Letters | Hong Kong’s future lies in building strength, not barriers

In the unfolding technological contest between nations, Hong Kong finds itself in a challenging position. While it enjoys institutional advantages under the “one country, two systems” framework, it also faces serious questions about its future competitive edge.

The city is heavily reliant on external energy sources, with an electricity grid that remains vulnerable to supply disruptions. Its innovation ecosystem often struggles to commercialise technology at scale. High costs of living continue to drive away talent, while its manufacturing base has eroded over the years.

Stable, abundant and affordable electricity is the bedrock of technological advancement. AI model training consumes much energy. A relatively old model, ChatGPT-3, was estimated to consume 1,287 megawatt-hours, approximately equivalent to 200 people’s annual electricity consumption in Hong Kong. Also, data centres can consume up to 220-320 terawatt-hours a year of electricity, around 1 per cent per cent of global demand.

Extreme weather such as typhoons and high temperatures adds complexity to electricity transmission in a tropical city like Hong Kong. Transmission and distribution of power to outlying islands also increases difficulty.

Hong Kong ought to prioritise foundational investments, starting with its energy infrastructure. First, conventional power plants are not ideal because the city lacks coal or natural gas resources. Renewable power generation, like wind or photovoltaic, is a good solution. Given land prices in Hong Kong, offshore infrastructure can significantly reduce expenses even taking into account higher construction costs.