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Spending another 500 million new infrastructure, the battle for the data center behind Ali Jingxi



Under the wave of "new infrastructure", another wave of IDC (Internet Data Center, Internet Data Center) construction has emerged, and Internet giants such as Alibaba and Tencent have increased their investment in IDC.

Yibang Power learned that recently, Ali spent 500 million yuan to establish Alibaba Jingxi Information Technology Co., Ltd. The business scope includes: information technology development, technical services, technical consulting, technical exchanges, technology transfer, technology promotion, etc.

The registered address of the company is Zhangjiakou City, Hebei Province, the legal representative is Zhou Ming, and it is wholly owned by Alibaba (China) Co., Ltd.

There are indications that this company is another corporate entity for Alibaba to build data centers.

Previously, on July 22, Alibaba invested 800 million to establish Alibaba Jiangsu Information Technology Co., Ltd., with Zhou Ming as its legal representative. Zhou Ming is the vice president of Alibaba Group, responsible for infrastructure affairs. According to the data, there are currently 7 companies under Alibaba that Zhou Ming is the legal person of.

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It is understood that Alibaba has built five data centers in Zhangbei, Heyuan, Hangzhou, Nantong, and Ulanqab. Behind the frequent investment, why are data centers so popular?

The giants end up spending hundreds of billions of dollars in IDC

Since China joined the Internet for the first time in 1994, IDC (Internet Data Center) was born. In the past 20 years, behind the miracles created by China's Internet, the data center is inseparable.

What is an Internet data center?

Internet data centers, similar to computer hosts and memory cards, are responsible for all tasks related to "computing" and "storing" data. Therefore, such places were also called "computer rooms" in the past.

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With the rise of the Internet, coupled with the continuous emergence of new computing technologies, and the advent of cloud computing, the industry began to deploy data centers on a large scale.

However, in the past 10 years or so, the real big players in this field have been telecom operators whose main business is infrastructure construction and operation. Due to the needs of their own communication services, telecom operators have successively built a large number of data centers and become the most important players in this field.

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After more than 10 years of rapid development, China's data centers have not shown signs of fatigue. Instead, with the help of the new infrastructure policy in 2020, they have once again entered a wave of construction.

The difference is that this time, the Internet giant that develops cloud computing business has changed its role as a loyal "user" in the past, turned around and turned into a player in this field.

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On April 20, 2020, Alibaba Cloud took the lead in announcing that it will invest 200 billion yuan in the next three years for the research and development of major core technologies such as operating systems, servers, chips, and networks, as well as the construction of future-oriented data centers. On June 9, at the 2020 Alibaba Cloud Summit, Zhang Jianfeng, president of Alibaba Cloud Intelligence, said that Alibaba Cloud has more than 1 million servers, and this number is expected to reach 3 million in three years.

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With such a huge increase in the number of servers, how should Alibaba Cloud deploy and plan? The answer has been revealed: Alibaba Cloud's data centers in Zhangbei, Heyuan, Nantong, Hangzhou and Ulanqab have been officially completed and have become the largest data center cluster in the country.

Alibaba Cloud said that in the future, more than 10 super data centers will be established, applying the latest research results of Bodhidharma Academy and Pingtouge to complete a comprehensive upgrade in terms of scale, computing power, energy saving, and intelligence, and fully support the development of new infrastructure.

In addition to Ali, other Internet giants including Tencent are also increasing their investment in IDC.

On May 26, 2020, Tang Daosheng, President of Tencent Cloud and Smart Industry Business Group, announced that in the next 5 years, 500 billion yuan will be invested in the further layout of new infrastructure. Among them, in terms of data centers, Tencent will successively build more A large data center with a scale of millions of servers.

On June 19, 2020, Baidu also announced that it will continue to increase investment in new infrastructure fields such as artificial intelligence, chips, cloud computing, and data centers in the next 10 years. It is estimated that by 2030, the number of Baidu intelligent cloud servers will exceed 5 million;

More than that, Kuaishou has announced that it will invest tens of billions to build a data center in Ulanqab City, Inner Mongolia.

A data center battle is ready to go.

Why Zhangjiakou?

Among Alibaba's five data centers, Zhangbei Data Center is located in Zhangbei County, Zhangjiakou City, Hebei Province. It is currently the largest cloud data center that has been put into operation in China, with more than 300,000 servers in operation. It will be expanded to a scale of more than one million units.

Today, Zhangjiakou City has taken the construction of data centers as an important strategic direction.

Ju Jing, President of Chindata, once introduced that Zhangjiakou today is highly similar to the conditions of Northern Virginia in terms of various location advantages, and has the conditions to build a world-class data center ecosystem.

"Northern Virginia is adjacent to Washington DC and the Greater Bay Area of New York. It has a highly dense and complete network, sufficient clean energy, convenient transportation, rich talents, and a beautiful ecology. Currently, Northern Virginia has deployed a total of 10.5 million high-density servers, accounting for the entire North American 70% of the market. With a good industrial foundation, Internet giants such as Microsoft, Google, Apple, and Facebook have gathered.”

Zhangjiakou is adjacent to Beijing, where the largest number of information technology companies in the country are concentrated in Beijing. At the same time, the integrated development of the Beijing-Tianjin-Hebei region and the release of non-capital functions have also brought external support to Zhangjiakou.

On October 12, 2019, Zhangjiakou City released the "China Databa Zhangjiakou City Big Data Industry Development Plan (2019-2025)". The plan proposes to build Zhangjiakou into a world-class ultra-large-scale within 3 to 7 years The data center industrial cluster, the national green data center innovation demonstration area, the national core big data equipment manufacturing base, and the national big data innovative application pioneer area will be built into the "China Data Dam".

According to the plan, by 2021, the scale of Zhangjiakou's big data servers will exceed 1.5 million; by 2025, the scale of big data servers will reach 5 million, with a capacity of tens of millions of sets, and the scale of investment in big data and related industries will exceed 200 billion yuan. Big data has become an important support for improving government governance capabilities and an important driving force for economic and social development.

The competition of "burning money" will increase investment by 1.5 trillion yuan in 2022

Globally, hyperscale data centers have been growing at a historic rate over the past six years, with the number of hyperscale data centers tripling since 2013, led by Amazon, Apple, Google, Facebook And Microsoft led. At the end of the third quarter of 2019, 504 of these large data centers were in operation, with more than 150 new hyperscale centers under construction.

The data shows that in 2019, the number of super-large and large-scale data centers in my country accounted for 12.7% of the world. Compared with the United States, this data still has a large gap. The super-large data centers in the United States have accounted for 40% of the global total. There is still a large room for development of large-scale data centers, and the proportion will continue to increase.

In China, taking the "new infrastructure" as an opportunity to speed up the construction of data centers and enhance their competitiveness in the new situation is an important reason why giants spare no expense in building data centers.

The data center is a "money-burning" business, with large initial investment and long payback period. The construction of 10,000 cabinets requires about 2 billion construction investment in the early stage. Therefore, financial strength, energy consumption index acquisition, and key customer partnerships are key factors for data centers. Several keys to competition.

According to CCID’s analysis, domestic data traffic will increase by 32 times in the next 8 years, and considering that server performance will increase by 8 times every 4 to 5 years, the number of data center racks in the next 8 years will be the current 2 ~3 times. It is estimated that by 2022, the new investment will be 1.5 trillion yuan, driving related investment of 3.5 trillion yuan.

Reproduced from Yibang Power Network


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