APPD Market Report Article

Hong Kong

February 28, 2023

Nelson Wong, Executive Director, Hong Kong


USD 360


Strong pre-commitments indicate sustained demand growth

  • A high commitment rate of future data centres (DCs) was recorded, demonstrating the robustness of DC demand.
  • Of the total capacity, 100% was pre-committed in MEGA Fanling by SUNeVision while 96% was pre-committed in HK1 by GDS. According to Goodman, its DC hub in Tsuen Wan attained 86% pre-commitment rate in 3Q22.

Supply additions maintain pace with demand

  • About 174MW was completed at Tsuen Wan and Fanling in 2022.
  • Operations of GDS’ first HK data centre in Kwai Chung expected in 2022 has been rescheduled to 2023.

Conversion of traditional assets to data centres gains pace

  • Hong Kong’s major electricity provider, CLP, filed an application to convert an electricity substation into a 21-storey data centre, leveraging its expertise in designing electricity grids for previous data centres.
  • Angelo Gordon was set to join the HK DC centre by converting two flatted factories into data centres in Kwai Chung and Tuen Mun.

Outlook: Lower energy prices to maintain its primary DC hub status

  • The low risk of natural disasters such as earthquakes in Hong Kong remains a strong attraction to DC investors.
  • With the surge in energy costs in the West, DC operations appear to be more lucrative in Hong Kong, which recorded a lower rise in energy costs.

Note: Hong Kong Data Centres refers to Hong Kong's overall data centre market.

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