APPD Market Report Article
Hong KongAugust 25, 2022
Christopher Street, Head of Data Centres, Asia Pacific
Increasingly intensive data usage
- The trend of increasingly intensive data usage, applications of 5G technology and rapid growth in online businesses are the main drivers of demand.
- Users are also increasingly shifting to cloud storage that drives demand for hyperscale centres.
Robust supply growth to meet demand
- New supply in 2022 was forecasted to total 69 MW, up 17% from 2021.
- Two data centres are slated for completion in 2022, one by iAdvantage and the other by GDS, the first centre developed by the operator in Hong Kong.
Strong interest in data centre assets in Hong Kong continues
- The Asia Pacific Cities Fund reportedly acquired a data centre for HKD 2.88 billion (USD 371 million). The facility is a fully-occupied data centre of 270,000 square feet of gross floor area in the Kwai Chung district of Hong Kong.
- Global Switch Holdings Ltd. received bids for its data centre assets from PE funds, Sovereign wealth funds and various operators which are expected to value the firm at USD 10 billion. The bid round was concluded in early August.
Outlook: Occupiers to have multiple options with increasing supply
- The growing reliance on digital technology, such as the metaverse, cryptocurrency and online shopping platforms, is driving the demand for data centres.
- In addition, demand for data centres is further bolstered by the adoption of cloud services, which is becoming more common in both public and private sectors.