China's Data Industry Sees 117% Growth in Market Size Between 2021 and 2025

China's data industry has seen significant growth during the 14th Five-Year Plan period (2021-2025), with a market size of 5.86 trillion yuan (821.45 billion USD) by the end of 2024, up 117% from 2020. The number of data-related enterprises exceeded 400,000, and digital infrastructure has made notable strides, with 4.55 million 5G base stations and 226 million gigabit broadband users. China's computational power ranks second globally.

China's data industry has experienced significant growth during the 14th Five-Year Plan period (2021-2025), with a market size of 5.86 trillion yuan (821.45 billion USD) by the end of 2024, up 117% from 2020. This expansion is reflected in the increasing number of data-related enterprises, which exceeded 400,000, and the rapid advancement of digital infrastructure. By the end of 2024, China boasted 4.55 million 5G base stations and 226 million gigabit broadband users, positioning the country as a global leader in computational power [1].

The momentum in China's data sector is also evident in the growing demand for data centers. According to Moody's Ratings, power demand for data centers in the Asia-Pacific (APAC) region is projected to grow at a rate of 15% to 20% annually through 2030, with China contributing approximately 75% of the growth. This growth is primarily driven by the rapid development of artificial intelligence (AI) and the increasing need for computational power in data centers. By 2030, the region's total installed data center capacity is expected to more than double to 92 gigawatts (GW), with China alone accounting for about 67 GW [2].

The Chinese government has been proactive in attracting foreign investment to support this growth. During the third China International Supply Chain Expo (CISCE) in 2025, overseas exhibitors made up 35% of participants, up from 32% in 2024 and 26% in 2023. Industry giants like Honeywell, GE Healthcare, and Siemens have already secured their spots for next year, underscoring the growing commitment of foreign firms to China. This trend is supported by the country's deliberate policy push to keep foreign investment steady, including opening more fields to foreign firms and creating a more welcoming environment [1].

The data industry's success is also reflected in the increasing R&D investment by multinational corporations. For example, Mercedes-Benz China has poured over 10.5 billion yuan into Chinese R&D over the past five years, with its Shanghai R&D center leading global development. Similarly, US materials science giant Corning plans to localize the production of high-end optical fibers in Shanghai to meet the growing demand for denser, faster data transmission in AI data centers [1].

Despite the challenges posed by global economic conditions, China's ability to maintain steady foreign capital inflows stands out. By June 2025, China's actual utilized foreign direct investment (FDI) reached $708.73 billion since 2021, hitting the 14th Five-Year Plan target of $700 billion six months ahead of schedule. This resilience is evident in the continued growth of high-tech industries and service sectors, which attracted 34.6% of foreign investment in 2024, up from 28% in 2020 [1].

In conclusion, China's data industry has seen remarkable growth during the 14th Five-Year Plan period, driven by significant investments in digital infrastructure, foreign capital, and R&D. As the demand for data centers continues to grow, particularly in the APAC region, China's strategic position as a global leader in computational power is expected to strengthen.

References:
[1] https://www.chinadaily.com.cn/a/202508/13/WS689bfb73a310b236346f16eb.html
[2] https://www.caixinglobal.com/2025-08-13/asia-pacific-data-centers-are-going-to-need-a-lot-more-power-moodys-predicts-102351643.html