Data Center Infrastructure,CM Electronics Co., Ltd

Data Center Infrastructure

The demand for data centers is robust, and the market is concentrated
This year, major internet companies such as Tencent and Alibaba have seen a significant increase in demand for servers. At the same time, perhaps influenced by the large-scale enterprises' migration to the cloud, the market demand from small and medium-sized customers has shrunk. With the popularity of public clouds and the trend of enterprise information systems moving to the cloud, the number of customers who previously rented standalone cabinets and small-scale servers has decreased. The demand for data centers led by public cloud IaaS service providers has become increasingly vigorous, leading to a higher degree of market concentration.

According to the survey, in 2017, there were 386 hyperscale data centers globally, accounting for approximately 32% of the total server count in the global data center market. By 2021, the number of hyperscale data centers is expected to reach 628, with the server count proportion increasing to 53%.

In 2018, the number of hyperscale data centers reached 430, with the United States accounting for approximately 40% and China only about 8%. As of the end of 2016, the proportion of standard racks in hyperscale data centers among those under construction in China was nearly 40%, indicating that hyperscale data centers are also the mainstream of China's future data center construction.

AI servers are developing rapidly
The market for AI servers has already taken shape, with numerous enterprises spanning from upstream suppliers to downstream service providers.

The artificial intelligence (AI) industry is experiencing rapid growth, with significant potential for demand growth in AI servers. In 2017, the global AI industry reached a scale of 218 billion yuan, marking a year-on-year increase of 15%. It is expected to reach 270 billion yuan in 2018. Looking at the domestic market, China's AI market size stood at 152.1 billion yuan in 2017, and it is anticipated to surpass 200 billion yuan in 2018, representing a rapid growth rate of 57%.

From 2015 to 2018, the global and Chinese artificial intelligence (AI) market scales both exhibited an accelerated growth trend, necessitating substantial computing power support from AI servers, which present vast growth potential. From 2017 to 2021, the compound annual growth rate (CAGR) of China's generalized AI servers stood at 24.9%, and it is projected to reach $25.1 billion by 2021.