Chinese Game Ban is Emptying Data Centers

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With China drastically limiting gaming for minors, it’s also impacting the capacity of local data centre players, Canalys said.

 

In China, minors are now only allowed to game for three hours a week. As a result, data centres in the country now have overcapacity, says Steve Brazier, CEO of market researcher Canalys, at an event of the company. “25 to 30 percent of China’s cloud capacity was for gaming,” he said, according to The Register.

Many details about how much that capacity is now and which companies are most affected by it are unknown. But according to Brazier, construction plans for new data centres have already been postponed due to the rules. At the same time, he warns that regulations, both in China and in other countries, will affect the market.

Furthermore, Brazier also noted that the supply chain remains problematic due to corona. This means that manufacturers have to choose whose orders they complete first, and large companies often win the day. Therefore, he argues that SMEs have to make do with what they can get on the market, often regardless of the price.

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