Hong Kong needs to be equipped for data centre industry boom

Today, many of our business and leisure activities are closely tied to technology and data, be it mobile apps and cloud storage or banking transactions and big data analytics. None of these would be possible without the back-end support of data centres.

The data centre industry is therefore rapidly emerging in Hong Kong and globally as one of the fastest growing sectors, with demand for data centre space from technology firms, telecom service providers, financial institutions and even small and medium enterprises (SMEs).

The capital investment required for the data centre sector is significant, and cities are eager to attract users to their market by offering suitable space. Hong Kong is no exception, with significant effort in the past few years devoted to capturing and nurturing these economy-boosting opportunities. However, the chronic shortage of space across all real estate sectors is a glaring barrier to Hong Kong’s hope to further develop as a data centre hub.

Despite the limited land supply, Hong Kong is still being targeted by international investors, developers and occupiers due to its role as a gateway to China. Keppel T&T has recently announced a plan to co-develop an international carrier exchange in Hong Kong with PCCW Global. The 1,000 sq m telecommunications centre is expected to be completed by the end of 2016.

Mainland China players have also been active. China Mobile is operating a large high-tier data centre in Tsuen Kwan O industrial estate while China Unicom is due to open its flagship data centre close by. This estate is home to the bulk of high-tier data centres in Hong Kong.