The demand for data centres in Hong Kong is skyrocketing, driven by the surge in AI and advanced technologies. The market is projected to reach US$3 billion by 2023, with expected growth to US$5.7 billion by 2028. In this article, let’s explore the key opportunities and challenges in this rapidly growing industry.
Why Hong Kong is an Ideal Data Hub
As a global financial and logistic hub, Hong Kong attracts multinational corporations that strategically position their data centres in the city. The close ties with mainland China create additional demand for secure data centre facilities.
Key Advantages of Hong Kong’s Infrastructure
Hong Kong’s robust telecommunication infrastructure, with over 300 internet service companies and connections to 12 external submarine optical fiber cable systems, ensures fast and reliable internet capabilities. The city’s reliable electric power supply exceeds 99.997% reliability.
Business-Friendly Environment
Hong Kong’s free market system, low tax rates, and free flow of capital make it an attractive destination for data centre development. The free flow of information without content censorship fosters innovation and supports efficient data operations.
Investor Demand and Land Scarcity Challenges
Investor demand for data centres is high, but there is a shortage of available stock in the market. Converting industrial buildings and acquiring suitable sites through government initiatives are viable options to overcome land scarcity challenges.
Navigating Complexity with Professional Guidance
Developing data centres in Hong Kong requires expertise to navigate land and legal challenges. Professional guidance is crucial for a smooth and successful development process.
Hong Kong’s data centre market offers significant opportunities for businesses, driven by its strategic location, robust infrastructure, and business-friendly environment. Overcoming challenges such as land scarcity and stock availability is possible with innovative approaches and professional guidance.
Contact TraxComm today to explore how our data centre services can contribute to your organization’s success in Hong Kong’s booming data centre market.