Data Center Operators View Hong Kong as Fertile Ground for Growth | Knowledge of the data center
With major regional investments in cloud computing and artificial intelligence, the Hong Kong data center market is seeing major expansion with the opening of two state-of-the-art facilities, with two more on the way.
The industrial property group Goodman has inaugurated the first phase of its new Goodman Tsuen Wan West district in Hong Kong. The 1.6 million square foot campus will become one of the largest data centers in Hong Kong. This development is part of the company’s goal to expand into Asian markets.
The first two completed buildings are already fully leased to Goodman’s global customers. The remaining two buildings will be completed in 2024. These state-of-the-art data centers feature independent high-voltage power supplies designed with resilience in mind to meet a wide range of data uses. Of that, 87% of data center space is already reserved for global technology customers.
The growing Hong Kong market is geographically attractive for data center developers because it serves both the Chinese mainland and major Asia-Pacific economies like Japan, Korea, and Singapore via high-capacity fiber optic cables. Hong Kong also serves as a financial hub, with local customers requiring data center space for cloud adoption.
Proximity to the Chinese market is particularly conducive to growth. Over the past decade, China has made significant investments in AI. In 2021 alone, Chinese investments represented one-fifth of global funding for private investment in AI. Large data centers are needed to process AI data for tasks such as autonomous driving or voice recognition. In order to expand its AI capabilities, Chinese cloud providers are likely to find Hong Kong as a convenient market.
Hong Kong Data Center Market Growth Prospects
That doesn’t mean Hong Kong doesn’t have its share of data center market growth hurdles. Land scarcity in Hong Kong presents a complication for data center site selection, and local regulations may make construction more difficult than in neighboring markets. Goodman, however, circumvented this difficulty by revitalizing an unused textile factory to meet the growing needs of the region.
The Goodman Tsuen Wan West district is the first data center in Hong Kong to offset carbon emissions from construction. Data centers are built to be durable. Each building is pre-certified LEED Gold and incorporates solar panels, reinforcing Goodman’s commitment to sustainability. This marks a break with mainland China data centers, that depend on a high carbon footprint to operate.
“Goodman Tsuen Wan West is the latest showcase of our commitment to urban regeneration, while meeting growing local and regional demand for high-level data centers, technology infrastructure and emission reduction targets” , said Kristoffer Harvey, CEO of Greater China at Goodman. new data centers.
The demand for data centers in Asia is expected to skyrocket over the next five years. Cloud computing, IoT, increased smartphone penetration, and the rollout of 5G all need data centers to function. Government support is important for the growth of the data center market in Hong Kong in particular. The government’s ambitious goals to digitize and implement smart city initiatives make it an inviting place for data center operators to expand.