With the rapid development of the Internet economy, coupled with the increasing efforts of outbound business of Chinese enterprises, the Asia-Pacific region, especially in Southeast Asia, the game and e-commerce industry, the demand for data centers is increasing. China IDC Circle has previously written a special analysis of "Don't look at India! This is where China's data center service providers go abroad". Meanwhile, as Shanghai and Beijing became the core pops, they have entered the Asia-Pacific region's head data center market with strong user demand and rising capital attention.  

The number of investment institutions in the Asia-Pacific region considering buying IDC assets has risen by 20% compared with 2019. Shanghai and Beijing are being given priority because of the dual impact of user demand and scarce resources. It has become the "scent" in the eyes of all the capitals. At present, the total capacity of IDC in Shanghai has reached 301 MW, which is basically the same as that of Tokyo, Japan. 

01 The rapid growth of data center demand in the Asia-Pacific region 

Shanghai has become a new hot spot 

The reasons for this are mainly from two sources. First of all, from the perspective of the large environment, with big data, industrial Internet, Internet of Things, 5G and cloud computing and other related industries to land and expand, the importance of data centers as infrastructure is becoming increasingly prominent. Especially since the outbreak of the 2020 outbreak, the social demand for remote work has increased significantly, the original data storage and processing is stretched, many large cloud service providers have to urgently expand computing capacity. Second, the global economy as a whole is weak, while the data center market is still expanding at a rate of 30%. Coupled with the cumulative impact of China's new infrastructure policy, the capital flows. Economically developed cities such as Beijing and Shanghai are also in high demand, making it logical to become the most important data center emerging market in the Asia-Pacific region. 

According to the IDC Market Research Report 2019-2020 in Shanghai and surrounding areas released by Science and Technology Consulting-China IDC Circle, the IDC business market size in Shanghai reached 12.24 billion yuan in 2019, up 17.1% YoY, a larger increase than in 2018. In 2018-2019, 44,000 new cabinets were added in Shanghai, including 22,000 new cabinets in 2018 and 22,000 in 2019. At present, in addition to Beijing, Shanghai is the largest city in China's IDC business market. Meanwhile, in the next three years, the IDC business market size in Shanghai will continue to maintain a growth rate of more than 15%, and the market size is expected to reach 20.12 billion yuan by 2022. 

From the existing data analysis, Shanghai's demand for data centers mainly comes from hyper-large-scale operators, online gaming, retail, e-commerce and finance. In addition, government support and 5G landing has become another important factor. Zhang Jianming, deputy director of the Shanghai Economic and Information Commission, said recently that the city's total investment in 5G construction this year will be nearly 10 billion yuan, and 12,000 new outdoor base stations and 32,000 indoor stations will be built. According to relevant reports, the first batch of 48 major projects and project packages to be implemented in Shanghai in the next three years is expected to total investment of about 270 billion yuan, including the construction of 34,000 new 5G base stations, the construction of more than 100 unmanned factories, unmanned production lines, unmanned workshops, will drive 150,000 enterprises to land on the cloud platform. All these have played a huge role in promoting the development of data centers in Shanghai and the surrounding areas. At present, shanghai's new engine room on the shelf rate is mostly more than 90%, and the city's old room on the shelf rate is basically maintained at 70%. 

Therefore, in June this year, the Shanghai Municipal Information Commission approved the construction of 12 new data centers, to ease the pressure on its calculation will play a role. Shanghai has also launched eight major policy measures for the Shanghai version of "New Infrastructure" to create a favorable environment for social funds to increase investment in "new infrastructure". In addition, and beijing, the situation is similar, due to the high data center PUE, to the urban power grid has brought great pressure, in Shanghai data center construction restriction policy and Nantong, Suzhou and other surrounding areas to encourage the dual role of the main data center service providers and some local service providers, gradually accelerate the distribution process of data center business in the surrounding area of Shanghai, focusing on Nantong Economic and Technological Development Zone and Suzhou Taicang City, Kunshan City and other places, to supplement the Shanghai cabinet resources supply. 

02 Demand in the Internet and financial sectors continues to 

The share of cloud service providers has increased 

In terms of specific industry segmentation, Shanghai is china's core city, and its financial and Internet customers are the biggest consumers in its data centers. First of all, as a traditional financial center, the major banks, insurance institutions mostly have headquarters in Shanghai, in the IDC business market industry customer structure is significantly higher than the rest of the country. In order to ensure the security of data interaction, the demand for computing power has increased significantly in recent years, and secondly, due to the high level of consumption in Shanghai, games, video and e-commerce and other Internet consumer applications are developing rapidly, these have put forward more demand for data centers. 

However, based on the business attributes of data center heavy assets, the retail model of cabinet rental price is high, for data storage and computing needs less small and medium-sized enterprises, the purchase of cabinets is not only too expensive, the risk is also great. Therefore, with the rapid rise of the public cloud market, a large number of small financial institutions are gradually targeting cloud services. According to data from Science consulting-China IDC Circle, the IDC business market in Shanghai reached 12.24 billion yuan in 2019, up 17.1% year-on-year. The 40,000 new cabinets added in Shanghai in 2018-2019 are mainly digested by Internet companies such as Alibaba and Tencent, which show that demand for cloud computing is growing rapidly. 

The postscript 

As a result of these reasons, high-quality capital in the Asia-Pacific region has set its sights on the Shanghai region. However, despite strong demand, the Shanghai area's construction restrictions are also a problem that cannot be avoided. For example, at present, the Shanghai municipal government requires the stock transformation data center PUE is not higher than 1.4, the new data center PUE must be limited to 1.3 or less. Therefore, the overflow of demand is an inevitable trend, and the Yangtze River Delta region in recent years the demand for computing power is also rising, the combination of the two, the Shanghai data center industry has taken shape. 

Translated from: https://mp.weixin.qq.com/s/SlvoccKaO6E8W0jiPCulZQ