Data Centers in China: Borderstep on Location Factors

A recent article by Table.Briefings examines why the expansion of data centers in western China is running into difficulties. As part of its research, the editorial team spoke with Dr. Ralph Hintemann of the Borderstep Institute about data center location factors, latency, and current bottlenecks in building new capacity.

Not All Computing Workloads Are Location-Independent

Dr. Ralph Hintemann explained that location requirements depend strongly on the type of workload. For AI training or simulation tasks, proximity to users is often less important. This is different for applications in which milliseconds matter. In such cases, latency becomes a key factor in choosing a data center location.

Long Lead Times Are Slowing the Expansion of New Capacity

The background discussion also covered bottlenecks in the technical infrastructure required for new data centers. Hintemann pointed to long lead times for key components such as transformers, switchgear, backup generators, and cooling systems. At the same time, increasingly powerful AI chips are placing greater demands on cooling infrastructure.

The article Data centers: China’s bet on its western regions is not paying off was published by Table.Briefings. The full article is available there behind a paywall.

About Dr. Ralph Hintemann

Dr. Ralph Hintemann is a partner and senior researcher at the Borderstep Institute for Innovation and Sustainability. With a background in engineering and economics, his research focuses on the megatrends of digitalisation and sustainability. Ralph Hintemann is an internationally recognized expert on the sustainability of digital infrastructures, particularly data centers. At a time of profound transformation, he provides scientifically grounded insights and practical recommendations through his interdisciplinary perspective.

Borderstep's expertise in Digitisation & GreenIT

For more than a decade, Borderstep has been conducting research on the resource-efficient use of digital products and services. Its work covers all aspects of this field, which is often referred to as Green IT. On the one hand, the term describes ICT products whose manufacturing, operation, and end-of-life management require less energy and fewer resources (“Green in IT”). On the other hand, and of even greater significance, it refers to digital solutions that help reduce resource consumption across all sectors of the economy and areas of everyday life (“Green through IT”).

Data centers are a core component of digital infrastructure. Since 2007, the Borderstep Institute has been analyzing the electricity consumption of data centers in Germany and across Europe. This work is based on a proprietary structural model that has been regularly updated since 2010.

The model provides a detailed representation of data centers by size, technology, and operating model—including cloud, edge, and traditional data centers. It also takes into account different server types, age structures, and building technologies such as cooling and power supply systems. This enables Borderstep to provide robust data and scenarios on the development and sustainability of digital infrastructures.

Through projects such as TEMPRO, DC2HEAT, DCESS, and EUDCEAR, the Borderstep Institute develops solutions to support climate-friendly and energy-efficient digitisation.

View all current projects in the Digitisation & Green IT research area.

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Dr. Ralph Hintemann
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