The State Council issued the "14th Five-Year Plan" for the development of the digital economy proposed to promote the development of cloud-network synergy and computing network integration. Accelerate the construction of computing power, algorithms, data, application resources synergy of the national integrated big data center system.
Data center industry is the "basic base" of digital economy. Under the dual role of current digital economy development demand and policy dividends, the domestic market scale has continued to expand in recent years, with the scale of China's data center industry reaching 195.8 billion yuan in 2020, with a CAGR of 30.4% from 2015 to 2020 and a growth rate higher than the global average. Benefiting from the meta-universe construction drive and supply chain relief, global data center capex is expected to grow 17% in 2022 according to Dell'Oro forecasts, with data center spending by hyperscale cloud service providers set to grow 30% year-over-year.
IDC（Internet Data Center）
It is an Internet data center, a service platform with perfect equipment (including high-speed Internet access bandwidth, high-performance local area network, safe and reliable server room environment, etc.), professional management and perfect applications.
Data Center Industry Chain
From the perspective of IDC industry chain, it is mainly divided into three segments: infrastructure, IDC value-added/hosting, and application/service.
Upstream suppliers include IT equipment and supporting equipment, where IT equipment includes servers, switches, routers, etc., and supporting equipment includes land, communication network, power supply, heat dissipation, racks, etc.
Upstream: Resource exchange equipment
Servers currently provide domestic cloud computing server service level varies widely , because the cloud computing server is a relatively broad and complex concept, the technology involved is quite wide, the cloud computing research and development of enterprises have high capital and information requirements, its upstream involves more key components. In the long run, as domestic manufacturers further break through the core technology, including domestic machine manufacturers will master more core technologies, such as domestic CPUs, boards, AI chips and CPU high-speed interconnect chips.
Breakthroughs in key technology areas such as domestically produced key components including Changjiang Storage SSD. Domestic whole machine manufacturers that master the core technology include Longchamp Information, China Science and Technology Shuguang, Xinhuasan, Huawei, Lenovo, etc. Switch head manufacturers mainly include Huawei, Xinhuasan, Cisco and Starnet, etc.; the main companies of server room air conditioners include Invac, Jialitu, Imitcon and Aetna, etc.; the main participating companies of UPS include Eaton, Kehua, Crestec and Wolong Electric Drive, etc.
Optical module: the key entrance to data traffic optical module is the core component of photoelectric conversion, benefiting from the explosion of data traffic in recent years, the rapid development of industry scale. Optical module industry according to the downstream can be divided into data communication market and telecom market: data communication optical module mainly benefited from the large cloud vendors switch replacement and network architecture changes, the new data center leaf spine architecture relative to the traditional three-layer architecture gas demand is expected to increase by about 5 times. Telecom optical modules mainly benefit from the 5G network construction for the height of optical module demand and the overall increase in demand for quantity. The global market share of Chinese optical module vendors is expected to exceed 50% in 2021 due to the advantages of Chinese vendors in supply chain and manufacturing costs.
The market of optical module is huge, among which the representative companies of optical devices are Optical Xun Technology, Bortron Technology, Tianfu Communication, Huagong Technology, Huawei Heisi, etc., and the representative companies of optical module are Zhongji Xutron, Bortron Technology, etc. Lightcounting predicts that the global optical module market is expected to increase from USD 8 billion in 2020 to USD 14.5 billion in 2026, with CAGR=10.4%.
Midstream: IDC service providers
The midstream is the IDC service and solution provider, the main force of data center industry construction, integrating the upstream resources and providing stable and efficient IDC services and overall ending solutions.
China's IDC market pattern is dominated by the three major operators, and coexists and develops with third-party IDC enterprises and cloud service providers. At present, telecom operators benefit from the advantages of network bandwidth construction, capital and customer resources, and always occupy a large market share (accounting for about 50% of the domestic market). Third-party IDC vendors are becoming more and more professional in IDC services through competition in security, reliability, and breadth of service. Their advantages in data center construction speed, custom design, cost management and O&M quality are gradually manifested, and they are also more adaptable to the personalized needs of enterprises, with a trend of growth in recent years. The head third-party service providers have resource endowment and cost advantages. At present, the main third-party IDC vendors are Wanguo Data, CenturyLink, Qinhuai Data, Huanhuan New Network, Baoxin Software, Aofei Data, Dr. Peng, Data Port, Kehua Hensheng, etc. The future data center market pattern is expected to replicate the development path of mature foreign IDC markets, dominated by third-party operators, while cloud computing Internet enterprises will expand their cooperation with third-party operators and telecom operators in construction, with a view to giving full play to the network bandwidth advantages of operators and the O&M advantages of third-party operators. 2020 Data Center Service Provider Competition Patterns.
资料来源：中国信通院
Downstream: Cloud Vendors
Cloud vendors are the most important demand side for data centers, with industry downstream demand led by cloud vendors and Internet vendors.
Globally, data center capital expenditures by cloud service providers (Amazon, Google, Meta and Microsoft) are expected to exceed $20 billion in 2022. Domestic cloud service providers mainly include Internet majors such as Ali Cloud, Tencent Cloud, Tencent Cloud, Huawei Cloud and Shanda Cloud.
In terms of domestic location demand, first-tier cities have a unique advantage, and demand is still mainly concentrated in first-tier cities and surrounding areas, with demand accounting for more than 50%. According to the research report of China Digital Alliance, vacant resources are mainly concentrated in the central and western parts of the country, and the shelf rate of some western parts is less than 10%; in comparison, the shelf rate of North, Guangzhou and Shenzhen reaches 60%-80%. Domestic Internet giants Ali, Tencent, Byte Jump, Racer have opened large-scale base type projects in the second and third line of construction, Internet companies tend to find third-party IDC enterprises built on behalf of the model, that is, Internet companies to get energy consumption, land, bandwidth, electricity and other resources, by IDC enterprises on behalf of the investment inside the mechanical and electrical equipment, and usually set about 10 years of operation, compared to the first-line layout of IDC enterprises In contrast, the profitability and bargaining power of the substitution model is weak, but is expected to achieve rapid growth along with the rapid development of Internet enterprises.
