Strong demand for data center and concentrated market

This year, major Internet companies such as Tencent and Alibaba have greatly increased their demand for servers. At the same time, the market demand of small and medium-sized customers may shrink due to the impact of large-scale enterprises on the cloud. With the popularity of public cloud and the trend of enterprise information system on the cloud, the number of customers who originally rented single cabinets and small-scale servers has decreased, and the demand for data centers led by public cloud IAAs service providers has become stronger and stronger, with greater market concentration.

According to the survey, the number of global super large-scale data centers in 2017 was 386, accounting for about 32% of the total number of servers in the global data center in terms of the number of servers; By 2021, the number of global super large-scale data centers will reach 628, and the proportion of servers will increase to 53%.

In 2018, there were 430 super large-scale data centers, of which the United States accounted for about 40%, while China accounted for only about 8%. By the end of 2016, among the standard racks under construction in China, the number of standard racks of super large data center accounted for nearly 40%, which partly shows that super large data center is also the mainstream of data center construction in China in the future.

AI servers are developing rapidly

The AI server market has been formed, and there are many enterprises from upstream suppliers to downstream service providers.

The AI industry is growing rapidly, and there is significant room for AI server demand growth. In 2017, the scale of the global AI industry was 218 billion yuan, an increase of 15% year-on-year, and is expected to reach 270 billion yuan in 2018. In terms of the domestic market, the scale of China's artificial intelligence market was 15.21 billion yuan in 2017. In 2018, China's artificial intelligence market is expected to exceed 20 billion yuan and achieve 57% rapid growth.

From 2015 to 2018, the scale of global and Chinese artificial intelligence market has shown an accelerated growth trend, which requires AI servers to provide huge computing power support, and AI server business has broad growth space. From 2017 to 2021, the CAGR of generalized AI servers in China was 24.9%, which is expected to reach US $25.1 billion by 2021.