Concrete Analysis | This is how Hong Kong can become an international data centre hub in Asia-Pacific region
- Hong Kong remains a prime location for data centre development, according to Cushman & Wakefield’s 2020 Global Data Centre Market Comparison report
- Government should expedite and expand the current development of the Hong Kong-Shenzhen Innovation and Technology Park
According to Cushman & Wakefield’s 2020 Global Data Centre Market Comparison report, Hong Kong retained its high ranking as a prime location for data centre development.
With the acute shortage of land supply being a fundamental cause for skyrocketing land prices, high land prices remain a major obstacle to Hong Kong’s vision of becoming the no. 1 destination for global data centre development.
Today, 91 per cent of data centres are situated in the New Territories, comprising a total gross floor area (GFA) of 8.38 million sq ft, with 52 per cent of the total market GFA being purpose-built developments, as indicated in Cushman & Wakefield’s Spring 2021 Data Centre Update – APAC: Hong Kong, Singapore, Sydney, Tokyo.
Different ecosystems in the two largest submarkets are observed: those that are purpose-built, mostly situated in Tseung Kwan O, which accounts for 78 per cent of the GFA; and the conversion of existing premises, mostly situated in the Tsuen Wan, Kwai Chung and Tsing Yi markets, which account for 81 per cent of the converted space.
Within the operator market, data centres are owned by real estate investors, as pure real estate owners conduct non-operational businesses, which charge rent to service providers.