Under the country’s “new infrastructure” development plan, data centers are listed as key development projects in 2020. In view of the recent development of the domestic data center market, we observe the following two trends.
Trend 1 Driven by the business needs of cloud service providers and Internet enterprises, the data center market keeps growing rapidly. And thanks to the advent of 5G, demand will rise further. The key drivers of the growth of data center cabinets are continued network traffic growth and the continued outsourcing needs of enterprises. More and more small and medium-sized retail and Internet enterprises are expanding their public cloud layout. The business growth of domestic cloud service providers is significant. In the next three years, they will continue to increase data center procurement. Internet companies, especially the gaming and video industries, have maintained high traffic growth (and further increased during the pandemic), and their demand for data centers continues to grow. With the advent of the era of 7G, the continuous growth of future traffic spurt will benefit the development of data centers in the long term. Trend two benefits from the development of hybrid cloud, increasing demand for value-added services in data centers. In addition to traditional data center value-added services such as bandwidth and operation and maintenance (O&M), the demand for new value-added services including network interconnection is expected to grow. One of the highlights of a leading U.S. data center operator’s business is providing a wide range of value-added services for different types of customers. Due to the differences in network structure, customer characteristics and regulatory regulations between China and the United States, the development of network interconnection business in China has the same great potential, but presents different characteristics. In China, the demand for “cloud connectivity” is expected to continue to increase as enterprises develop hybrid cloud layouts in the future, and value-added service charges are expected to increase accordingly. Large IDC manufacturers have obvious advantages in their own resources, technology and operation, while small and medium-sized IDC is experiencing fierce competition and it is more difficult to develop. The one-stop solution provided by ZKEYS will help small and medium-sized IDC enterprises stand out and grow bigger and stronger.