Digital Transformation Driven by Internet Data Center

With the acceleration of the digital transformation and technological upgradation of various industries, in the wake of application of new technologies such as 5G, artificial intelligence, and the internet of things, the demand for data storage, computing, transmission, and applications has greatly increased. Remote working, remote education, and e-commerce on account of the pandemic have led to a drastic increase in data consumption as well. The processing and analysis of massive data requires the construction of an information infrastructure—Internet Data Center (IDC). In the past few years, China's government has been dedicating itself to the task of constructing IDCs in some underdeveloped areas and establishing more detailed regulations. This chapter introduces some basic policies and implications behind this and a mathematical way to quantitatively analyse the investment efficiency of R&D resources in China's different regions. Several recommendations for the government and the society at large have also been outlined in this chapter for improvement in the whole ecosystem for IDCs in China.