The "East Data and West Calculation" project is an important starting point for promoting the high-quality development of the digital economy, and policy guidance supports it. For the first time, the 2022 government report singles out the digital economy and its development goals; In the 14th Five-Year Plan for the development of the digital economy, the State Council clearly stated that by 2025, the added value of the core industries of the digital economy will account for 10% of GDP. #东数西算 #
At present, the "east-west calculation" has risen to a national strategic position, comparable to national-level projects such as south-to-north water diversion, west-to-east power transmission, and west-to-east gas transmission. The mainland's deployment at the national level to promote the development of the digital economy and the implementation of the "East Data and West Calculation" project are expected to accelerate the comprehensive coordinated and rapid development of the industrial chain.
East Data West Data Center Construction Plan:
"East Data and West Computing" refers to the construction of a new computing power network system that integrates data centers, cloud computing, and big data, which guides the computing power demand in the east to the west in an orderly manner, optimizes the layout of data center construction, and promotes the coordinated linkage between the east and the west. #2月财经新势力 #
Data Center
From 2022, with the promotion and implementation of the "East Data and West Computing" policy, each computing power node and province (city) of the national plan will closely issue relevant local policies on data center construction, and formulate regional data center cabinet numbers, shelf rate, PUE index targets, etc. by 2025.
For example, by the end of 2022, 10 projects had been signed in the Wuhu Cluster Start-up Zone, with a cumulative investment of more than 220 billion yuan; 7 framework agreement projects have been signed, with a cumulative investment of 72.5 billion yuan; There are 11 projects under discussion, with a cumulative investment of 88.56 billion yuan. There are 14 new and continued data center projects with Linger data center cluster, with a total investment of 68.569 billion yuan.
Line check | Industry Research Database Data shows that the upstream of the data center industry chain is IT hardware and infrastructure. IT hardware: divided into computing equipment (IT) and communication equipment (CT), IT equipment is mainly servers, CT equipment includes switches, routers and other network equipment and optical modules, which constitute the basis of computing power and network transmission. Infrastructure: divided into power equipment, monitoring equipment, air conditioning equipment and generator sets, mainly for IT hardware to provide stable power supply and suitable temperature environment.
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Source: Xingxingcha
Among them, servers are the core hardware of the data center.
According to data from the China Electronics and Information Industry Development Research Institute, servers account for the main proportion of investment in China's data center hardware equipment, of which X86 servers are the mainstay, followed by data center storage equipment.
AI servers are the key hardware for the new generation of AI data centers.
According to IDC data, it is expected that the market size of artificial intelligence accelerated servers will reach 5.69 billion US dollars in 2021, a year-on-year increase of 61.6%, and by 2025, the Chinese intelligent acceleration server market will reach 10.86 billion US dollars, with a five-year compound growth rate of 25.3%, and in 2021 H1, China's accelerated server manufacturers Wave, Ningchang, and Huawei ranked among the top three in terms of market size, occupying 70% of China's market share.
According to the "2022-2023 Chinese Intelligent Computing Power Development Assessment Report", the global AI server market is expected to reach US$34.71 billion by 2026, with a five-year compound growth rate of 17.3%.
cloud computing
Cloud computing is a kind of information processing method that realizes large-scale computing through unified network organization and flexible mobilization of various ICT resources, and is a comprehensive transformation of the traditional IT model from the underlying architecture to the business model.
In the traditional IT deployment mode, ICT equipment and systems such as servers and storage are purchased, built, and maintained by users, and the decentralized deployment mode results in high construction and maintenance costs and low resource efficiency.
Cloud computing uses cloud data centers as physical bearer entities, and through distributed computing, virtual resource management, and cloud native technologies, dispersed ICT resources (including computing, storage, application operation platform, software, etc.) are aggregated into a shared resource pool through the network, and provide services to users in a dynamic, on-demand and measurable manner.
The cloud computing industry chain includes: 1) upstream chip manufacturers and cloud equipment providers, including chips, servers, switches, optical modules, etc.; 2) Midstream IDC data centers and cloud service providers, including IaaS, PaaS, SaaS; 3) Downstream application links, including Internet, finance, traditional manufacturing, government, etc.
By the end of 2021, the scale of the mainland cloud computing market had exceeded 300 billion yuan, a year-on-year increase of 54.4%. The public cloud computing market is currently in a stage of rapid growth, exceeding the private cloud market of 100 billion yuan, becoming the main source of power for the growth of the mainland cloud computing industry.
Cloud vendors have changed from IaaS services to PaaS layer services, that is, from the dependence on the underlying physical resources or logical resources, to the dependence on application service capabilities.
For example, from the virtual machines and storage provided by the IaaS layer to the technical service capabilities such as databases, messages, caches, and logs provided by the PaaS layer.
Global Cloud Computing IaaS Market Landscape in 2021:
PaaS vendors can have more diversified value-added service capabilities, and their profit added value is much higher than that of pure resource operation.
According to iResearch data, structurally, the scale growth rate of the PaaS layer is expected to exceed that of the infrastructure IaaS layer in the future. In terms of market share, according to IDC 3Q21 data, Alibaba Cloud, AWS, and Tencent Cloud ranked in the top three domestic PaaS market shares, accounting for 35.43%/12.17%/11.01% respectively.
Computing power services
Computing power is an important infrastructure for computing from east to west, a new productivity in the era of digital economy, and plays an important role in promoting scientific and technological progress, promoting the digital transformation of industries, and supporting social and economic development.
According to the calculation of the Academy of Information and Communications Technology, the investment scale of the mainland computing power industry will reach 2 trillion yuan in 2020, directly driving the total economic output of 1.7 trillion yuan and indirectly driving the total economic output of 6.3 trillion yuan, that is, every 1 yuan invested in computing power will drive 3-4 yuan of economic output.
Therefore, computing power has become a new focus of global strategic competition, the level of computing power of countries around the world and the level of economic development show a significant positive correlation, the higher the level of economic development, the larger the scale of computing power, 17 of the top 20 countries in the scale of computing power in 2020 are the top 20 economies in global GDP, and the top four are ranked consistently.
From the perspective of the industrial chain, computing power mainly includes three parts: basic computing power, intelligent computing power and supercomputing power, providing basic general computing, artificial intelligence computing and scientific engineering computing respectively.
Among them, the basic general computing power is mainly the computing power provided by the server based on the CP U chip; Intelligent computing power is mainly based on the computing power of artificial intelligence training and inference provided by accelerated computing platforms such as GPUs, FPGAs, ASICs, etc.; Supercomputing power is mainly based on the computing power provided by high-performance computing clusters such as supercomputers. Sugon's high-performance computing business product line includes general-purpose computing servers, artificial intelligence servers and high-performance computer systems, providing comprehensive computing power support.
In 2020, the total scale of mainland computing power will reach 135EFlops, a year-on-year increase of 55%, higher than the global growth rate of 16pct, accounting for about 31% of the global computing power, of which the scale of basic computing power, intelligent computing power, and supercomputing power is 77, 56, and 2EFlop respectively.
AI industry chain: based on data, computing power, and platform, AI application demand drives technology development:
Source: Shenzhen Artificial Intelligence Association, Guohai Securities
The three major operators play an important role in the "East Data West Calculation"
Operators make efforts to solve market and technical problems. For the "East Data and West Calculation" project, the three operators have preliminary design ideas and preliminary sorting out the technology.
The three telecom operators, China Mobile, China Unicom and China Telecom, are playing a key role in the process by virtue of factors such as resource endowment and industrial chain status.
The layout of the three major operators is calculated from east to west:
From the perspective of the capital expenditure composition of the three major operators in 2022, the proportion of investment in transmission networks, "East Data and West Calculation", and computing power network construction will increase.
China Mobile continues to promote the construction of new digital and intelligent infrastructure, and the transmission network investment plan accounts for 25.6% of capital expenditure in 2022, an increase of 4.07% year-on-year. In 2022H1, China Mobile has invested 20 billion yuan in computing power, and it is expected to invest 48 billion yuan in computing power in 22 years, accounting for 25.92% of China Mobile's annual CAPEX plan in 22 years; In terms of computing power network, as of June 22, a total of 593,000 cloud servers/IDC racks/429,000 cloud servers/IDC racks have been put into production, and it is planned to put into production more than 660,000 cloud servers/IDC racks by the end of the year/about 450,000 units, and has achieved full interconnection of backbone nodes of the eastern and western computing power hubs and full coverage of SD-WAN networks.
China Telecom continues to focus on data center and other industrial digitalization capabilities, and in 2022H1, China Telecom's investment in industrial digitalization increased by 9.3% year-on-year, building 81,000 servers and 19,000 IDC racks in terms of computing power, and will continue to focus on data center information infrastructure construction.
China Unicom continues to build a computing power foundation for the digital economy, and the capital expenditure of China Unicom's computing power network in 2022H1 reached 4.6 billion yuan, a year-on-year increase of 119.05%, and it is expected that the investment in computing power network will reach 14.5 billion yuan in 2022, a year-on-year increase of 64.77%; In 2022, China Unicom's computing power is planned to increase by 43%, and it is expected that the number of IDC racks will reach 345,000, a year-on-year increase of 11.29%, and it will continue to improve the "5+4+31+X" computing power layout, build an integrated computing network ecosystem, and cast the first computing power engine for the digital economy.
Looking forward to 23 years, the change trend of capital expenditure structure of the three major domestic operators will continue, and the investment in cable side and "East Data and West Calculation" is expected to further increase.
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