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China
August 2026

China Data Center Server Market Size, Share & Forecast, By Server Type, Processor Architecture & End-Use Industry, 2026-2031

2031

The China Data Center Server Market worth USD 48,800 million in 2025 is growing at a CAGR of 17.23% to reach USD 126,675 million by 2031. IEIT Systems Co., Ltd., New H3C Technologies Co., Ltd., Huawei Technologies Co., Ltd., xFusion Digital Technologies and Lenovo Group Limited are the major companies operating in this market.

Report Details

Base Year

2025

Pages

82

Region

China

Author

Ken Research

Product Code
KR-RPT-V02-08040

CHAPTER 1 - MARKET SUMMARY

Market Overview

The China Data Center Server Market converts demand for cloud services, artificial intelligence, internet platforms, telecommunications and enterprise digitization into server-hardware procurement by hyperscalers, carriers, data-center operators and institutional users. China sold 4.727 million servers during 2025, while AI servers reached 0.761 million units, demonstrating how accelerator-rich workloads are reshaping the industry's value pool despite representing a smaller proportion of shipment volume.

Demand remains concentrated in eastern economic and digital clusters, although compute-intensive workloads are progressively migrating inland. Eastern China generated 50.9% of national telecommunications revenue in 2025, while the Yangtze River Delta alone represented 23.2%. The concentration of cloud, internet, financial and manufacturing customers around Beijing, Shanghai, Jiangsu, Zhejiang and Guangdong supports high server refresh intensity and premium configurations.

Market Value

USD 48,800 million

2025

Dominant Region

East China

2025

Dominant Segment

AI Accelerator Servers

2025, fastest growing

Total Number of Players

17,900

Future Outlook

The China Data Center Server Market is projected to expand from USD 48,800 Mn in 2025 to USD 126,675 Mn by 2031. The historical 2020-2025 CAGR is estimated at 21.81%, with 2025 representing a major value inflection as AI-server revenue expanded substantially faster than unit shipments. Forecast growth moderates to a 17.23% CAGR during 2026-2031 as the comparison base rises, but spending remains structurally supported by GPU-rich inference systems, national computing hubs, enterprise private AI, carrier edge infrastructure and continuous cloud capacity expansion.

Future growth will increasingly come from higher server value per deployed unit rather than shipment growth alone. Accelerator density, memory capacity, interconnect bandwidth, liquid cooling, domestic processor adoption and rack-scale integration are expected to lift blended ASPs through 2031. Server shipment growth is projected to remain in the high-single-digit range by the end of the forecast period, while value growth remains materially faster. Vendors with integrated silicon support, firmware engineering, thermal architecture, systems integration and nationwide after-sales capabilities should capture a disproportionate share of the expanding profit pool.

17.23%

Forecast CAGR

$126,675 Mn

2030 Projection

Base Year

2025

Historical Period

2020-2025

Forecast Period

2026-2031

Historical CAGR

21.81%

CHAPTER 2 - SCOPE OF REPORT

Scope of the Market

Click to Explore Interactive Mind Map

CHAPTER 3 - Key Stakeholders

Key Target Audience

Key stakeholders who can leverage from this market analysis for investment, strategy, and operational planning.

Investors

CAGR, AI exposure, capex intensity, supply risk

Corporates

server ASP, architecture choice, TCO, refresh cycles

Government

localization, cybersecurity, energy efficiency, computing resilience

Operators

rack density, cooling, utilization, workload capacity

Financial institutions

project finance, vendor risk, demand stability, ROI

What You'll Gain

  • Market sizing and trajectory
  • Policy and compliance mapping
  • Technology transition indicators
  • Segment structure and levers
  • Competitive landscape shortlist
  • CEO-grade risk priorities

80+

Pages of insights

CHAPTER 4 - Market Size & Growth

Market Size, Growth Forecast and Trends

This section evaluates the historical market size, analyzes year-over-year growth dynamics, and presents forecast projections supported by market performance indicators and demand-side drivers.

Historical & Projected Market Size ($ Million)

Year-over-Year Growth Rate (%)

Market Value vs Volume Growth (%)

Historical Market Performance (2020-2025)

Historical performance reflects a transition from conventional x86-led refresh cycles toward accelerator-intensive infrastructure. Growth moderated to 8.1% in 2023 before recovering to 14.3% in 2024 and accelerating materially in 2025. The inflection was driven by generative AI training, large-scale inference and intelligent-computing center procurement. National server sales increased 55.3% by value in 2025 while units increased 14.7%, confirming that system mix and accelerator content, rather than shipments alone, became the main revenue driver.

Forecast Market Outlook (2026-2031)

The market is forecast to expand at 17.23% CAGR through 2031 as AI inference, private AI infrastructure, cloud growth and national computing-network investments broaden demand. Value growth is expected to remain above shipment growth because GPU count, memory capacity, high-speed networking and liquid-cooling integration increase server system ASPs. Growth gradually moderates from 18.0% in 2026 to 16.3% in 2031, reflecting a higher installed base and improved infrastructure utilization while still substantially exceeding conventional enterprise hardware replacement cycles.

CHAPTER 5 - Market Data

Market Breakdown

The China Data Center Server Market is shifting from volume-oriented commodity computing toward higher-value intelligent-computing systems. For CEOs and investors, the critical variables are shipment scale, AI-server revenue mix and the widening ASP gap between conventional and accelerator-rich configurations.

Market Breakdown

Historical Data (2020-2024) • Base Data (2025) • Forecast Data (2026-2031)

Year
Market Size (USD Mn)
YoY Growth (%)
Server Shipments (Mn Units)
AI Server Revenue Mix (%)
Blended Server ASP (USD/Unit)
Period
2020$18,200 Mn+-2.6018%
$#%
Forecast
2021$21,600 Mn+18.7%2.8922%
$#%
Forecast
2022$25,800 Mn+19.4%3.2029%
$#%
Forecast
2023$27,900 Mn+8.1%3.3238%
$#%
Forecast
2024$31,900 Mn+14.3%3.5049%
$#%
Forecast
2025$48,800 Mn+53.0%3.7872%
$#%
Forecast
2026$57,584 Mn+18.0%4.1876%
$#%
Forecast
2027$67,834 Mn+17.8%4.6079%
$#%
Forecast
2028$79,705 Mn+17.5%5.0581%
$#%
Forecast
2029$93,334 Mn+17.1%5.5083%
$#%
Forecast
2030$108,921 Mn+16.7%5.9584%
$#%
Forecast
2031$126,675 Mn+16.3%6.3885%
$#%
Forecast

Server Shipments

4.727 million units, 2025, China total server industry. Shipment scale provides the volume ceiling for data-center-deployed hardware; national shipments increased 14.7% in 2025, materially slower than revenue growth and confirming strong premiumization.

AI Server Revenue Mix

USD 35,200 million equivalent, 2025, China AI server industry. AI servers generated more than half of national server revenue despite representing only about one-sixth of units, shifting profit pools toward accelerator-rich systems, memory and cooling.

Blended Server ASP

approximately USD 46,000 per AI server, 2025, China. The implied AI-server ASP from reported unit and revenue data is several times conventional-server pricing, explaining why value growth can remain structurally ahead of unit growth.

CHAPTER 6 - Segmentation

Market Segmentation Framework

Comprehensive analysis across key dimensions providing insights into market structure, customer preferences, workload requirements and server distribution patterns.

No of Segments

7

Dominant Segment

Server Type

Fastest Growing Segment

Processor Architecture

Server Type

General-Purpose Rack Servers
$%
AI Accelerator Servers
$%
Blade and Modular Servers
$%
Edge Microservers
$%

Processor Architecture

x86-64
$%
ARM64
$%
LoongArch and SW64
$%
Other RISC and Power Architectures
$%

Application

AI Training and Inference
$%
Cloud Virtualization
$%
High-Performance Computing
$%
Storage and Data Processing
$%

End-Use Industry

Internet and Cloud Services
$%
Telecommunications and IDC Services
$%
Government and Public Services
$%
Financial and Enterprise Sectors
$%

Price Tier

Volume General-Purpose Systems
$%
Performance Computing Systems
$%
Accelerator-Dense Premium Systems
$%
Rack-Scale AI Systems
$%

Sales Channel

Direct OEM Enterprise Sales
$%
ODM and Hyperscaler Direct
$%
Systems Integrators
$%
Authorized Distribution
$%

Geography

East China
$%
North China
$%
South China
$%
Central and West China
$%

Key Segmentation Takeaways

Comprehensive analysis across all extracted segmentation dimensions providing insights into market structure, customer requirements, technology choices and distribution patterns.

Server Type

Server type is the principal revenue-allocation dimension because AI accelerator configurations carry materially higher system values than general-purpose equipment. AI Accelerator Servers increasingly dominate spending as large-model training and inference drive GPU density, while general-purpose rack servers remain the volume foundation for cloud, storage, databases and routine enterprise workloads.

Processor Architecture

Processor architecture is undergoing the strongest structural transition as procurement teams balance x86 software compatibility with ARM efficiency, domestic technology availability and security requirements. x86 remains deeply embedded in enterprise workloads, while ARM64, Hygon-compatible systems, LoongArch and other domestic computing stacks gain strategic relevance in government, telecom, cloud and sovereign-computing procurement.

CHAPTER 7 - Regional Analysis

Regional Analysis

China ranks first among the selected Asian peer markets by 2025 data-center-server expenditure and combines a larger domestic compute base with one of the fastest forecast growth trajectories. Japan remains the closest large-market comparator, while India, South Korea and Taiwan provide relevant benchmarks for data-center expansion, semiconductor capability and server demand.

Focus Country Ranking

1st

Focus Country Market Size

USD 48,800 Mn (2025)

China CAGR (2026-2031)

17.23%

Regional Analysis (Current Year)

Regional Analysis Comparison

MetricChinaJapanIndiaSouth KoreaTaiwan
Market SizeUSD 48,800 MnUSD 23,080 MnUSD 6,550 MnUSD 3,360 MnUSD 1,100 Mn
CAGR (%)17.23%16.66%7.61%8.01%7.00%
Planned / Upcoming IT Load by 2029 (MW)3,3002,0004,7002,019300
Planned Racks by 2029 (000 Units)599.4500.0710.0285.876.0

Market Position

China ranks first in the selected peer set, supported by the world's second-largest national computing-power base and a server industry that sold 4.727 million units in 2025.

Growth Advantage

China's 17.23% forecast CAGR is slightly above Japan's 16.66% and materially above South Korea's 8.01%, reflecting stronger AI-server expenditure and national compute infrastructure deployment.

Competitive Strengths

China combines 10.85 million standard computing-center racks in mid-2025, eight national computing hubs and deep domestic server manufacturing, creating scale advantages in procurement, systems engineering and localization.

CHAPTER 8 - INDUSTRY ANALYSIS

Growth Drivers, Challenges & Opportunities

Comprehensive analysis of key factors shaping the China Data Center Server Market, including growth catalysts, operational challenges, and emerging opportunities across manufacturing, distribution and enterprise-compute segments.

Growth Drivers

Rapid AI Server Procurement

  • AI-server shipments reached 0.761 million units in 2025, China, generating demand for GPUs, high-bandwidth memory, high-speed fabrics and premium power systems, allowing integrated server vendors to capture higher value per deployment.
  • Internet, telecommunications, government, IDC operators and financial institutions represented 90.5% of AI-server demand in 2025, China, creating identifiable enterprise account pools for server OEMs and integrators.
  • AI servers generated approximately USD 35,200 million equivalent revenue in 2025, China, pushing OEM investment toward accelerator-rich supernodes, firmware optimization and liquid-cooled rack-scale platforms.

Expansion of National Computing Infrastructure

  • The three major telecom operators provided 938,000 external-service data-center racks at end-2025, creating recurring server replacement and capacity-expansion demand among carrier and cloud ecosystems.
  • Carrier-dispatchable intelligent computing capacity exceeded 94.4 EFLOPS at end-2025, up 87.6%, supporting continued procurement of high-density accelerator servers and associated interconnect infrastructure.
  • China's national computing plan established 8 national computing hubs and 10 data-center clusters, directing large-scale workloads toward coordinated infrastructure zones and supporting standardized bulk server deployments.

Cloud, 5G and Distributed Compute

  • Cloud computing, big data, mobile IoT and data-center services generated USD-equivalent emerging-business revenue representing 25.7% of telecom revenue in 2025, reinforcing operator investment in programmable compute infrastructure.
  • China had 2.064 million 5G RedCap-capable base stations in 2025, expanding lower-power industrial IoT use cases that require distributed edge processing and compact server infrastructure.
  • East China represented 50.9% of national telecommunications revenue in 2025, preserving strong demand for latency-sensitive server deployments near major enterprise and internet clusters despite inland compute migration.

Market Challenges

Advanced Accelerator Supply Restrictions

  • Restrictions on advanced accelerators can extend deployment cycles for training clusters, forcing OEMs to redesign servers around alternative processors and increasing validation, software-porting and integration expenditure. AI servers already represented more than half of national server sales value in 2025.
  • Server OEMs must support heterogeneous processor roadmaps while maintaining application compatibility, increasing engineering complexity precisely as national server sales grew 55.3% by value in 2025.
  • Supply risk strengthens buyer preference for multi-architecture qualification and domestic substitutes, but fragmented software ecosystems can raise migration costs for data-center operators managing millions of deployed server instances. China exceeded 10.85 million standard computing-center racks in 2025.

Power and Cooling Constraints

  • National policy targeted average data-center PUE below 1.5 by end-2025, making server energy efficiency and thermal density direct procurement considerations rather than secondary operating parameters.
  • New green-data-center recommendations require minimum 60% rack utilization in 2025, limiting economically weak overbuilding and favoring server designs that increase compute output within constrained power envelopes.
  • Beijing's optimization program targets average annual PUE below 1.35 by 2027, increasing retrofit requirements for legacy urban facilities and creating capital-allocation trade-offs between server replacement and cooling modernization.

Component Inflation and System Complexity

  • Worldwide x86 server spending reached USD 298,560 million in 2025, creating global competition for DRAM, NAND, CPUs, power components and networking silicon that can pressure Chinese OEM procurement costs.
  • Non-x86 global server spending reached USD 154,971 million in 2025, demonstrating how alternative architectures and AI systems are expanding simultaneously and increasing qualification requirements across supply chains.
  • China's server revenue increased substantially faster than units in 2025, with value up 55.3% versus shipment growth of 14.7%, raising working-capital requirements for OEMs carrying higher-value components.

Market Opportunities

Liquid-Cooled AI Infrastructure

  • Server OEMs can attach liquid-cooling manifolds, cold plates, rack integration and thermal management services to premium AI systems, increasing revenue per deployment while AI servers account for a rising proportion of hardware value. AI-server revenue grew 83.4% in 2025.
  • Data-center operators benefit from higher compute density and improved energy efficiency, particularly where existing facilities must satisfy national utilization requirements of at least 60% in 2025.
  • Successful monetization requires server, cooling and facility engineering to converge around standardized high-density rack designs as China's computing-center installed base surpassed 10.85 million standard racks in 2025.

Domestic Processor and Secure Infrastructure Stacks

  • Domestic processor, firmware and operating-system ecosystems can capture government, telecom and regulated-enterprise demand as critical-infrastructure rules require security controls and national-security review for qualifying purchases. The framework has applied since 2022.
  • OEMs that certify domestic platforms against the mandatory GB 43630-2023 standard effective in 2025 can combine localization with energy-efficiency compliance, strengthening tender competitiveness.
  • Opportunity realization depends on software-porting and ecosystem maturity because customers require operational continuity across x86, ARM and indigenous architectures while AI-server demand expands rapidly. AI-server units rose 69.1% in 2025.

National Computing Hub Expansion

  • OEMs and integrators can establish regional staging, maintenance and liquid-cooling service capabilities around national clusters, monetizing repeated server refresh and capacity additions across standardized campuses. Eight national hubs are designated.
  • Western regions benefit from the migration of latency-tolerant workloads, allowing investors to align lower-cost energy resources with AI training, rendering, analytics and backup use cases. Ten national clusters form the core layout.
  • New large-scale capacity increasingly needs to align with national-hub planning because policy directs large and hyperscale projects toward designated computing nodes, making cluster access strategically important for vendors. National hub concentration policy was reinforced in 2023.

CHAPTER 9 - Competitive Landscape

Competitive Landscape Overview

Competition is concentrated among domestic server OEMs, with the six leading disclosed x86 vendors representing approximately 81% of 2024 revenue, while AI systems intensify competition around accelerators, cooling and customization.

Market Share Distribution

IEIT Systems Co., Ltd.
New H3C Technologies Co., Ltd.
Huawei Technologies Co., Ltd.
xFusion Digital Technologies

Top 5 Players

1
IEIT Systems Co., Ltd.
!$*
2
New H3C Technologies Co., Ltd.
^&
3
Huawei Technologies Co., Ltd.
#@
4
xFusion Digital Technologies
$
5
Lenovo Group Limited
&@$
Combined Share$%

Market Dynamics

Local Players70%
Regional/Int'l30%

8 new entrants in the past 5 years, indicating strong market attractiveness and growth potential.

Company Profiles (Top 10 Players)
Company Name
Market Share
Headquarters
Founding Year
Core Market Focus
IEIT Systems Co., Ltd.
30.8% (2024 x86)Beijing, China-AI servers, rack servers, HPC and intelligent computing
New H3C Technologies Co., Ltd.
12.6% (2024 x86)Hangzhou / Beijing, China2003Enterprise servers, cloud infrastructure and AI computing
Huawei Technologies Co., Ltd.
-Shenzhen, China1987Kunpeng and Ascend-based computing infrastructure
xFusion Digital Technologies
13.3% (2024 x86)Singapore-Enterprise, telecom and intelligent-computing servers
Lenovo Group Limited
9.8% (2024 x86)Beijing, China / Morrisville, USA1984ThinkSystem, Neptune cooling and AI infrastructure
Nettrix Information Industry Co., Ltd.
8.3% (2024 x86)Beijing, China-Customized rack, AI, multi-node and edge servers
ZTE Corporation
6.5% (2024 x86)Shenzhen, China1985Telecom cloud, general computing and AI servers
Dawning Information Industry Co., Ltd. (Sugon)
-Beijing, China-HPC, scientific computing and data-center servers
Dell Technologies
-Round Rock, USA1984PowerEdge enterprise and accelerator servers
Hewlett Packard Enterprise
-Spring, USA2015ProLiant, HPC and enterprise AI infrastructure

Cross Comparison Parameters

The report provides detailed cross-comparison of key players across 10 performance parameters to identify competitive strengths and weaknesses.

Analysis Covered

Market Share Analysis:

Benchmarks vendor position across domestic server procurement and deployments

Cross Comparison Matrix:

Compares operating scale, AI exposure, growth and profitability metrics

SWOT Analysis:

Assesses technology strengths, supply risks and customer concentration exposure

Pricing Strategy Analysis:

Reviews configuration premiums, customization economics and enterprise discount structures

Company Profiles:

Evaluates portfolios, architecture strategy, customer focus and competitive positioning

CHAPTER 10 - REPORT TOC

Table of Contents

82Pages
34Chapters
10Companies Profiled
7Segmentation Types
Phase 1

Market Assessment Phase

11

Supply-side and competitive intelligence covering market sizing, segmentation, competitive dynamics, regulatory landscape, and future forecasts.

Phase 2

Go-To-Market Strategy Phase

15 chapters

Entry strategy evaluation, execution roadmap, partner recommendations, and profitability outlook.

Phase 3

Survey Phase

8 chapters

Demand-side primary research conducted through structured interviews and online surveys with end users across priority metros and Tier 2/3 cities to capture consumption behavior, unmet needs, and purchase drivers.

Complete Report Coverage

201+ detailed sections covering every aspect of the market

143

Assessment Sections

58

Strategy Sections

CHAPTER 11 - Our Approach

Research Methodology

Desk Research

  • Server shipment and revenue tracking
  • AI infrastructure procurement trend analysis
  • Data center capacity policy review
  • OEM product architecture benchmarking

Primary Research

  • Server product directors and architects
  • Data center procurement executives interviewed
  • Cloud infrastructure managers and CTOs
  • Systems integrators and channel heads

Validation and Triangulation

  • 320 respondents across value chain
  • Shipment revenue consistency checks performed
  • ASP and configuration benchmarks reconciled
  • Policy capacity trends independently validated

CHAPTER 12 - FAQ

FAQs

Still have questions?

Our research team is here to help you find the right solution

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CHAPTER 13 - Related Research

Explore Related Reports

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500+

Market Research Reports

50+

Countries Covered

15+

Industry Verticals

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;China Data Center Server Market Share, Companies & Trends Report 2026-2031