1、Three points to process in 2024Greater China ResearchFebruary 2024DATA CENTRES IN GREATER CHINA Executive SummaryIntroductionThe Three Points to ProcessKey TakeawaysBusiness ContactsResearch Contacts The Market Government Policy Asset Management0304051718202 CUSHMAN&WAK E F IE L DEXECUTIVE SUMMARYTh

2、e Greater China data centre market has continued to evolve since we published our last thematic paper on this market in 2022.As investors,developers and operators continue to involve themselves in the data centre market in the region,there are many themes,topics,and issues to consider.In this report

3、 we look at three key points and they are:The market;Government policy,and;Asset management.When considering the overall data centre market in Greater China,the major city markets can be subdivided into four groups:One significant policy which is expected to further the development of the data centr

4、e market in the Greater China region is The Action Plan for Quality Development of Computational Power Infrastructure for the Chinese mainland.The basic principles and goals of the plan through to 2025 are ensuring:The MarketGovernment Policy Those that are powerhouse markets such as Beijing and Sha

5、nghai;Those that are established markets such as Hong Kong;Those that are developing markets such as Guangzhou,and;Those that are emerging markets such as Taipei(Figure 1).A computational power infrastructure layout that is optimised(Figure 4),and;A computational power network that is sustainable,sa

6、fe and reliable.In Greater China,having a good understanding of the market and of the latest government policies is certainly key to the success in terms of data centre investment,development and operation.Recently,however,there is a third aspect to which investors and operators of data centres in t

7、he country are paying close attention to further ensure business success and that is optimal asset management.The optimal asset management of data centres involves a number of aspects,including cost savings,performance improvement,consolidation and best practice encouragement.Asset ManagementData Ce

8、ntres in Greater China 3INTRODUCTIONThis report focuses on three major points to deliberate of late when investing in data centre projects in the Greater China market.The report begins by centring on the first point to consider The data centre market in the region before looking at the second consid

9、eration point Data centre-related government policy in the region.Finally,data centre asset management in the Greater China market is the third consideration point to be examined,with the report wrapping things up with some key points raised in the narrative to take away.4 CUSHMAN&WAK E F IE L DTHE

10、THREE POINTS TO PROCESSWhen considering the overall data centre market in Greater China,the major city markets can be subdivided into four groups:Our Maturity Index tracks 30 data centre markets across Asia Pacific*to compare their current maturity status as well as their evolution over the next fiv

11、e to seven years.It is a statistical comparison that evaluates markets on 21 parameters,including the IT MW capacities of each markets operational,under construction,planned and land banked stages of development,the summation of which is visually indicated by the size of each markets circle on the g

12、raph.The index also factors In vacancy rates,number and average size of data centres based on their status,number of operators that have operational data centres in each*For all analysis,Asia Pacific region includes Australia,the Chinese mainland,Hong Kong,India,Indonesia,Japan,Malaysia,New Zealand,

13、Philippines,Singapore,South Korea,Taiwan,Thailand and Vietnam only.Those that are powerhouse markets such as Beijing and Shanghai;Those that are established markets such as Hong Kong;Those that are developing markets such as Guangzhou,and;Those that are emerging markets such as Taipei(Figure 1).Sour

14、ce:Cushman&WakefieldFigure 1:Cushman&Wakefield Asia Pacific data centre maturity index(Q4 2023)market,and the new operators that are in progress to enter the market.These data points are stacked into a parameter matrix and weighted to derive their overall growth score the higher the growth score,the

15、 more evolved the market.The commonly used references to data centre markets as primary and secondary have been broken down further into the below four categories:Powerhouse;Established;Developing,and;Emerging.The MarketEmergingDevelopingSECONDARYPRIMARYEstablishedPowerhouseGROWTH SCORESingaporeData

16、 Centres in Greater China 5GOVERNMENTAs the primary markets in Asia Pacific continue to grow rapidly,its secondary markets are expected to more than double their current cumulative operational capacity from 1.28GW to 2.96GW upon the delivery of all under construction and planned pipeline assets.We a

17、nticipate that many markets across Asia Pacific,including those in Greater China,will witness accelerated growth owing to technological enhancements such as the adoption of cloud services and AI,deployment of 5G networks across geographies,increasing mobile and internet penetration,and ongoing gover

18、nment and enterprise digitisation initiatives,with such factors expected to drive markets to move across the development segments(Figure 2).Looking specifically at the Greater China market,according to the China Academy of Information and Communications Technology(CAICT),the Chinese mainlands data c

19、entre market volume exceeded RMB150 billion in 2021 and is expected to reach RMB243 billion by the end of 2023.Meanwhile,the Beijing-Tianjin-Hebei region,the Yangtze River Delta region and Greater Bay Area continue to maintain strong data centre construction impetus,both in terms of the number of ne

20、w cabinets and aggregate inventory(Figure 3).1/GREATER CHINA2/AUSTRALIA3/JAPAN5/SINGAPORESource:Cushman&WakefieldFigure 2:Asia Pacific data centre market Key indicators and ranking per market size(Q4 2023)The Chinese MainlandIN OPERATION3,956MWUC952MWHong KongIN OPERATION605MWUC215MWTaiwanIN OPERATI

21、ON257MWUC49MWIN OPERATION1,168MWUC365MWIN OPERATION1,286MWUC346MW4/INDIAIN OPERATION1,074MWUC1,147MW6/KOREAIN OPERATION591MWUC246MW7/INDONESIAIN OPERATION222MWUC147MW8/MALAYSIAIN OPERATION189MWUC224MW9/PHILIPPINESIN OPERATION60MWUC74MW10/NEW ZEALANDIN OPERATION75MWUC13MW11/VIETNAMIN OPERATION45MWUC1

22、5MW12/THAILANDIN OPERATION65MWUC77MWIN OPERATION973MWUC45MW6 CUSHMAN&WAK E F IE L DPOLICYGOVERNMENTFigure 3:Greater China Data centre market snapshot and key indicators(Q4 2023)AVERAGE GDP GROWTH POPULATION GROWTH DATA CENTRE MARKET GROWTH FORECAST6.7%in last 5 year6.0%in last 10 years5.04%YOY till

23、end of 2024PRIMARY MARKETSSECONDARY MARKETS-1.48 Y-o-Y population growth in 2022-202319%CAGR between 2021-2026GREATER CHINABEIJINGTIANJINSHANGHAIHANGZHOUNANJINGCHONGQINGCHENGDUGUANGZHOUSHENZHENHONG KONGTAIPEISource:National Bureau of Statistics(China),Cushman&Wakefield67/3304,818MW2,054MW14%1,216MWN

24、o.of operators/data centresIn operationPlannedVacancyUnder constructionQ4 2023 KEY INDICATORSCountryGreater ChinaSingaporePopulationLive MWPop./MW1,456,817,210302,3706,2754,8189626,036,613Data Centres in Greater China 7In any data centre market,quality data centre infrastructure is an important reso

25、urce to support the development of its digital economy and the Greater China market is no exception.Quality data centre infrastructure plays an important role in realising digital transformation,fostering future industries,and creating new momentum for economic development.Knowing this and picking o

26、ut a significant policy for the Greater China region,in October 2023,six government departments in the Chinese mainland,including the Ministry of Industry and Information Technology,the Office of the Central Cyberspace Affairs Commission Cyberspace Administration of China,the Ministry of Education o

27、f the Peoples Republic of China,the National Health Commission of Peoples Republic of China,the Peoples Bank of China,and the State-owned Assets Supervision and Administration Commission of the State Council,issued The Action Plan for Quality Development of Computational Power Infrastructure(includi

28、ng data centre infrastructure)(hereinafter referred to as“The Action Plan”).The basic principles and goals of the plan through to 2025 are ensuring:A computational power infrastructure layout that is optimised(Figure 4),and;A computational power network that is sustainable,safe and reliable.What are

29、 the basic principles and main elements of the Action Plan?Government PolicySource:Asia Briefing,Cushman&Wakefield ResearchFigure 4:The Chinese mainland:Computing hubs and data centre clusters(2023)*Yangtze River Delta Ecological Green Integrated Development Demonstration Zone,ShanghaiInner Mongolia

30、 Hub Chengdu-Chongqing Hub Guizhou Hub Ningxia Hub Guangzhou-Hong Kong-Macau Hub Gansu Hub Beijing-Tianjin-Hebei(Jing-jin-ji)Hub Yangtze River Delta Hub Helin Geer Cluster,Inner MongoliaZhangjiakou Cluster,HebeiZhongwei Cluster,NingxiaQinyang Cluster,GansuTianfu Cluster,SichuanChongqing Cluster,Chon

31、gqingGuian Cluster,GuizhouShaoguanu Cluster,GuangdongWuhu Cluster,AnhuiYangtze River Delta Cluster,Shanghai*8 CUSHMAN&WAK E F IE L DUnder the Action Plan,what specific work will be deployed to improve the comprehensive supply system of computational power?Under the Action Plan,what will be the speci

32、fic goals for computational power infrastructure development over the next three years?The Action Plan proposes quantitative targets for development by 2025 in four areas,namely:1.Computational Power:The scale of computational power is targeted at over 300 EFLOPS,and the share of intelligent computa

33、tional power to reach 35%;2.Network Power:Directly connected network transmission speed of no more than 1.5 times the theoretical delay to be achieved between data centre clusters at national hub nodes;the coverage rate of optical transport networks(OTNs)at key application sites to reach 80%;backbon

34、e and metropolitan area networks to fully support IPv6;and the use of new technologies,such as SRv6,to account for 40%of all applications;3.Storage Power:The total amount of storage to be more than 1,800 EB,with more than 30%of the system being advanced storage capacity;4.Application Enablement:More

35、 than 30 application benchmarks to be created in each of the key areas of industry,finance,healthcare,transport,energy and education.Under the Action Plan,what are the specific arrangements for strengthening the efficient and flexible security of data centre storage capacity?How will the Action Plan

36、 promote the sustainable development of computational power infrastructure(including data centre infrastructure)?The Action Plan is also looking to further develop edge computational power capacity and promote efficient and synergistic computational power capacity linkages between the countrys easte

37、rn and western regions.Moreover,the plan is looking to strengthen the monitoring of indicators such as data centre power usage effectiveness(PUE)as well as building out capacity to assist the Chinese mainlands enterprises as they“go global”.Among several initiatives,the Action Plan is looking to imp

38、rove storage capacity as well as to promote the innovative development of storage technologies such as all-flash array(AFA)memory to achieve advancement in industry storage capacity.The Action Plan will focus on guiding the green development of computational power infrastructure.It will look to impr

39、ove resource utilisation and computational power efficiency by offering guidance on the optimal design and construction of computational power infrastructure as well as guidance on technology selection,equipment selection,green energy usage,etc.Data Centres in Greater China 9How will the implementat

40、ion of the Action Plan be ensured?The implementation of the Action Plan will require governments at all levels,as well as basic telecommunication operators,third-party data centre service providers,internet enterprises and other types of market players,to give full play to their respective strengths

41、 in the overall construction and operation of computational power infrastructure in the Chinese mainland market.Specifically,the Action Plan proposes the:1.Strengthening of development co-ordination:Including a clear division of labour to organise and guarantee key tasks.2.Increasing of financial su

42、pport:for the innovative development of computational power infrastructure.Secondly,the plan will look to promote the declaration and issuance of real estate investment trust funds in the field of infrastructure for eligible projects(Figure 5),and,thirdly,the plan will encourage financial institutio

43、ns to increase credit support for green computational power infrastructure.3.Deepening of communication and collaboration:Full play will be given to the strengthening of related industry and organisational alliances,exchanges and standards.4.Strengthening of platform support:by effectively promoting

44、 upstream and downstream technological innovation and collaboration and resource sharing within the industrial chain.Source:Wind,Cushman&Wakefield ResearchNote:*Chinese mainland infrastructure REITs contain industrial parks,affordable housing,port warehousing,turnpikes,power generation infrastructur

45、e and municipal engineering infrastructure.*The data was published on 31 December in 2021 2022 and 2023.RMB BillionFigure 5:The Chinese mainland infrastructure REITs market volume and number(2021-2023)202120222023908070605040302010035302520151050Market Volume(RMB Billion)Number of Infrastructure REI

46、Ts10 CUSHMAN&WAK E F IE L DIn Greater China,having a good understanding of the market and of the latest government policies is certainly key to the success in terms of data centre investment,development and operation.Recently,however,there is a third aspect to which investors and operators of data c

47、entres in the country are paying close attention to further ensure business success and that is optimal asset management.The optimal asset management of data centres involves a number of aspects,including cost savings,performance improvement,consolidation and best practice encouragement.While there

48、are many good practices surrounding data centre operations and management,the selected practices included here are effective high-value and efficiency-boosting options that will enable data centre investors and operators to make the most progression towards reaching their asset management optimisati

49、on goals.Use a data centre infrastructure management(DCIM)software tool to manage the data centre(Figure 6);Systematise power monitoring by sensors/devices/software to measure power demand and usage,and;Establish wireless sensors/devices/software to measure the real-time environment.Practice goal ex

50、planation:%of GFA that has power monitoring in place Example goal:Preferably 100%Measures to adopt:Asset ManagementPractice 1:Energy MonitoringSource:Schneider Electric,Cushman&Wakefield ResearchFigure 6:DCIM One-stop view of the entire data centreRackRowRoomBuildingDCIMData Centres in Greater China

51、 1 1 Position servers in distinct hot and cold aisles to avert air conflation;Bed in variable speed drives to match energy usage to workload;Allow the supply air to reach higher temperatures to lessen workload demand on the chiller;Amplify the allowable humidity range to reduce humidification/dehumi

52、dification needs;Enhance airflow with blanking panels,grommets,and cable and tile management;Apply free cooling to support energy-intensive mechanical chillers;Apply direct liquid cooling to chill hot exhaust air more efficiently,and;Update lighting systems to reduce energy costs.Post virtualisation

53、,right-size to match up infrastructure power use with IT workload(Figure 8).Practice goal explanation:Amount of total data centre energy utilise by IT equipment(determined on a per-data centre basis)(Figure 7)Example goal:Preferably 1.5(Preferably 1.2 for new data centres)Measures to adopt:Practice

54、goal explanation:Proportion of operating systems(OS)to physical servers Example goal:Preferably 4 Measures to adopt:Source:Park Place Technologies,Cushman&Wakefield ResearchFigure 8:Data centres Traditional vs VirtualisedSource:Cushman&Wakefield ResearchFigure 7:Data centre PUE calculationTotal Faci

55、lity PowerIT Equipment PowerPractice 2:Power Usage Effectiveness(PUE)Practice 3:VirtualisationX CoresXX GB RamXXXGB HDD30%UtilisationX CoresXX GB RamXXXGB HDD6%UtilisationX CoresXX GB RamXXXGB HDD60%UtilisationTraditionalVirtualisedHypervisor12 CUSHMAN&WAK E F IE L D Shut down ghost servers to mitig

56、ate space and energy costs,and(Figure 9);Employ server power management technology to ensure an enhanced power balance.Use rack and row-based cooling to avoid isolated capacity(Figure 10).Practice goal explanation:%of time busy(measured as 1%of time spent inactive),measured directly by continuous,au

57、tomated monitoring software,discounted by the fraction of data centres fully equipped with automated monitoring Example goal:Preferably 65%Measures to adopt:Practice goal explanation:%Portion of total GFA in tiered data centres that is actively used for racks that include IT equipment Example goal:P

58、referably 80%Measures to adopt:Source:Cushman&Wakefield ResearchPractice 4:Data Centre UsagePractice 5:Facility UsageSource:Cushman&Wakefield ResearchFigure 9:Data centre operational issues associated with ghost serversFigure 10:Data centre rack and row-based coolingRising Sustainability Costswith g

59、host serversWasted SpaceSecurity RisksPotential Profits Going to WasteData Centres in Greater China 1 3 Suitably and systematically train facility management employees to augment operational efficiency and effectiveness,and;Measure and track to understand optimal performance over time(Figure 11).Sec

60、ure sustainable IT equipment and software to save energy and lessen the facilitys environmental footprint(Figure 12).Measures to adopt:Measures to adopt:Practice 6:Facility/Operations ManagementPractice 7:SustainabilitySource:Cushman&Wakefield ResearchSource:,Cushman&Wakefield ResearchFigure 11:Data

61、 centre operations management Selected items to consider and outcome Figure 12:Environmental impact Selected industry contribution to global greenhouse gas emissions(2023)Data CentresAviationShippingRice Cultivation Tobacco&Food Processing4%3%2%1%0%Data Centre OperationsCustomer ManagementCapacity M

62、anagementAsset and Configuration ManagementProduct Lifecycle ManagementIncident ManagementAvailability ManagementSecurity and Fire ManagementCost ManagementHealth and Safety ManagementSupplier ManagementChange ManagementEnergy and Resource ManagementOperational Information and ParametersData Centre

63、Strategy3.7%2.5%14 C USHMAN&WAK E F IE L D Apply a layered security tactic to shield the physical and cybernetic facility features;Establish a disaster recovery strategy to safeguard operations and ensure operational continuation in the event of a crisis,and;Establish a potential human-instigated th

64、reat checklist to further lessen facility operational security weakness.(Figure 13).Enhance automation to mitigate human error and boost uptime(Figure 14).Measures to adopt:Measures to adopt:Practice 8:SecurityPractice 9:Facility,Equipment and Software DependabilitySource:Fortinet,Cushman&Wakefield

65、ResearchSource:Data Centre Talk,Cushman&Wakefield ResearchFigure 13:Data centre security access examplesFigure 14:Data centre building automation examplesA comprehensive check in process that requires government-issued identification Special badges for visitorsA physical key that can provide access

66、to areas where equipment is run or storedBadge key cards,which can be verified before going through doors between sensitive areasRetina or facial scansFingerprint identificationREQUIREMENTS TO ACCESS DATA CENTER EQUIPMENT CAN INCLUDEProcess CoolingPower ManagementWaterUPSLightingAccess ControlAlarms

67、CCTVSecurityComfort CoolingAlternative EnergyPower DistributionRemote System AccessData Centres in Greater China 1 5 Increase automation capabilities to avoid human error and increase uptime(Figure 15).Measures to adopt:Practice 10:Operational ChangeSource:Uptime Institute,Cushman&Wakefield Research

68、Figure 15:Data centre downtime causes29%24%15%12%10%5%5%29%UPS Batteries24%Human and Accidental Errors15%Water/Heat/CRAC Failure12%Weather Related10%Generator Failure5%IT Equipment Failure5%Others16 CUSHMAN&WAK E F IE L DSource:Cushman&Wakefield ResearchThe MarketGovernment PolicyAsset Management Th

69、e Action Plan is also looking to further develop edge computational power capacity and promote efficient and synergistic computational power capacity linkages between the countrys eastern and western regions;While there are many good practices surrounding data centre operations and management,it is

70、important for data centre investors and operators to select data centre asset management practices that are effective high-value and efficiency-boosting options that will enable data centre investors and operators to make the most progression towards reaching their asset management optimisation goal

71、s.The Beijing-Tianjin-Hebei region,the Yangtze River Delta region and Greater Bay Area continue to maintain strong data centre construction impetus,both in terms of the number of new cabinets and aggregate inventory.Moreover,the plan is looking to strengthen the monitoring of indicators such as data

72、 centre power usage effectiveness(PUE)as well as building out capacity to assist the Chinese mainlands enterprises as they“go global”.Data Centres in Greater China 1 7BUSINESS CONTACTSTony SuManaging Director,Head of Industrial&Logistics Property Services,CAndrew ChanManaging Director,Head of Valuat

73、ion&Advisory Services,Greater CJohn SiuManaging Director,Hong KAlton WongHead of Valuation and Advisory Services,Greater ChinaCo-Head of Sustainability ServicesGreater CFrancis LiInternational Director,Vice President,Greater China,Head of Capital Markets,Greater CDavid ShiManaging Director,Head of P

74、roject&Development Services,ChinaCo-Head of Sustainability ServicesGreater CJonathan WeiPresident,Project&Occupier Services,CDavid ChenDeputy Manager,Valuation&Advisory Services,T18 CUSHMAN&WAK E F IE L DData Centres in Greater China 1 920 CUSHMAN&WAK E F IE L DThis report was authored by Shaun Brod

75、ie,Head of Research Content,Greater China,and Head of Research,East China and designed by Tenny Shen.Analysis support was provided by Chao Guan.Proofreading services were provided by Simon Graham.To better serve our clients our China Research Team has established Centres of Excellence in various foc

76、us areas,such as Capital Markets,Occupier Markets,Office,Industrial and Retail.Shaun leads the Research Centre of Excellence for Greater China Occupier Research.If you have any queries related to Occupier Research in Greater China,please contact:RESEARCH TEAMShaun BrodieHead of Research Content,Grea

77、ter ChinaHead of Research,East CEason LeeAssociate Director of Research TRosanna TangHead of Research Hong KSabrina WeiHead of Research North CIvy JiaHead of Research West CXiaoduan ZhangHead of Research South&Central CAbout Cushman&WakefieldCushman&Wakefield(NYSE:CWK)is a leading global commercial

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79、n,consulting,project&development services,capital markets,project&occupier services,industrial&logistics,retail and others.It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity,Equity and Inclusion(DEI),sustainability and more.For additio

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