ByteDance Dominates China's Data Center Market with Significant Capacity

A recent survey by the semiconductor research organization SemiAnalysis reveals that ByteDance, the parent company of TikTok, is the largest data center tenant in China, accounting for nearly 20% of the country's total data center capacity. The report indicates that by the end of 2026, China's data center capacity is projected to exceed 24 gigawatts (GW), ranking second globally after the United States, which is expected to reach 56 GW.

ByteDance has leased over 4 GW of data center capacity from various suppliers, including Qinhuai Data, China United Network Communications, and Century Internet. Notably, ByteDance is expected to contribute approximately 90% of Qinhuai Data's revenue by early 2026. In addition to leasing, ByteDance is also investing in its own data center infrastructure, with large facilities under construction in provinces such as Shanxi, Anhui, and Inner Mongolia, aimed at reducing dependence on external suppliers.

The report highlights a paradox in the Chinese data center market: while many facilities have been criticized for high vacancy rates, there is a significant shortage of AI server rooms. Older server rooms often lack the necessary power supply and cooling capabilities for high-performance AI servers, leading to rapid leasing of newly constructed AI data centers. The construction cost for a 100 MW data center in China is approximately $300 million, significantly lower than the $1.5 billion cost in the United States, with Chinese facilities typically completed within a year. However, the expansion of AI data centers in China faces challenges primarily related to the supply of advanced chips.

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Source: KLEA News