APPD Market Report Article
Hong KongFebruary 28, 2023
Nelson Wong, Executive Director, Hong Kong
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.