Unicom opens HK$3 bn data center in Tseung Kwan O

Hong Kong already the largest hub for data centres in Asia-Pacific region

PUBLISHED : Thursday, 18 August, 2016, 8:51pm
UPDATED : Thursday, 18 August, 2016, 8:51pm

China Unicom opened a HK$3 billion internet data centre in Tseung Kwan O, the company’s first and largest facility outside of mainland China, in a move that helps Hong Kong turn itself into a regional hub for such service.

A data centre is a secure, temperature-controlled facility built and equipped to house large capacity server computers and enterprise data storage systems, with multiple power sources and various high-bandwidth connections to the internet.

Besides Tseung Kwan O, data centres can also be found in Tai Po, Yuen Long, Tsuen Wan, Kwai Chung, Sha Tin, Kwun Tong, Kowloon Bay, San Po Kong, Quarry Bay, and Chai Wan.

In 2014, Google scrapped plans to build a US$300 million data centre complex in Tseung Kwan O, but the company’s abandoned project did not stop other players from investing in data centres in Hong Kong.

Netsuite said in May that it had plans to establish its first data centres in the region next year, with Hong Kong and Singapore as likely locations for its facilities.

Equinix, PCCW and iAdvantage have already set up data centres in Hong Kong, while other firms such as Global Switch plans to open a facility in the near future.

“Over the past few years, Hong Kong data centre facilities have significantly increased, from a total floor area of over 300,000 square metres in 2012 to 460,000 square metres as of last year,” Hong Kong’s Chief Executive Leung Chun-ying said.

To encourage data centres to set up shop, the Hong Kong government in March offered incentives and amended lease regulations for industrial buildings to be renovated into data centres, Leung said. Tseung Kwan O is already the largest data centre hub in the Asia-Pacific region.

Two plots of land that measure about one hectare each have been set aside for high-end data centre development, and will be auctioned off to operators in the future, Leung said in a blog.

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