ByteDance Rents a Fifth of China's Data Centre Capacity, SemiAnalysis Says
ByteDance occupies roughly a fifth of China’s delivered data centre capacity, and it rents nearly all of it, according to research firm SemiAnalysis. That makes the TikTok owner the key customer for every wholesale data centre operator in China, the firm stated in a report published on Friday.
The estimate is based on SemiAnalysis' new China Datacenter Model, tracking over 1,000 facilities run by more than 60 operators. Currently, China boasts more than 24GW of data centre capacity—a figure surpassing the approximately 14GW across Europe, the Middle East, and Africa combined.
“The biggest tenant files no 10-K. Several of the largest landlords have never listed,” noted SemiAnalysis.
Rapid Capex Growth in China's Tech Giants
Alibaba, Tencent, and Baidu collectively spent a whopping $20 billion on capital expenditure in Q2 this year—more than doubling their previous figure. Despite this substantial investment, all three companies reported negative free cash flow for the first time.
ByteDance, remaining private, does not disclose its spending. Including ByteDance, these four tech giants splurged approximately $35 billion in 2024 and over $50 billion in 2025, according to SemiAnalysis' estimates. They are on track to reach $100 billion this year.
Efficient Construction and Expansion Westward
China consistently delivers 100MW facilities within under 12 months—a much faster pace than the US's 12-13 month construction period before permits. Much of this new construction is focused inland, aligning with the 2022 policy "Eastern Data, Western Compute".
Inner Mongolia has emerged as a preferred location for large AI campuses due to its significantly lower power costs compared to major Chinese cities. ByteDance operates its own campuses in Datong, Wuhu, and Inner Mongolia, establishing entities in Ningxia just last July.
Foreign Leases on the Rise
SemiAnalysis predicts a substantial doubling of leased capacity overseas for Chinese hyperscalers from 2026 to 2029, reaching nearly 4GW. ByteDance significantly contributed to Nscale’s 2025 sales, according to the Financial Times.
In an apparent shift, Beijing may reportedly permit ByteDance and Alibaba to purchase new Nvidia chips.