services, manufacturing, and e-commerce operations to succeed in China's most economically active region.

Shanghai: At A Glance

Network & Connectivity Ecosystem

Shanghai is one of mainland China's primary network hubs, though its ecosystem operates differently from global hubs due to national regulations.

Carrier Density & Carrier Neutrality: The market features over 10 providers operating within 29 data centers, as of September 2025. While carrier choice exists, the landscape is dominated by the major state-owned telecommunications companies, China Telecom, China Unicom, and China Mobile. True carrier-neutral facilities are available but require careful selection.

Direct Cloud On-Ramps: There are 0 public cloud on-ramps in the market, as of September 2025. Access to hyperscale cloud regions, including those from Alibaba Cloud and other major providers operating in China, is achieved through dedicated private network interconnects and managed network services.

Internet Exchange Points (IXPs): Public peering is not as prevalent as in other global markets. The Shanghai Internet Exchange Point (SHIX) facilitates some traffic exchange, but the majority of high-volume peering is conducted privately between carriers and major content providers.

Bare Metal: Bare metal server options are available from providers focused on the Asian market. These services, offered by companies like Hivelocity, provide dedicated compute resources necessary for performance-sensitive applications.

Power Analysis

Average Cost Of Power: Industrial power in Shanghai is competitively priced at approximately US$0.08/kWh, as of Q2 2025. This stable cost structure is beneficial for managing the high-density compute deployments common in financial and technology sectors. China's grid is roughly 65% fossil fuels (mostly coal), 30% renewables, and 5% nuclear.

Power Grid Reliability: The power grid serving Shanghai's key industrial and free-trade zones is engineered for high reliability. Data centers are supported by redundant power feeds from multiple substations, ensuring excellent uptime for mission-critical operations.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: Data centers in Shanghai are strategically located to serve the city's primary economic engines. Facilities provide low-latency access to the Lujiazui financial district in Pudong, the Zhangjiang Hi-Tech Park for technology and R&D, and the Waigaoqiao Free Trade Zone for logistics and manufacturing.

Regional Market Reach: Shanghai is the commercial and logistical heart of the Yangtze River Delta, a megalopolis of over 150 million people. Deploying infrastructure here provides effective access to one of the world's most productive and populous economic regions.

Tax Advantage For Data Centers: China does not currently offer specific tax incentives or subsidies for data center energy consumption. The primary financial advantage of locating in Shanghai is direct access to the massive domestic market, not tax relief.

Natural Disaster Risk

Shanghai has a Low overall disaster risk profile, with an INFORM Risk score of 3 out of 10, as of September 2025. Businesses should still plan for specific, localized threats.

The most significant natural hazards for the Shanghai region are:

• River & Coastal Flood: High risk (9.3/10 and 9/10 respectively) due to its location on a river delta and low-lying coastal plain.
• Tsunami: High risk (9/10), reflecting its position on the East China Sea coast.
• Tropical Cyclone: High risk (7.8/10), as the area is susceptible to typhoons during the summer months.
• Earthquake: Moderate risk (6.7/10), with the region having some seismic activity.