NEWS
2023-10-10
Kehua Ranked NO.1 Among Large-scale Retail Data Center Service Provider with An Average Cabinet Utilization Rate of 80%
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Recently, Frost & Sullivan released a report titled "Independent Market Research of China's Data Center Industry," providing a comprehensive analysis of the current development and future trends of the data center industry in China. Among the findings, Kehua ranked NO.1 among large retail data center enterprises with an average cabinet utilization rate of 80%.
01
Overview of the Data Center Market in China: Rapid Development of Data Center Cabinet Construction
In recent years, China has made significant progress in the development of advanced technologies such as cloud computing, AI, and 5G, leading to an increasing demand for computing power. With the deepening implementation of the eight national computing power hub node construction plans, there has been a surge in new data center construction projects across the country. According to statistics, the scale of data center cabinet construction in China has been steadily expanding, with rapid growth in large-scale data centers. As of the end of 2022, the total number of data center cabinets in use in China has reached 6.7 million (calculated based on standard cabinets with a power capacity of 2.5kW), with an average compound annual growth rate of over 30% in the past five years.
Source: Ministry of Industry and Information Technology, Frost & Sullivan Analysis
02
Overview of Cabinet Utilization in China's Data Center Industry
According to statistics, while the scale of racks in data centers in China is growing rapidly, the industry is facing a challenge of low cabinet utilization. There are also issues of supply-demand mismatch, mismatched requirements, and lack of information flow in data centers. In 2022, the average cabinet utilization rate in China's data centers was about 58%, indicating room for improvement. On the demand side, the demand for cross-regional computing power has not been fully tapped. On the supply side, many racks in western regions have not been fully utilized, and the improvement in rack utilization in these regions will drive the growth of the national average.
Data source: Ministry of Industry and Information Technology, Frost & Sullivan analysis
03
Overview of Cabinet Utilization in China's Large-scale Retail Data Center Service Provider
Compared to wholesale data center enterprises that sell in bulk based on modules, retail data centers typically rent out individual racks as the smallest unit. As a result, the cabinet utilization rate of wholesale enterprises often depends on the scale of demand from large customers, while the cabinet utilization rate of retail enterprises is determined by their own refined management and operational capabilities.
Source: Frost & Sullivan analysis
Currently, China's retail third-party neutral data center service industry is relatively concentrated, with major players including Century Internet, GDS, Kehua, OneFei Data, and UCloud. There are also many small and medium-sized service providers, leading to intense competition in the industry. The cabinet utilization rate of most small and medium-sized enterprises is relatively low, while the top retail enterprises have strong sales, service, and operation capabilities, resulting in a relatively higher average cabinet utilization rate. According to the overall average rack utilization rate in 2022, Kehua is the top large retail data center enterprise in China, with an average cabinet utilization rate of 80%.
About Kehua
Kehua is a leading high-tech company in China that focuses on providing green data centers, critical power, renewable energy products and solutions. It is also a listed company on the Shenzhen A-share market. With over 10 years of experience in data center construction and operation management, Kehua has the capability to provide comprehensive data center services, including general hosting, large-scale customization, agile delivery, and high computing power. Kehua continuously improves its products and services to empower digital transformation in various industries.
About Frost & Sullivan
Frost & Sullivan, a global growth consulting firm, combines 62 years of global consulting experience with a global perspective to help clients accelerate the pace of corporate growth and help them achieve benchmark positions in growth, innovation and leadership in their industries. Frost & Sullivan provides a full range of investment and financing services and other professional consulting services, including due diligence, valuation, appraisal, strategy consulting, management consulting, planning consulting, technology consulting, financial consulting, industry consulting, etc. Frost & Sullivan has a deep understanding of the global capital markets and corporate consulting services.
