The global data center and AI infrastructure sector is undergoing a fundamental shift toward unprecedented capital-driven expansion, with particularly notable investments in data center construction, AI infrastructure, and power facilities. Some institutions estimate the total market size could reach $7 trillion. Chinese IDC companies' Q3 reports show cloud service providers maintaining steady capital expenditures on data centers, making wholesale IDC services and cloud computing the primary revenue streams for major players – trends that continue strengthening under this investment narrative.
Several critical developments are transforming China's IDC sector:
1. Drastically Shortened Delivery Cycles (6-9 Months) The priority for intelligent computing centers has shifted decisively from reliability to delivery speed, which now ranks as the top consideration for IDC clients. With GPUs accounting for 60-70% of total cost of ownership (TCO), China's intelligent computing projects now demand delivery within 6-9 months. This has driven widespread adoption of prefabricated standardized modules, accelerating average delivery times from 12-14 months to current benchmarks. North American clients reportedly prioritize intelligent computing center features as follows: delivery speed, computing performance, operational efficiency, cost-effectiveness, flexibility, and reliability. For instance, DayOne recently delivered a 100MW overseas project in just 8.5 months.
2. Larger-Scale Deployments and Design Innovations Hyperscale cloud providers are accelerating data center construction globally, pursuing record capacity expansions with computing clusters targeting 100,000 GPUs. The industry now sees gigawatt-scale orders emerging. To meet AI demands, facility upgrades focus on power density, cooling systems, and networking, often requiring structural modifications to load-bearing capacity and floor height. Technological breakthroughs in cooling systems, deployment methods, and data center architecture are critical to support these expansions. The market increasingly emphasizes integrated solutions combining power supply, computing resources, networking, and data center operations for optimal cluster performance.
3. Heterogeneous Architectures and Domestic Chip Compatibility Many IDC providers have actively expanded infrastructure compatibility over the past two years, transitioning from NVIDIA-based systems to support domestic computing platforms like Alibaba's T-Head. GDS reports a shift from conventional domestic CPUs (2/4/6/8/16 CPUs per rack, 5-10kW IT power capacity, air/liquid cooled) to supernodes supporting 64/384 GPUs with 54-350kW IT power capacity and liquid cooling ratios reaching 70-80%.
4. Expanded Financing Channels In September 2025, China's NDRC streamlined infrastructure REIT issuance procedures, allowing listed REITs to acquire similar projects six months after initial listing. Following the June 2025 approvals for Southern R&F Data Center REIT and Southern Global Data Center REIT, 21Vianet announced an RMB 860 million private REIT listing on Shanghai Stock Exchange on November 5. These developments significantly broaden financing options for Chinese IDC companies.
Sustainability and ESG considerations are driving innovative development models and data center solutions, with liquid cooling and renewable energy emerging as key focus areas. Industry consolidation is accelerating as large platform-based operators secure more contracts and capital market support, further consolidating their market leadership positions.