China IaaS Market Size and Forecast by Offering, Deployment Model, Organization Size, Subscription Model, and End User Industry: 2019-2033

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Industry Assessment Overview

Industry Findings: Performance in China is shaped by rapid expansion of compute-intensive AI workloads and strong national data-governance expectations (Sep-2023). Enterprises increasingly rely on providers that combine high-density compute with regulatory alignment. A key example is the acceleration of datacenter construction in Beijing, Hebei, and the Yangtze River Delta, driven by national AI initiatives and the “Eastern Data, Western Computing” program, which redistributes computing loads across provinces.

Industry Progression: Industry progression accelerated as Tencent Cloud announced new AI-driven infrastructure upgrades across its Chinese regions in Mar-2024, boosting GPU capacity and increasing throughput for enterprise adoption. These enhancements widen domestic access to AI-grade compute and intensify competition among Alibaba Cloud, Huawei Cloud, and regional state-backed data-center operators.

Industry Player Insights: In China, the competitive footprint is influenced by Alibaba Cloud, Huawei Cloud, Tencent Cloud, and China Telecom. China Telecom’s Nov-2023 DC expansions in Inner Mongolia increased available compute and improved interprovincial redundancy, strengthening the country’s distributed-compute posture.