Hong Kong well positioned as Asia’s prime location for data centres, says SuneVision chief

Hong Kong’s strategic location and well-established infrastructure are fuelling the city’s development as a prime Asia location for data centres, according to Peter Yan, chief executive of Hong Kong-listed SuneVision.

Yan, however, said the Hong Kong government should level the playing field for data centre providers to ensure the industry’s healthy development.

SuneVision, controlled by property developer Sun Hung Kai Properties, is a major data centre provider in the city through its unlisted subsidiary iAdvantage, with an estimated 14 per cent market share.

“Multimedia content providers and cloud companies have big demand for data centres for storage and networking. Hong Kong is an attractive choice for them,” said Yan. He expects the market to grow more than 10 per cent per annum over the next few years.

His estimate is in line with a report released by DBS Securities last September that forecast the city’s data centre market to grow 15 per cent annually over the next three to five years, with new demand generated by the hosting needs of multimedia content providers such as LeTV, internet players like Tencent Holdings, as well as the increasing adoption of cloud technology by businesses.