China’s cloud infrastructure spending to continue to grow in 2021


A new report from Canalys revealed that cloud infrastructure services spending in China increased by 62% in the fourth quarter of 2020 up to $5.8bn, which is the highest growth ever recorded.

This growth was driven by digital transformation efforts due to the pandemic, as well as China’s rapid economic recovery. Hence, it was noted that cloud infrastructure services are still a key driver in China, especially as the government made it one of its top strategic priorities.

The shift to remote working and the rise in gaming, streaming, and other online services drove cloud infrastructure services spending in China in 2020. Moreover, cloud service providers helped developed digital services in order to support businesses during these challenging times, leading to more transformation projects in the future.

In 2019, China was the second-largest market after the US, with its top four cloud service providers being Alibaba Cloud, Huawei Cloud, Tencent Cloud, and Baidu Cloud, which all accounted for over 80% of total spending. In 2020, China’s total cloud infrastructure services spending rose to $19bn.

It is expected that the consumption of cloud services will only grow stronger in the coming year.