Hong Kong needs more renewable power and government land grants to be a magnet for low-carbon data centres: experts

Data centre clients are demanding low-carbon facilities, but Hong Kong lacks sufficient renewable power and the ability to build more, experts say

Government support for power and space issues is required to make the city a data centre hub, speakers say during an innovation summit

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Clients of data centres are demanding lower carbon footprints as they pursue their own carbon-reduction targets. Photo: Shutterstock

Published: 10:30am, 22 Oct 2023

Hong Kong needs to improve access to electricity from renewable sources and provide government subsidies and land grants if the city wants to be a hub for the data centre business in the Asia-Pacific region, according to experts.

Limitations on using renewable power in Hong Kong present a major barrier to constructing data centres with a lower carbon footprint in the city amid rising energy consumption, said Zena Cheng, vice-president of channel and partnerships at Sunevision Holdings, one of the largest data centre providers in Hong Kong and the technology arm of Sun Hung Kai Properties.

“The servers are getting smaller and smaller, but the amount of power that is required is getting higher and higher,” Cheng said during a panel discussion on sustainable data centres at an innovation summit hosted by Schneider Electric on Monday. “That means the density of power consumption per square foot is getting higher.”

Globally, data centres consumed between 240 and 340 terawatt hours of electricity in 2022, according to estimates from the International Energy Agency. That translates to between 1 per cent and 1.3 per cent of global electricity demand and represents a 70 per cent increase in power demand since 2015.

Solar panels are seen on the rooftop of the Hong Kong Disneyland Hotel on Lantau Island on June 2, 2023. Building large solar farms or wind-power facilities is difficult in the city, according to data centre operators. Photo: Yik Yeung-man

Meanwhile data centre clients, who are pursuing their own carbon-reduction targets, are pressing the industry to adopt more sustainable practices.

“Our customers are driving for this change because they are looking for ESG [environmental, social and governance],” said Clement Chung, director at engineering firm Arup, speaking during the same panel discussion. “If you want to have business, you have to” look for environmentally friendly solutions.