★2024 China IDC Major Events Selection★

01 SASAC: Accelerate the Construction of a Number of Intelligent Computing Centers

On February 19, the State-owned Assets Supervision and Administration Commission of the State Council convened a special symposium on artificial intelligence for central enterprises titled “AI Empowers Industrial Transformation.” The meeting emphasized that central enterprises must integrate AI development into their overall strategic planning, vigorously advance industrial transformation, and accelerate the deployment and growth of intelligent industries. To lay a solid foundation for such development, they should concentrate key resources on the areas where they are most needed and where they have the greatest competitive advantages, expedite the construction of a number of intelligent computing centers, further deepen open cooperation, and better leverage the role of inter-enterprise collaborative innovation platforms. As of the end of June, the scale of intelligent computing power among central enterprises had doubled year on year. Looking ahead, central enterprises will step up their efforts to become providers of intelligent computing resources, facilitators of application scenario implementation, and nurturers of the broader industrial ecosystem.

02 Several Provincial Data Bureaus Officially Established

Since the beginning of 2024, provincial-level “Data Bureaus” have been established one after another. On January 5, Jiangsu Province’s Data Bureau—the nation’s first at the provincial level—was officially inaugurated. Subsequently, Data Bureaus were set up in Sichuan, Shanghai, Yunnan, Qinghai, and other provinces, with the heads of these bureaus also being publicly announced. Regionally, provincial-level Data Bureaus now span both eastern and western China; however, their names, hierarchical status, and specific responsibilities vary. The establishment of multiple provincial Data Bureaus serves, on the one hand, to provide unified coordination and standardization for advancing the development of a foundational data governance system, and, on the other hand, to guide the exploration and utilization of data as well as the growth of the digital economy.

03 Pilot Program for Expanding Foreign Access to Value-Added Telecommunications Services Officially Launched

On April 10, the Ministry of Industry and Information Technology issued the “Notice on Launching a Pilot Program to Expand Foreign Access to Value-Added Telecommunications Services,” stipulating that foreign investment in pilot sectors within designated pilot zones in Beijing, Shanghai, Hainan, and Shenzhen may exceed the 50% cap and reach up to 100%. On October 23, the pilot program was officially launched in these four regions. Following the implementation of the pilot, foreign-invested enterprises will be permitted to operate Internet services on a wholly foreign-owned basis in the pilot areas. Data center IDC, online data processing, and transaction processing—among other telecommunications services—have deeply engaged in China’s computing power and cloud services markets, jointly driving the development of the country’s digital industry.

04 Singapore Data Center Fire Lasts Over 50 Hours

In September, a fire broke out at a data center on Lorong 10 in Singapore and remained unextinguished for more than 50 hours. According to disclosed updates on the incident, the blaze was caused by a lithium-battery explosion. Analysts note that while the inherent safety of lithium batteries has been validated in many respects, this particular incident may have been influenced by external factors and other contributing conditions. There is currently some debate over the firefighting measures employed. In terms of lithium-battery deployment, data centers must adhere to relevant standards and regulations to mitigate the risk of such incidents.

05 Public Consultation on the Mandatory National Code for Engineering Construction: “Code for Data Center Projects (Draft for Comments)”

On April 25, the Ministry of Housing and Urban–Rural Development released the draft National Mandatory Code for Engineering Construction, “Data Center Project Code (Draft for Comments),” for public consultation. This draft represents an updated version of the document issued on June 4, 2021. Compared with the earlier version, the main revisions pertain to the criteria for classifying data center tiers, energy-efficiency requirements, mechanical and electrical system specifications, and seismic design, with stricter and more detailed provisions. For instance, newly built or retrofitted large and ultra-large data centers are required to achieve an annual average power usage effectiveness (PUE) of less than 1.3 and an annual average water usage effectiveness (WUE) of less than 1.6.

06 Microsoft Data Center Incident Causes Global Outage

On July 19, local time, several applications and services under U.S. tech giant Microsoft became inaccessible, experiencing access delays, functional disruptions, or complete outages. A large number of user computers displayed blue screens, leading to flight cancellations and the near-total shutdown of industries such as healthcare, banking, and hospitality. The incident affected more than 20 countries; according to Microsoft’s estimates, nearly 8.5 million user devices worldwide were impacted. The industry has described this outage as “the largest IT blackout in history.” Microsoft officially confirmed that the root cause was a data center in its Azure cloud service region in the U.S. Midwest, where a critical error occurred during an update to the cybersecurity vendor’s software. This error resulted in incompatibility with Microsoft’s operating system, triggering Windows’ built-in self-protection mechanisms.

07 Data Center Activates U.S. Nuclear Power

Artificial intelligence relies on massive computational power, resulting in enormous energy demands. To address the electricity needs of data centers, tech giants such as Google, Microsoft, Oracle, Amazon Web Services, and OpenAI have turned their attention to nuclear energy, taking steps in 2024 that range from feasibility assessments and power procurement to acquisitions and even the construction of new nuclear power plants. According to media reports in July 2024, roughly one-third of U.S. nuclear power plant owners are currently in negotiations with technology companies over power supply for newly built data centers. The growing electricity shortage in the data center sector is accelerating the development of nuclear energy; however, the social and political challenges it faces, along with its lengthy construction timelines, still require further resolution.

08 Two Major Policies on Equipment Upgrades in the Industrial Sector Released

In April, the “Implementation Plan for Promoting Equipment Upgrades in the Industrial Sector” was issued. Centered on advancing new industrialization and taking large-scale equipment upgrades as the key leverage, the plan calls for implementing a technological transformation and upgrading project for the manufacturing sector, adhering to market-oriented promotion, standardization-led guidance, and integrated hardware–software upgrades, and carrying out advanced equipment upgrades, Digital Transformation Four major initiatives—promoting green equipment and enhancing intrinsic safety—are being advanced to drive the high-end, intelligent, and green development of the manufacturing sector. In September, building on the “Implementation Plan for Promoting Equipment Upgrades in the Industrial Sector,” the “Guidance on Equipment Upgrades and Technological Renovation in Key Industrial Sectors” was released, outlining target tasks, standard references, and priority areas for 27 key industries as well as four emerging fields—software, networking, green technologies, and cybersecurity—to serve as a reference for local governments, enterprises, and financial institutions in carrying out equipment upgrade projects. This initiative will facilitate the renewal of data center equipment, enhance computing power supply, and exert a significant impact on the overall development of the industry.

09 China’s Computing Power Structure and Computing Power Network Continue to Optimize

In 2024, China’s computing power industry achieved remarkable progress, with continuous optimization of its computing power structure. As of June, the country operated more than 8.3 million standard server racks, with a total computing power capacity of 246 EFLOPS. The share of intelligent computing has been steadily increasing, reaching over 76 EFLOPS by the end of June 2024—up 65% from the end of June 2023. According to data from Kechi Consulting, as of November, the total number of operational and under-construction intelligent computing centers in China had exceeded 500. Meanwhile, the interconnectivity among national computing power hub nodes has continued to improve: according to the Q1 2024 Report on Computing Power Network Quality Monitoring released by the China Academy of Information and Communications Technology, the 20-millisecond latency zone covering the eight major national computing power hubs now encompasses China’s major cities, while the 5-millisecond latency zone has extended to cover the provinces and municipalities surrounding these hubs.

More than 10 computing power leasing orders have been terminated.

Since the surge of large AI models, computing power has rapidly expanded beyond its traditional boundaries. The concept of “shoveling” computing power to support these models—i.e., offering computing-power leasing services—has attracted significant attention from well-capitalized firms. In addition to traditional IDC and cloud service providers, a wave of cross-industry players has entered the market. However, as challenges have emerged in the procurement and delivery of GPU cards, computing-power leasing prices have become volatile, putting the industry through a major reshuffling. As of early November, several large leasing deals worth over 100 million yuan—and even exceeding 1 billion yuan—have been canceled. This underscores the need for the computing-power-leasing sector to undergo a transformation, with new developments required in areas such as market perception and business models.

11. Determined by the Fifth Division of the National Data Administration

In February, according to the official website of the State Civil Service Administration, the five divisions and bureaus under the National Data Administration were officially named as follows: the General Division, the Policy Planning Division, the Data Resources Division, the Digital Economy Division, and the Digital Technology and Infrastructure Construction Division. According to the “Reform Plan for Party and State Institutions” issued by the CPC Central Committee and the State Council (hereinafter referred to as the “Plan”), the National Data Administration is responsible for coordinating and advancing the establishment of a foundational data system, overall planning for the integration, sharing, and development and utilization of data resources, and the coordinated promotion of the planning and construction of Digital China, the digital economy, and the digital society; it is administered by the National Development and Reform Commission.

12. The National Data Administration Publicly Seeks Comments on the “Guidelines for the Construction of National Data Infrastructure (Draft for Comments)”

On November 22, the National Data Administration, in collaboration with the National Development and Reform Commission and the Ministry of Industry and Information Technology, drew on current development realities to draft the “Guidelines for National Data Infrastructure Construction (Draft for Comments).” The draft proposes that, over the period from 2024 to 2026—approximately two to three years—pilot trials of data infrastructure technology roadmaps will be conducted across key industry sectors and typical application scenarios, with support provided to select localities, industries, and fields to take the lead in piloting and testing, thereby enriching the supply of solution offerings. It also calls for the formulation of unified standards and specifications covering catalog identification, identity registration, and interface requirements, so as to solidify the technical foundation for interoperability among data infrastructures. Finally, the draft aims to complete the top-level design for national data infrastructure construction, clearly defining both the technological roadmap and the practical implementation pathways for such construction.

13 Beijing to Impose Differential Electricity Tariffs on Existing Data Centers with PUE > 1.35

On November 14, the Beijing Municipal Bureau of Economy and Information Technology, the Beijing Municipal Development and Reform Commission, and the Beijing Communications Administration jointly released the “Work Plan for Optimizing Existing Data Centers in Beijing (2024–2027).” The plan aims to guide existing data centers in undertaking green and low-carbon upgrades, transforming them into intelligent computing power hubs and boosting the consumption of green electricity. According to the plan, “existing data centers” primarily refer to data centers operating in Beijing that consume 5 million kilowatt-hours or more of electricity annually, with those whose PUE exceeds 1.35 identified as the main targets for optimization. Starting in 2026, a differentiated electricity tariff will be imposed on data centers with a PUE above 1.35, while data centers with a PUE of 1.35 or lower will be publicly listed.

14 NVIDIA Unveils Blackwell

In March, NVIDIA unveiled its next-generation high-performance GPU—the Blackwell. Subsequently, in August, the company announced that Blackwell had successfully completed sampling and was moving into mass production. However, reports indicate that challenges such as overheating in supporting servers led to design changes and delays, which in turn affected the final version of Blackwell’s mass-production rollout. In response, at the end of November, NVIDIA assured investors that Blackwell chips have now entered full-scale production and that it will deliver increasing volumes each quarter going forward.

15. CSRC Issues Document Encouraging the Issuance of REITs by Data Centers and Other Entities

On April 19, the China Securities Regulatory Commission (CSRC) issued the “Sixteen Measures for Leveraging the Capital Market to Support the High-Quality Development of Technology Enterprises.” The CSRC stated that these measures are designed to further enhance the functions of the capital market, optimize resource allocation, and provide stronger support for the high-quality development of technology enterprises. Among other provisions, the measures mention: supporting eligible New Infrastructure Issue REITs in the science and technology innovation sector for new infrastructure such as data centers and science and technology innovation industrial parks, thereby broadening sources of incremental capital.

16 The First Legislation on Computing Power Is Introduced

In February, the “Measures for Promoting Wuhu City’s Development as a Computing Power Hub” were promulgated in the form of a government decree and came into effect on April 1, 2024. This marks the first time in China that the development of a computing power hub has been elevated to the legislative level, providing statutory safeguards for data center construction. The Measures consist of seven chapters and 34 articles, with a focus on standardizing the development of computing infrastructure, the application of computing power, the cultivation of the computing power industry, and the security and service support for computing power. They also center on building Wuhu into a computing power hub, a demonstration zone for innovation in data elements, and a public computing power service platform, while implementing a series of innovative measures. The Measures provide clear answers to key challenges and bottlenecks, such as the guiding principles for developing a computing power hub, the entities responsible for its construction, the specific components to be built, and the mechanisms for ensuring security.

17. The National Development and Reform Commission and three other departments plan to establish a unified tiered electricity pricing policy for key industrial sectors.

In July, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the National Energy Administration, and the National Data Administration jointly issued the Special Action Plan for the Green and Low-Carbon Development of Data Centers. The plan calls for a comprehensive review and elimination of regionally imposed preferential electricity pricing policies for high-energy-consuming industries, and for the establishment of a unified tiered electricity pricing policy targeting key industrial sectors. It also proposes that existing data centers with energy efficiency below the energy-saving benchmark, as well as under-construction or planned data centers whose energy efficiency fails to meet advanced standards, be subject to tiered pricing based on the extent of their energy-efficiency gap. This policy is designed to leverage price mechanisms to encourage high-energy-consuming industries to improve energy efficiency and promote green, low-carbon development.

18 Beijing Promotes Five Computing Power Projects to Private Capital

In June, the Beijing Municipal Development and Reform Commission, in collaboration with various districts and departments, identified and screened projects that align with the capital’s functional positioning, feature well-defined investment-return mechanisms, and demonstrate solid investment demand, thereby launching the first round of public project推介this year aimed at private investment. Among these projects are five computing-power–related initiatives. The modalities for attracting private capital include equity investment, joint operation, participation in construction, and debt financing.

19 Computing Power Accelerates Global Expansion

Since 2024, the overseas expansion of computing power has garnered significant attention. Driven by the rapid development of artificial intelligence, global demand for computing power has surged. According to KPMG Consulting, the global data center market is projected to achieve a compound annual growth rate of approximately 11.5% by 2032. Among these, Southeast Asia and the Middle East have emerged as particularly attractive regions, thanks to more favorable policy environments and robust demand. From 2023 to 2028, the Southeast Asian data center market is expected to maintain a high growth rate of 17.1%; meanwhile, from 2024 to 2029, IT load capacity in Middle Eastern data centers is forecast to grow at a compound annual rate of 14.8%, reaching 2,060 MW. In response, Chinese enterprises are accelerating their international expansion, further scaling up the industry.

20 Liquid Cooling Accelerates Adoption

With the rapid growth in demand for intelligent computing and the increasing deployment of GPU chips, data centers are facing ever-higher cooling requirements, driving widespread adoption of liquid cooling. In fact, newly built data centers this year are showing a rapid expansion in their use of liquid-cooling solutions. At the same time, efforts to develop liquid-cooling standards and to promote the global expansion of liquid-cooling technologies are also accelerating, indicating strong momentum across both the industry and the technology front.