"NTT Communications recently announced that its Shanghai data center, located in the Pudong region, had gone live. It is the ICT solutions provider's third facility in the city, according to RTT News, and part of the growing number of international data center companies that are expanding their investment in the region.
The facility will offer around 28,000 square feet (2,600 square meters) of data center space, with 1,000 server racks, according to the source. Additionally, it is the first of the company's data centers in China to offer total-service design, construction and operation features for its customers. It will deliver 99.9999 percent power availability, as well as redundant power supply, communications and cooling systems. Its 10kVA/rack high-density power provisioning and efficient, sustainable design led its operators to predict that it will cost companies about 20 percent less than comparable data centers in the Shanghai area. It joins data centers owned and operated by companies like AT&T, Equinix and Telehouse in the rapidly growing Chinese market, as well as contributes to NTT Communications' expanding cloud, colocation and other next-gen data center services.
Cloud, IT Outsourcing Growth Continue in China
The expansion of NTT Communications and other companies in China is in response to continuously heightening demand for cloud and outsourced IT services in the region. CenturyLink brought its managed hosting solutions to China in September, while CloudFlare recently announced an ambitious plan to open 12 data center facilities in China during the first six months of 2015, TechCrunch reported.
A recent report by TechNavio projected that the IT outsourcing market in China will rise at a compound annual growth rate of 25 percent between 2013 and 2018, as more companies seek application outsourcing and infrastructure outsourcing solutions. The expansion of high-speed Internet, as well as investments in social media, mobility and analytics have rapidly expanded business portfolios, strained networks and required more infrastructure investment, driving organizations to look outside the company for strong, reliable hardware and network supporting. Moreover, as companies such as CloudFlare have attested, the market for robust cybersecurity is on the rise in the area, spurring an immediate need for cyber protection and data security strategies that are not offered in abundance within the region.
As investment by data center companies in Shanghai and Beijing data centers continues, it is likely that more international providers will seek a stronger on-the-ground presence, working with local policymakers and existing IT companies to develop solutions that cater to the unique needs of Chinese enterprises and providing fluid, streamlined to service with those looking to broaden their international portfolios."