New | In wake of Google pull-out, SuneVision still sticks to its data centre project
Sun Hung Kai Property's technology arm will invest about HK$4 billion in building an advanced data centre in Tsueng Kwan O
Undeterred by Google’s decision to abandon its data centre plan in Tseung Kwan O, SuneVision, the locally listed technology arm of Sun Hung Kai Properties, is going ahead with its own high-tier data centre project that could cost about HK$4 billion.
“We are very positive on the market outlook for data centres,” said Peter Yan King-shun, the executive director and chief executive at SuneVision, which also has data centres in Chai Wan, Kwun Tong, Sha Tin and Tsuen Wan.
In October, the company won a site in Area 85 on Wan Po Road in Tseung Kwan O for HK$428 million, or HK$957 per square foot, in a government tender. The site, which will yield a gross floor area of 473,611 sq ft, is about five minutes’ drive from the one Google won in 2011.
John Siu, managing director of international property consultant Cushman & Wakefield Hong Kong, estimated SuneVision’s project could involve an investment cost – including land, construction and installation costs – of between HK$3.8 billion and HK$4.8 billion.
Yan did not disclose the company’s total investment cost but said it would be at the low end of the market estimates. He said the first phase, or at least 60 per cent of the gross floor area, would come on stream by the end of 2018.
Siu played down the impact of Google’s decision to abort the data centre plan, saying there was increasing demand for high-tier rack spaces from corporate users.
“We keep receiving inquiries from investors interested in data centres in Hong Kong. Some of them are new to the city while others are existing players seeking to add more space,” he said.