Hong Kong’s race with Singapore to be Asia’s data centre hub gets another leg up as final site sells at 45 per cent premium to valuation
- Deal sharpens the city’s competitiveness in a race with Singapore to be a regional smart city
- The final site sold for HK$5.45 billion, more than expected
Hong Kong’s biggest and last remaining piece of land designated for development into a data centre sold for a higher-than-expected HK$5.45 billion ((US$697 million) to Sunevision Holdings, sharpening the city’s competitiveness in a race with Singapore to be the regional hub for such purpose-built facilities.
The winning bid was 45 per cent higher than Colliers International’s estimate of HK$3.75 billion for the plot.
“Hong Kong has been lagging behind Singapore as we do not have sufficient land earmarked for data centres. With this large scale development, global and regional data centre operators will definitely set up their facilities in Hong Kong,” said John Siu, the managing director of Cushman & Wakefield.
It would indirectly increase Hong Kong’s global connectivity, and further reinforce the city as an internet hub in the region, he said.
“Multinational corporations will also consider setting up their headquarters in Hong Kong over rivals once we provide an abundant supply of data centres for the storage of their servers,” he said.
The 295,405 square foot site at Wan Po Road Area 85 in Tseung Kwan O attracted nine bidders when the tender was closed on Friday. With a plot ratio of 4.5 times, the site will house a structure with an area of 1.21 million square feet.