Companies worldwide strive to meet the escalating demands of a digitally driven era. This dynamic is particularly prominent in China, where technological advancements and innovation are at the forefront. Premium, high-density data center solutions have become imperative for propelling the country further into a digitally advanced landscape. These robust infrastructure solutions cater to the increasing requirements for storage, processing, and computational power enabling the smooth integration of cutting-edge technologies that take businesses to the next level.

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Leading data center providers EdgeConneX and Chayora unveiled a strategic partnership in December 2021 to expand their solutions throughout mainland China, including Beijing and Shanghai.  EdgeConneX has carved its niche as a global leader in hyperscale data center deployments, recognized for its extensive experience and proficiency in delivering top-tier solutions across diverse markets worldwide. Chayora is a trailblazer in data center innovation in China, renowned for its proven high-density, High-Performance Computing (HPC)-ready designs. The company excels in delivering efficient, customized data center solutions, allowing unparalleled speed to market. The collaboration between EdgeConneX and Chayora provides state-of-the-art infrastructure solutions in China that cater to the burgeoning demands of an increasingly digitalized ecosystem.

TechHQ spoke with Kelvin Fong, the Managing Director of EdgeConneX Asia Pacific, and James Wei, the CEO of Chayora, to uncover their insights on how China can sustain a thriving data center landscape in 2024.

THQ: What is driving the growth of the data center industry in China?

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JW: “The country’s desire to develop and advance capability in key technologies such as cloud, AI, and quantum computing is creating the right conditions for tech innovations to bloom and flourish in China.

“There is growing demand for digital infrastructure to power new business applications and online services for users, especially as internet penetration continues to grow at a healthy rate. At the start of 2023, internet penetration was about 73.7 percent. By June, it had increased to about 76.4 percent.

“In addition, the explosion of AI-powered services and capabilities requires more high-density data centers than before to support. The continued integration of AI technologies into everyday applications will culminate in greater power demand for AI training and inferencing. Powerful hyper-converged infrastructure (HCI) systems deliver more powerful on-premises and computing capabilities.

“Power demands at the rack level are expected to increase rapidly due to these new high-density systems. This drives newer solution designs and features to provide enough power along with adequate cooling.”

KF: “China has been investing heavily in AI research and development. The implementation of AI technologies, such as machine learning and deep learning, requires significant computational power, driving the need for advanced data centers.

“Furthermore, the Chinese government has been promoting the development of government cloud services. Chinese telecommunications companies play a crucial role in building and maintaining these government cloud infrastructures, contributing to the demand for robust data centers.

“The booming e-commerce industry in China also generates massive amounts of data related to online transactions, user behavior, and logistics. The growth of fintech services in China, such as digital payments and financial analytics, contributes to the increasing demand for data storage and processing capabilities.

“Finally, the development and testing of autonomous vehicles rely heavily on data processing and storage. China has been making strides in autonomous vehicle technology. Further, collecting and analyzing vast amounts of data from sensors and cameras in real-time require robust data center infrastructure.”

THQ: How can businesses utilize data centers for growth opportunities while effectively managing computing power demands and challenges?

KF: “Chinese businesses can harness the power of data centers to accommodate next-generation technologies, particularly AI. Data centers provide the computational resources needed for AI algorithms, machine learning, and data processing, enabling companies to extract valuable insights and improve decision-making processes.

JW: “They must also stay abreast of technological developments and adopt relevant cutting-edge systems to enhance data center capabilities and performance.”

KF: “Chinese businesses can foster collaboration, creativity, and innovation by leveraging data centers as innovation hubs. By creating an environment that encourages experimentation and the development of cutting-edge solutions, they can stay ahead in the rapidly advancing tech landscape.”

JW: “Businesses can partner with leading data center operators with the technical capabilities to deliver efficient design with market-leading power usage effectiveness (PUE). In doing so, they can adopt customized data center deployments tailored to exact requirements to minimize inefficiencies.”

THQ: To your knowledge, are customers actively pursuing energy-efficient solutions, particularly those aimed at achieving a low PUE?

KF: “The importance of low PUE varies depending on the specific technology involved. For instance, in applications that involve AI training, where latency is not a critical factor, the focus tends to shift towards optimizing computer power rather than minimizing latency. In these cases, managing PUE becomes crucial, and many customers explore strategies such as incorporating renewable energy sources to enhance sustainability.

“Furthermore, investing in renewable energy, such as solar or wind power, can lead to long-term cost savings. By adopting renewable energy sources, Chinese businesses can contribute to a more stable and sustainable business model.”

THQ: How do you see the partnership between Chayora and EdgeConneX supporting China’s rising demand for digital infrastructure?

JW: “[By] leveraging the best-of-the-breed data center know-how and capabilities from each other. EdgeConneX has extensive experience in global hyper-scale deployments, while Chayora is the China [native] platform and market expert with deep local relationships. We can execute quickly through Chayora’s familiarity with the Chinese data center ecosystem.

“Together, we provide a complete global hyperscale data center platform spanning over 50 of the hottest markets, spring-boarding businesses’ expansion where and when they need it.”

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KF: “As Chinese enterprises embark on their global expansion journey, collaborating with a robust partner becomes pivotal in streamlining this process. This strategic alliance has the potential to provide invaluable expertise, essential resources, and specialized services, thereby bolstering the internationalization endeavors of Chinese companies operating in the digital sector.

“Pooling our strengths, we can harness the unparalleled knowledge and capabilities of top-tier data centers from both sides. Leveraging Chayora’s familiarity with the intricacies of the China data center ecosystem will enable us to execute swiftly. Our partnership is poised to accelerate our collective success.

“Moreover, both organizations are actively cultivating their proficiency in high-performance computing solutions. This convergence aligns with our shared objectives and establishes the ideal win-win scenario for ‘East Data and West Computing’.”

For more information on the Beijing-Tianjin Data Center Campus, please visit here.

For more information on the Greater Shanghai Data Center, please visit here.